The much-touted new tax breaks for tips, overtime, seniors and car loan interest have a lot of income tax filers expecting a big bump in their refunds this year – or a big cut in their tax bill.
That certainly may be the result for some people. But for others, the new deductions may offer a smaller-than-expected break. Or none.
Why? Complicated details and eligibility rules reduce the relief taxpayers may have assumed they’ll get given the misleading promotion of the new tax breaks as “no tax on … .” And that same misleading language is repeated on Schedule 1-A, the form you must fill