YOUNGSVILLE, La. (KATC) — Individual tax filing begins Monday, Jan. 26, and taxpayers may notice several changes this year following recent federal tax law updates that could affect refunds or the amount owed.
Local tax preparers say some of the biggest changes could work in taxpayers’ favor, but only if they understand how the new rules apply to their specific situation.
“The biggest difference is refunds are going up,” said Setonya Mouton, a local tax preparer and owner of Universal Reconstruction Tax Service. “There’s no tax on tips, no tax on overtime, and also no tax on car interest, so that’s a win.”
Mouton said increases to the standard deduction are also significant this year. For married couples filing jointly, the standard deduction has changed as follows:
- Married Filing Jointly: $31,500. (up from $29,200 in 2024)
- Single Filers: $15,750. (up from $14,600 in 2024)
- Head of Household: $23,625. (up from $21,900 in 2024)
In addition to higher standard deductions, there are new and expanded deductions aimed at seniors, working families and hourly workers. Tax professionals caution that while more people may qualify for deductions, the rules are more detailed than in past years.
“Before filing, always bring your last check stub, your W-2 or your 1099. We can look at it, but make sure you bring it because sometimes it’s not included on that W-2 or 1099," Mouton said. "I tell people bring multiple check stubs because sometimes it doesn’t work, and then they have cash tips, too, such as like Waffle House and Spark and DoorDash. Bring me a rough estimate of what you make with that because you can’t count cash every time. I know because I Spark from time to time. I keep a document of every tip I got in cash.”
People 65 and older may qualify for an additional deduction this year, while some workers could see certain tips or overtime excluded from federal income taxes. However, not all income automatically qualifies.
“The no tax on overtime has increased their returns like four, 500, some people even thousands," Mouton told KATC. "But what people don't understand is it's a third of the overtime."
Families are also urged to pay close attention to documentation related to the child tax credit. Missing or incorrect information can delay or reject a return.
“Make sure you have your child’s Social Security number, date of birth, and preferably a birth certificate,” Mouton said. “Also make sure the name matches how you usually file it, or it could get rejected.”
Tax experts say preparation is key to avoiding delays and errors during tax season.
“Have all your documents and be prompt so we can file your taxes swiftly and accurately without pausing,” Mouton said.
While tax season can be stressful and confusing, local experts like Mouton say the best advice is to ask questions early and seek guidance if you’re unsure how the new rules apply.
