Tax Tips July 2025: Will You Maximize Your Refund or Miss Out on New Deductions?

What’s New in Tax Law for 2025?

The 2025 tax season brings several major changes thanks to the newly passed One Big Beautiful Bill and IRS updates:

• Standard Deduction Increase: Now $15,750 for single filers and $23,625 for joint returns, with an additional $6,000 for taxpayers over 65

• Tip Income Deduction: Workers in tip-based jobs can deduct up to $25,000/year, provided tips are reported properly

• Overtime Pay Deduction: Employees can deduct up to $12,500/year for federally mandated overtime

• Vehicle Loan Interest Deduction: Up to $10,000/year if the vehicle is assembled in the U.S. and used personally

• Section 1202 Stock Gains: Entrepreneurs can now exclude up to $15 million in gains from qualified small business stock

  These changes are designed to ease the tax burden on working Americans, small business owners, and retirees.

IRS Tax Tips You Shouldn’t Ignore This Summer

The IRS has released a series of Tax Tips for July 2025, including:

• Disaster Relief Filing Extensions: If you’ve been affected by floods, wildfires, or hurricanes, you may qualify for extended deadlines and deductions

• ABLE Accounts for Disability Expenses: Families can use Achieving a Better Life Experience (ABLE) accounts to save tax-free for disability-related costs

• Childcare Tax Credit for Employers: Businesses offering childcare can claim up to $150,000 in credits

• Hobby vs. Business Classification: Know the difference—only businesses can deduct losses

• Newlywed Tax Checklist: Update your filing status, name, and address to avoid delays

  These tips are part of the IRS’s effort to educate taxpayers year-round, not just during filing season.

Smart Deductions to Maximize Your 2025 Refund

Here are some lesser-known deductions that could save you thousands:

• Homeownership Deductions: Mortgage interest, property taxes, and energy-efficient upgrades may qualify

• Student Loan Interest: Up to $2,500/year, even if you’re not itemizing.

• Medical Expenses: If they exceed 7.5% of your AGI, you can deduct them.

• Charitable Contributions: Cash donations, mileage for volunteering, and even donated goods count.

• Self-Employment Expenses: Internet, phone, home office, and business travel are deductible.

Make sure to track receipts and use IRS-approved forms to claim these deductions properly.

Tax Planning for Families, Homeowners, and Gig Workers

🔹 Families:

• Claim the Child Tax Credit and Earned Income Tax Credit.

• Use 529 plans for tax-free education savings.

🔹 Homeowners:

• Consider refinancing to maximize mortgage interest deductions.

• Install solar panels or energy-efficient appliances for credits.

🔹 Gig Workers:

• Use Schedule C to report income and expenses.

• Deduct mileage, supplies, and even part of your rent if you work from home.

Planning ahead can help you reduce taxable income and avoid surprises next April.

Why This Is Trending Right Now

Tax tips are trending in July 2025 due to:

• Mid-year tax law changes from the One Big Beautiful Bill

• IRS summer updates on disaster relief and new credits

• Google Trends shows a 600% spike in searches for “tax tips,” “IRS deductions,” and “2025 tax changes” in the past 48 hours

• Social media buzz around tip and overtime deductions, especially among service workers

With inflation and economic uncertainty still looming, Americans are more focused than ever on saving money through smart tax planning.

FAQs About Tax Tips and IRS Changes

Q1: What’s the new standard deduction for 2025?
$15,750 for single filers and $23,625 for joint returns

Q2: Can I deduct tip income?
Yes, up to $25,000/year if properly reported and documented

Q3: What’s the deadline for 2025 tax filing?
April 15, 2026, unless extended due to disaster relief.

Q4: Are there new deductions for vehicle loans?
Yes, up to $10,000/year if the vehicle meets IRS criteria

Q5: How do I know if I qualify for disaster relief?
Check IRS.gov for county-specific updates and eligibility

Final Thoughts: Plan Smart, File Confidently

Whether you're a homeowner, gig worker, retiree, or newlywed, the 2025 tax landscape offers new opportunities to save—but only if you stay informed. With IRS updates, new deductions, and strategic planning, you can make the most of your return and avoid costly mistakes.

Bookmark this guide, consult a tax professional, and start preparing now. Because when it comes to taxes, knowledge is money.