- Video shows interviews with a Certified Public Accountant explaining a key change for 2025 taxes and a waitress who's greatly affected by this change.
- Tax on tips and changes to the Child Tax Credit are some of the changes that could affect millions of Americans.
(The following is a transcription of the full broadcast story)
Tax season is underway.
Some tax filers won't notice anything different than previous years, but for others, changes in tax legislation can make a big difference.
Under the One Big Beautiful Bill, which was signed into law last summer, there are a number of tax changes in effect for 2025 taxes.
Among the key changes is no tax on tips.
Chris Hendricks, CPA, from Hawkins Ash CPAs says this specific change means those reporting their tips will be taxed on a lower income.
"Increasing your refund or reducing the amount owed... it's a result of a reduced tax liability as a result of not having to be taxed on up to $25,000 on tips," said Hendricks.
Taylor Ruiz is a waitress at Blackstone Family Restaurant. Tips are a huge part of her income.
"That's the whole reason we show up here," said Ruiz while chuckling. "It's not that hourly wage, it's for the tips."
As a part-time employee, saving money by not getting taxed on tips is a massive weight off her shoulders.
"I really need everything that I earn, so it's going to be huge to not have to pay Uncle Sam for something that I worked really hard for, and I barely get enough as it is," said Ruiz.
As a single mother of two young children, Taylor will also benefit from an extra $200 per child from the changed Child Tax Credit.
It won't dramatically change her life, but anything extra goes a long way.
"It's still something. I mean that's like when they need clothes in the springtime and new shoes for summertime it makes a difference," said Ruiz.
Tax filers can submit their taxes between now and the federal deadline on April 15th.
You can find more information on the tax filing changes from the One Big Beautiful Bill here.
