Tax season is here, but there are ways to save on taxes. The standard deduction increased under the OBBBA for 2025. Most taxpayers benefit from the standard deduction, with only about 5 million more expected to itemize due to law changes.

The OBBBA introduced a new deduction for seniors in 2025, giving those 65 and older an extra $6,000 deduction. The deduction phases out for higher incomes above $75,000 for individuals and $150,000 for married filing jointly.

State and local tax deductions increased from $10,000 to $40,000 under the OBBBA, potentially making itemizing worthwhile for more people. Deductions apply to taxes withheld by employers and property taxes.

Starting in 2025, workers can deduct up to $25,000 in tips if they regularly receive them. Deductions also apply to overtime. Eligibility criteria are still being clarified.

For tax year 2026, charitable donations can be deducted even with the standard deduction, up to $1,000 per person. This change was part of the OBBBA to encourage charitable giving.

Consider contributing to a Health Savings Account (HSA) if you have a high-deductible health plan. Contributions are made with pre-tax dollars and reduce taxable income. There are limits and eligibility criteria to be aware of.

Contributing to retirement accounts like a 401(k) or IRA can provide tax benefits. The contribution limit for a 401(k) increased to $24,500 for 2026. IRA contributions can still be made until April 15, 2026, for the 2025 tax year.

Read more at Yahoo Finance: 7 tax-planning strategies that will save you money