Why some taxpayers aren't seeing bigger refunds from new breaks [Yahoo! Finance]
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Source: Yahoo! Finance
While millions of people are seeing bigger tax refunds this year thanks to these new deductions, others are seeing far less extra cash than they might have imagined. One possible reason? If you make too much money overall, you might receive only a partial deduction or no deduction at all on your 2025 federal income tax return for these new tax breaks. It's important to understand how income phaseouts work for these deductions because these tax breaks will also exist in tax years 2026, 2027 and 2028. At this point, tax experts say, the phaseout thresholds are not indexed for inflation. The four big tax breaks that were part of the One Big Beautiful Bill Act — deductions on tip income, overtime, new car loan interest and an enhanced deduction for those 65 and older — all come packed with complicated rules and restrictions, including income thresholds. These tax breaks are retroactive for all of 2025 even though the One Big Beautiful Bill was signed into law July 4 by President Do
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