ORLANDO, Fla. – If it’s February, it’s tax filing season.
By now most of your W-2s and other tax forms should have made it to your mailbox (or inbox). Here in Florida, filing your 2025 taxes still requires you to have paperwork in by Wednesday, April 15, but there are some key areas that have changed between 2024 filings and 2025 filings.
We spoke with CBS News Business Analyst Jill Schlesinger, who broke down the new tax rules – specifically four provisions you should be aware of. Jill also has some tips for the best way to file and the fastest way to get your refund.
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Here’s a transcript of Jill’s complete interview about filing 2025 taxes in 2026:
WKMG: Tax season is open and filing this year will see some significant changes from filing a year ago. CBS News Business Analyst Jill Schlesinger is here to help us navigate our new tax season landscape. Jill, last year’s tax bill, part of the Big Beautiful Bill Act, means some big changes for some taxpayers. What do we need to know?
Jill Schlesinger: Well, the IRS is highlighting four of these new provisions that I think are gonna impact a lot of people. So just a couple of things. These are temporary. They’re only in place for four years. And all of these have very specific rules around them, income testing and caps.
- A $6,000 bonus deduction for seniors
- No tax on tips
- No tax on overtime
- And no tax on car loan interest
So, if you think that you might be entitled to one of these, you should check out the brand new Schedule 1A (form) and very carefully read the instructions to make sure that you are entitled to the whole thing.
WKMG: Jill, refunds are expected to be bigger this year, why is that and what’s the best way to get your money quickly?
Jill Schlesinger: Well, it’s all those new tax law provisions, but also a larger standard deduction. So that likely means that we are going to see many people over-withhold. And so, refunds, which averaged over $3,100 last year, could rise depending on your situation.
The fastest way to get your refund, according to the IRS, is to file electronically and use direct deposit. If you do so, you should get your return within 21 days, as long as there are no issues with your return.
WKMG: And Jill, filing your taxes can be complicated and it can be costly. What are some free resources available to those who may need some help?
Jill Schlesinger: If you made less than $89,000 last year, you must (Ed: can) use IRS Free File. Go to IRS.gov and it’ll walk you through the process. There’s also the Volunteer Income Tax Assistance Program (VITA), that’s free tax help, to people who make $69,000 or less, people with disabilities, and limited English speakers.
The tax counseling for the elderly is a little bit unique because there’s free tax help for those who are 60 years and older. Because they specialize in questions about pensions and retirement and Medicare-related issues.
Finally, we’ve got the Department of Defense’s MIL-Tax. This is offering free return prep and electronic filing for federal tax returns and up to three state returns. It’s open to all military members and some veterans and there’s no income limit. So, MIL-tax is a very robust program.
WKMG: Jill, thanks a lot, great to see you. You can see Jill regularly on CBS Mornings and the CBS Evening News. For more analysis, go to JillOnMoney.com.
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Sidebar:
Let’s go into a little deeper explanation of some of the things Jill addressed and why they were changed (remember, these are only temporary changes for four years):
$6,000 Bonus Deduction for Seniors
- What is it: Taxpayers age 65 and older may qualify for a new $6,000 “senior bonus” deduction on top of the regular standard deduction and the existing age‑65 extra amount, subject to income limits.
- Purpose: To ease the tax burden on seniors who may be on fixed incomes (like Social Security or retirement savings).
- Impact: Reduces taxable income, potentially lowering what seniors owe – or increasing their refund.
No Tax on Tips
- What is it: There’s a new deduction that can effectively reduce or eliminate federal income tax on part of your tips, up to certain limits, for 2025–2028. You still have to report tips; the break comes through a deduction, not by ignoring the income.
- Purpose: To increase take‑home pay for workers who are regularly tipped. Those workers can now keep more of their tips after tax, and the deduction can reduce how much their tips add to their final tax bill.
- Impact: Significant tax relief for service industry workers, potentially increasing take-home pay.
No Tax on Overtime
- What is it: Overtime pay may now qualify for a special deduction on the “extra” portion above your regular rate, subject to caps and income phase‑outs. That means some or all of your overtime could end up untaxed, but your regular wages still are.
- Purpose: With this change, your regular wages remain fully taxed, but a portion of what you earn beyond 40 hours a week may effectively end up untaxed after the deduction, subject to limits.
- Impact: This change could now incentivize workers to take on more overtime, boosting take-home pay, especially for hourly and blue-collar workers.
Deductions on Car Loan Interest
- What is it: Taxpayers can now deduct up to $10,000 per year in interest on qualifying auto loans for personal vehicles through 2028, even if they take the standard deduction.
- Purpose: Interest on car loans could be deducted from taxable income, reducing overall tax burden.
- Impact: This would primarily benefit middle-income Americans who rely on financing vehicles. However – the deduction has vehicle and income restrictions, so not every car loan will qualify.
People Earning Up to $89,000 Can Use IRS Free File
For the 2026 filing season, this is part of an expanded IRS’s Free File program which now covers taxpayers with an AGI (Adjusted Gross Income) of up to $89,000.
Why this instead of a commercial service like TurboTax or H&R Block?
The IRS says it’s to save taxpayers money (as many consumers pay for these services), to prevent up-selling or hidden fees from commercial tax prep companies, and to increase IRS oversight and reduce filing errors or fraud.
Hope this helps!