A recent article from The Wall Street Journal outlines several important tax updates that American taxpayers can take advantage of this year.

Among the most significant changes is the new Senior Deduction, which allows taxpayers aged 65 and older to claim an additional $6,000 on top of their standard or itemized deductions. Another major update involves SALT (State and Local Tax) deductions, including a $10,000 increase in the maximum property tax deduction limit.

The article also highlights the introduction of new retirement savings accounts for children born between 2025 and 2028. Under the Trump administration’s proposal, if parents open one of these accounts in their child’s name, the federal government has pledged to contribute $1,000 to each account.

Additional tax benefits include:

  • A deduction for interest paid on a new vehicle purchased in 2025

  • A deduction for overtime pay

  • A deduction for tip income

The article further explains specific filing considerations, such as reporting cryptocurrency sales and filing taxes on behalf of a deceased family member. It also notes that the previous Electric Vehicle tax credit no longer applies to vehicles purchased after September 2025.

Finally, taxpayers are reminded that state tax laws vary, making it important to review the specific rules that apply in their state.

Source: “Tax Deductions for 2025 That Can Get You a Bigger Refund,” The Wall Street Journal, Jan. 26, 2026 — https://www.wsj.com/personal-finance/taxes/tax-deductions-2025-refunds-7a6a64bd?mod=Searchresults&pos=1&page=1