LANSING, MI — Taxpayers could see significantly larger refunds this year thanks to changes in the recently enacted tax legislation, commonly known as the Big Beautiful Bill.
I spoke with tax expert Diana Peagler in Lansing to break down the key changes that could put more money back in your pocket when you file your 2025 tax return.
One of the most significant changes affects families with children. The Child Tax Credit is increasing by $200, bringing the total to $2,200 per qualifying child.
"It's going to be $2,200. The important thing for people to remember is that the year in which the child turns 17, they are classified differently. They become an other dependent which is $500," Peagler said.
Homeowners also stand to benefit from substantial changes to the state and local tax deduction, known as SALT. This change particularly impacts middle-income families with high property taxes.
"It's for people typically in the middle income bracket who have high real estate taxes. The current deduction on that is $10,000," Peagler said.
That deduction is seeing a dramatic increase for the 2025 tax year.
"What they've done for 2025 -- but once again it will sunset in 2029. But for married filing joint you'll be able to deduct up to $40,000," Peagler said.
Peagler emphasized that many of these new tax provisions will expire in the coming years, making it crucial for taxpayers to understand and maximize these benefits while they're available.
The Internal Revenue Service will begin accepting tax returns on January 26.
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