Everyone’s favorite holiday has arrived: Tax Day.
April 15 (today) is the last day for taxpayers to file their tax return and pay their bill without incurring penalties. (Today is also the deadline to file a six-month extension.)
For professional tax preparers, the day caps a busy season filled with client requests.
“We always get tons of questions,” said Deltrease Hart-Anderson, owner of D Hart Accounting Practitioner in West Columbia, SC. “Sometimes it’s because people have gone to YouTube University or Instagram University and think all the things apply to them.”
Hart-Anderson responded to many customer inquiries this year about modified deductions for categories such as depreciation, auto loan interest, and state and local taxes. Last year’s One Big Beautiful Bill introduced those benefits and others to millions of Americans.
The new tax law includes a higher limit on the state and local tax deduction, a new deduction of up to $10,000 of auto loan interest, as well as deductions for tips and overtime. Seniors also get a new opportunity: an additional $6,000 deduction for seniors 65 and older, subject to income limits. You can claim it whether you take the standard or itemized deduction.
So far, the federal government has received more than 134 million individual income tax returns this filing season, and the vast majority were filed electronically, Internal Revenue Service CEO Frank Bisignano said Wednesday in testimony before the Senate Finance Committee.
The average refund amount totaled more than $3,400, an 11% increase over last year, primarily due to new deductions in the One Big Beautiful Bill Act.
According to the Treasury Department:
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More than 6 million taxpayers have claimed “no tip taxes,” with an average deduction of $7,100.
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More than 25 million taxpayers have claimed “no overtime taxes,” with an average deduction of more than $3,100.
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More than 30 million seniors have claimed the enhanced deduction.
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More than 1 million taxpayers have claimed the auto loan interest deduction, with an average deduction of $11,800.
“Working families across our nation are benefiting from pro-growth policies like never before,” Bisignana told senators.
Typically, about 20% of taxpayers wait until the last day to file, Lisa Greene-Lewis, a certified public accountant and TurboTax expert, told Yahoo Finance. That proportion was even higher this year. But the higher refunds should provide additional incentive for taxpayers to file and pay their bills by the 11:59 p.m. deadline.
Emma Ockerman is a reporter who covers economics and labor for Yahoo Finance. You can contact her at emma.ockerman@yahooinc.com.