Tax season can feel overwhelming, but understanding key updates can help taxpayers file with more confidence and make smarter financial decisions.

Dr. Mollie Adams, assistant professor in the Pendleton Family School of Accountancy at Missouri State University, encourages taxpayers to pay close attention to changes that may affect their returns this year.

“We often view tax as this big, scary thing. But most people won’t encounter those really complicated situations,” Adams said.

New deductions and tax law changes

Some of the biggest changes this year come from the “One Big Beautiful Bill Act” signed into law July 4, 2025. The act extends several individual tax provisions from the 2017 Tax Cuts and Jobs Act and adds new deductions that may benefit workers, students and early-career professionals. These include deductions for qualified tips, overtime pay and interest on certain new auto loans.

Eligible taxpayers may deduct up to $12,500 in qualified overtime pay or $25,000 for married couples filing jointly. They may also deduct up to $10,000 in interest on auto loans for new vehicles purchased on or after Jan. 1, 2025, with final assembly in the United States.

In addition, the act maintains the higher standard deduction created by the 2017 tax overhaul. For 2025, the standard deduction is $15,750 for single filers or those married filing separately, $23,625 for heads of household and $31,500 for married couples filing jointly.

In terms of child-related benefits, the act created “Trump accounts,” a new tax-advantaged savings option for children under 18. Accounts set up for eligible U.S. citizen children born between 2025 and 2028 will receive a one-time $1,000 federal contribution.

Family members and others can add private contributions up to an aggregate amount of $5,000 per year (starting July 4, 2026). For this tax season, parents can elect or open the account when filing their 2025 return to trigger the $1,000 deposit, though it does not reduce taxable income or increase refunds.

Watch for common mistakes

Keep in mind even a simple return can include costly mistakes. Common ones are failing to report all taxable income or overlooking deductions and credits that could lower your tax bill.

Some types of income are easy to overlook. Gambling winnings, for example, must be reported as income. At the same time, not every expense is deductible, and some deductions only apply in specific situations.

This may be especially important for first-time filers, part-time workers and students, who may not be aware newer deductions or lesser-known rules could affect their return.

“Individuals who realize they have made a mistake on their return can file an amended return to correct it,” Adams said.

Know when professional help makes sense

For some taxpayers, filing independently may be enough. But professional help can be useful when finances become more complex, such as after starting a business, making investments outside of tax deferred retirement accounts or experiencing major life changes like marriage, the birth of a child or retirement. In these cases, guidance can reduce confusion and prevent costly errors.

“Individuals should consult a tax professional any time that using one will bring them peace of mind. Look for a licensed CPA when choosing a preparer,” Adams said.

Focus on good habits

Tax planning does not begin and end during filing season. Many financial decisions made during the year can affect what you owe later.

That’s why basic habits matter. Keeping records organized, checking paycheck withholding and setting aside money when taxes are not automatically withheld can make filing easier and less stressful. These habits can also support long-term goals, such as buying a home, saving for education or preparing for retirement.

“Financial literacy remains important for everyone, regardless of age, life stage or career,” Adams said. “Everyone can benefit from careful management of their own finances.”

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