WASHINGTON, DC (WOWO) With tax season underway, new rules for the 2025 tax year could mean larger refunds for many Americans.
Purdue University tax expert J.T. Eagan says changes impacting overtime pay, tip income and a new senior deduction may increase refund amounts depending on individual circumstances.
“Anybody that is receiving overtime pay or tip income. There’s even an extra senior deduction this year that wasn’t there in previous years,” Eagan said in an interview with WXIN and WTTV. “So depending on your situation, you could have a bigger refund this year.”
Eagan says workers who earn overtime may need to request documentation from their employer separating overtime wages from regular pay to ensure accurate filing.
He also cautions against relying solely on artificial intelligence programs to prepare tax returns. Eagan says A.I. systems can misinterpret complex and frequently changing tax laws, sometimes generating inaccurate information, a problem known as “hallucination.”
Eagan advises taxpayers not to wait until the last minute to file. In previous years, filers could rely on an April 15 postmark to meet the deadline.
However, he says changes in how the U.S. Postal Service processes mail could delay the application of postmarks, potentially resulting in late filings.
Whether filing independently or working with a tax professional, Eagan recommends starting early and reviewing all documentation carefully to avoid delays or penalties.
