Tax season myths vs. facts: Here's what to know

Summary

Sharon Epperson of CNBC joined Squawk Box to explain what taxpayers should know as the IRS begins accepting 2025 returns. She clarified that the new no-tax-on-tips, no-tax-on-overtime, and no-tax-on-Social-Security provisions are limited deductions with income phaseouts, not full tax eliminations. She also said average refunds may be $300 to $1,000 higher this season because withholding tables were not updated when the tax breaks took effect. The segment ended with tax-planning reminders and no specific securities or investment recommendations.

• IRS starts accepting 2025 income tax returns on Monday.
• New tax breaks from Trump's spending bill include deductions for tips, overtime premium pay, and seniors.
• The tax breaks are capped and phase out at higher income levels.
• State and local taxes may still apply to affected income.
• The Tax Foundation expects refunds $300 to $1,000 higher on average.
• Bigger refunds stem from unchanged withholding tables after July tax changes.
• The segment discusses taxpayer planning and does not name investment securities or trade ideas.