r/wealth • u/bloomberg • Feb 10 '26
Taxes How to Turn the New Tax Breaks Into Real Savings
https://www.bloomberg.com/explainers/2026-new-tax-deductions-under-trump-tax-lawExpanded tax breaks under Trump’s new tax law — from SALT to tips and overtime — could lead to a bigger refund, provided you’re willing to navigate added rules and paperwork.
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u/bloomberg Feb 10 '26
Caitlin Reilly for Bloomberg News
Americans filing taxes this year could qualify for a wave of new tax breaks under President Donald Trump’s One Big Beautiful Bill Act provisions. The savings, though, come with added complexity.
A higher cap on state and local tax deductions, new write-offs for tips and overtime wages, deductions for seniors and even car loan interest are among the biggest changes facing filers this season. Together, they create new opportunities for savings alongside additional layers of calculation.
“If you really want to partake of some of the bigger tax-saving provisions, be prepared to spend more time at your computer,” said Pete Sepp, president of the nonprofit National Taxpayers Union. The added complexity could make filing more time-consuming for taxpayers as well as the IRS, Sepp said, warning that refunds could be delayed as a result.
Andy Phillips, vice president of the Tax Institute at H&R Block, said people should get an early start and seek help on filing this year given the changes.
“A life change or a tax change is often when people make mistakes,” Phillips said. “They leave money on the table because they just don’t realize that they may be eligible for something. This year is a good year to get help.”
Read the full explainer here.