Tax season is underway, bringing potentially larger refunds for many Americans. Experts predict that filers could see up to $1,000 more back, or a reduced balance due. These changes stem from the One Big Beautiful Bill Act, impacting deductions, credits, and rules around tips, overtime, and car loans.

Key changes include a boosted standard deduction and increased caps for state and local tax (SALT) deductions, especially benefiting higher earners. The child tax credit also saw a slight increase. For those with renewable energy equipment, tax perks from last year are still available, potentially offering a credit for solar projects or energy efficiency improvements.

The IRS anticipates receiving around 164 million individual income tax returns. However, a survey revealed that many taxpayers are unaware of the new tax changes. For those with auto loans, interest paid on new, made-in-America vehicles purchased for personal use can be deducted.

Ultimately, understanding these changes is crucial to maximize any potential financial benefits. While the filing season may seem daunting, it's important to remember that there were major tax law changes in 2017, and people made it through that time. Taxpayers should ensure they stay informed to navigate the complexities.