More Breaks, More Paperwork: Tax Filing Time Rises Under New Law!

A new report from Yale’s Budget Lab (https://bit.ly/3HaEkQu  ) claims that the “no tax on” provisions in the One Big Beautiful Bill Act will, for many people, increase the time required to prepare tax returns. This affects those who are no longer required to pay tax on a limited amount of tips, overtime and auto loan interest. The report states that taxpayers in the lowest earning quintile can expect to spend 1.8 hours more on tax administrative tasks. Higher-income taxpayers who deduct state and local taxes also face greater filing burdens, according to the report. Due to the complexity of the provisions, more of these taxpayers will be required to engage in extensive recordkeeping.