23 Cash Rebate Programs Hidden in the Tax Code

We believe that you probably feel you’re paying too much in taxes. 

According to recent polls, a record number of American voters think they pay too much. In fact, 63% of Americans believe their tax bill is too high. 

And most think that the government is more often the source of America’s troubles – not the solution to them. 

When it comes to the IRS, that’s definitely the case. Multiple studies show that millions of Americans overpay their taxes every year simply because they don’t understand the tax code. 

Well, here’s an opportunity to use the tax code to your advantage… 

In this report, we give you 23 ways to collect cash rebates – using programs, tax breaks and loopholes provided in the IRS tax code. 

You see… locked away in those tens of thousands of pages that make up our tax code are programs that can hand you thousands of dollars every year. Most Americans have no idea they exist. 

And thanks to the One Big Beautiful Bill (OBBB) – the major tax reform package signed into law on July 4, 2025 – many of the most valuable opportunities have now been made permanent, with several new deductions and credits added to the mix. 

This legislation makes permanent dozens of provisions from the 2017 Tax Cuts and Jobs Act (TCJA) and introduces fresh deductions that reward ordinary Americans – from workers earning tips and overtime to retirees and small business owners. 

Some of these updates are retroactive to 2025 (affecting the tax return you’ll file next year), while others go into effect in 2026 and beyond. 

Now, before we begin, this is not to be considered legal or tax advice. You should consult your CPA or attorney about your eligibility for these programs. (Pillar One Advisor Jack Cohen can help if you need to speak with someone.) 

And now, without further ado, here’s how YOU can collect on some of these programs. 

Program No. 1: You Can Deduct Thousands From Your Taxes Every Year – Now Permanently 

This provision – originally part of the 2017 TCJA – has now been made permanent under the One Big Beautiful Bill. 

Taxpayers can continue to claim an itemized deduction for state and local sales taxes instead of state and local income taxes. 

That means you can deduct the sales tax paid on virtually every purchase – from new clothes and furniture to hotel bills, meals out, or even a new car or boat. 

For many Americans, this deduction can be worth thousands of dollars each year. 

The maximum deduction for all state and local taxes – including property, income and sales taxes – has now been increased to $40,000 per household, up from $10,000, starting in tax year 2025. (It will revert to $10,000 in 2030.) 

This is a boon for itemizers in states that don’t collect income tax, such as Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. It can also benefit residents of Tennessee and New Hampshire, which tax only interest and dividend income. 

Even better, the IRS still allows you to use its Sales Tax Deduction Calculator to estimate your deduction – even if you don’t have every receipt. 

To calculate yours: 

1. Visit the IRS Sales Tax Deduction Calculator page. 

1. Enter your filing status, income, number of dependents and ZIP code. 

1. Include any major purchases for the year (vehicles, boats, home remodels, etc.). 

1. Record the final number provided by the calculator on Schedule A, Line 5. 

You can potentially claim this deduction retroactively for 2022-2024 by filing an amended return using Form 1040-X. 

This single deduction could increase your refund by hundreds or even thousands of dollars. Talk with your tax preparer and make sure they maximize it. 

Program No. 2: “The $82,000 Social Security Loophole” 

Nearly 90% of Americans over age 65 rely on Social Security for a major portion of their retirement income. Yet most pay far more tax on those benefits than they need to. 

The OBBB doesn’t change the base taxation rules for Social Security – but with lower brackets now made permanent and new deductions available, retirees have more room to manage income levels and avoid pushing benefits into the taxable range. 

Here’s how to use this to your advantage… 

If your combined income (adjusted gross income + nontaxable interest + half your Social Security) stays below: 

• $25,000 for singles or $32,000 for couples; your benefits are tax-free. 

• Up to $34,000 (singles) or $44,000 (couples), 50% of benefits are taxable. 

• Above that, up to 85% may be taxable. 

By strategically shifting withdrawals – for example, drawing from Roth IRAs instead of traditional IRAs, or selling investments in a year of lower income – you can keep your combined income below the next threshold. 

The savings can add up dramatically. Over a 20-year retirement, a couple could preserve as much as $82,000 in extra benefits by managing income sources wisely. 

Consider a Roth conversion if you’re still working and talk to your tax professional about sequencing your withdrawals to minimize taxable income in retirement. 

Program No. 3: “The $2,000 Catch-Up Cash Rebate” 

If you’re over age 50, the IRS rewards you for saving more for retirement. 

For 2025, you can contribute $23,000 to a 401(k) and an additional $7,500 in “catch-up” contributions – for a total of $30,500. 

Every extra dollar you contribute reduces your taxable income – potentially saving you hundreds to over $1,000 per year depending on your bracket. 

This “catch-up” benefit remains fully intact under the OBBB, with inflation adjustments going forward. 

If you’re self-employed, you can make similar catch-up contributions to a solo 401(k) or SEP IRA. 

These contributions can dramatically reduce your tax liability while boosting your retirement savings. 

