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New Member
posted Jan 26, 2026 1:27:07 PM

Tax Return Lower But Information The Same

I noticed that after finalizing my tax return that it was $1,200 lower than last years even though Filing Status, Total Income, Taxes Withheld, and Federal Deductions were exactly the same. No major life events or anything different from 2024 to 2025 yet a dramatic drop. What gives?

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1 Replies
Employee Tax Expert
Jan 26, 2026 1:50:21 PM

Congress has made multiple changes to the tax code in 2025

 

  • Tips, Overtime, and car loans are deductible.
    • These show up on line 13b of your 1040 tax return
  • There's a $6,000 deduction for individuals 65 and older.
  • The standard deduction has been increased.
  • Tax brackets have been increased.
  • In addition, taxes were withheld based on the previous tax code.