On Friday afternoons during tax season I am a certified volunteer tax preparer for AARP Tax-Aide. This is the organization that does free tax preparation for seniors and lower income taxpayers. Here are my observations on the 2025 tax season so far:
- The new Senior Deduction is beefing up refunds. If you’re in the 22% tax bracket, a married couple could save $2640 and a single person could save $1320 on their 2025 taxes with this new deduction. But if your overall income is either really low or really high, you might not see any benefit.
- If you or someone you know uses the free AARP Tax-Aide service, be aware that appointments filling up quickly this year. And perhaps because they anticipate a higher tax refund, people are filing their taxes earlier than normal.
- If you rely on tips, the new tax law definitely helps you out.
- If you hopped on the sports betting wagon (and I hope you haven’t!), your taxable winnings will NOT be offset by your losses, unless you itemize. So even if you lose money overall, you will likely end up paying taxes on those gambling winnings.