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How to Use Trump's New Tax Cuts to Your Advantage Now

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How to Use Trump's New Tax Cuts to Your Advantage Now

2 Min Read

The "big, beautiful" bill recently passed by Congress and signed into law by President Donald Trump makes several retroactive tax changes, meaning there's a chance for some taxpayers to benefit sooner rather than later.

The One Big Beautiful Bill Act became law two days after the midpoint of the 2025 tax year, which fell on July 2. Notably, some of the key tax cuts in the legislation apply to the current tax year, meaning the changes affect the returns most taxpayers will file next spring — by April 15, 2026.

Specific groups of taxpayers may now be on track for larger tax refunds as a result of these provisions, like the $6,000 "senior bonus" for many taxpayers 65 and older, as well as new deductions for tipped workers and employees putting in overtime. In light of the new law, many Americans may have essentially been overwithholding for the first half of the year.

For individuals under 65, the potential tax savings of a few hundred dollars from this increased standard deduction does not create an urgent incentive for a midyear change to withholdings, according to Bob Lickwar, tax managing director at UHY.

"Where it really may come in, though, is individuals who may have received tip income or overtime for the first portion of the year, and now they're going to find out that they're going to be receiving a deduction for some of that tip income or that overtime income," he says.

 

Read the full article published by Money.com.

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