Program No. 4: The $2,000 Saver’s Credit 

The OBBB keeps this program alive and adds enhancements. 

If you make contributions to a retirement plan – like an IRA or 401(k) – you can qualify for a tax credit of up to $2,000 ($4,000 for couples). 

This credit directly reduces the tax you owe, not just your taxable income. 

For 2025, the full 50% credit applies if your adjusted gross income is below $23,000 (single) or $46,000 (joint). Partial credits apply to higher levels, indexed for inflation. 

To claim it, file Form 8880 (“Credit for Qualified Retirement Savings Contributions”). 

This credit rewards those who save – and with the OBBB’s new Trump Accounts (tax-deferred investment accounts for children) and continued support for ABLE accounts, the message is clear: the government wants you to invest in your future. 

Program No. 5: Increase Your W-4 Withholding Allowances and Give Yourself an Instant Raise 

Most Americans still overpay their taxes each year – effectively lending the government money at zero interest. 

The fix is simple: adjust your W-4 to more accurately reflect your true tax liability. 

If you consistently receive a large refund, increase your number of allowances, so you keep more from each paycheck. The goal is to break even at year-end… no big refund, no big bill. 

The IRS’ updated W-4 form (revamped post-TCJA) now reflects your filing status, dependents and deductions more precisely. You can even use the IRS Withholding Estimator Tool to fine-tune your entries. 

With higher inflation and new deductions for overtime, tips, and seniors now available under the OBBB, adjusting your W-4 ensures you take advantage of every benefit this year, not next April. 

Program No. 6: The World’s Greatest “Tax Refund” – How to Essentially Pay Your Taxes With Gold (and Keep the Gold!) 

Precious metals still enjoy special treatment under IRS rules – and the OBBB does not change that. 

Because there’s no wash-sale rule for gold and silver, you can sell at a loss to offset gains elsewhere, then immediately buy it back without waiting 31 days. 

This allows you to lock in a deductible loss while maintaining your position in gold. 

It’s one of the few perfectly legal ways to “pay” your taxes with gold – because the paper loss can offset other gains, reducing your taxable income. 

For example, if you bought gold at $2,200 an ounce and it dips to $2,000, you can sell it, realize the $200 loss, and immediately repurchase. The $200 deduction could save you $60 or more in taxes – and you still own the same gold. 

Program No. 7: Rake In 29% Returns (Every 12 Months) With Practically No Risk! 

There are few “layups” in the investing world – but this is one of them. 

And it’s still alive and well under the new law. 

When you contribute to a traditional IRA, the money you invest is deductible – meaning you immediately reduce your taxable income. 

Let’s do the math again, using the current numbers. 

In 2025, you can contribute $6,500 (or $7,500 if you’re age 50 or older) to an IRA. 

If you’re in the 24% federal tax bracket and your state income tax rate is around 5%, that’s a combined 29% tax rate. 

Put in $6,500 and you instantly save $1,885 in taxes ($6,500 × 29%). 

That’s exactly like making a 29% risk-free return – and it’s available to virtually every working American. 

Even better, you can combine this benefit with the Saver’s Credit (see Program No. 4) for an additional tax break if your income qualifies. 

Under the OBBB, IRA contribution limits will continue to increase annually with inflation, ensuring this strategy only becomes more valuable over time. 

Program No. 8: How the Government Will Pay You $5,000 to Sit in on an Eight-Hour Course 

This strategy remains a powerful way for homebuyers to save thousands. 

Many states still offer down payment assistance and homebuyer education rebates through partnerships with federal housing programs. 

For example, in Maryland, the HomeCredit program provides a federal tax credit worth 25% of the value of your mortgage interest (up to $2,000 annually). 

Under the OBBB, mortgage insurance premiums are now permanently deductible as part of home mortgage interest starting in 2026 – another win for homeowners. 

Combined, these programs can reduce your effective borrowing cost by thousands of dollars over the life of your loan. 

To qualify, most programs require a brief educational course – often available online – that can take as little as eight hours. 

Check your state’s housing agency or HUD’s approved list of homebuyer programs. In some cases, the tax benefits can exceed $5,000 in the first year alone. 

Program No. 9: How to Eliminate Probate Fees and Estate Taxes With One Easy Strategy 

This one is all about getting your financial house in order – and thanks to the new tax law, it’s more valuable than ever. 

Under the OBBB, the estate and lifetime gift exemption has been increased to $15 million per individual ($30 million for couples) starting in 2026, and it’s now permanent. 

That means most Americans will never owe a dime in federal estate tax. 

However, probate fees can still eat away 3% to 8% of your assets – and state estate taxes can still apply. 

That’s where a professional help can make a huge difference. 

We recommend contacting Jack Cohen, CPA, of Campbell Jones Cohen CPAs – a former IRS veteran who now helps individuals and small businesses minimize taxes and protect assets. 

Jack and his team can help you: 

• Eliminate probate fees and estate taxes at death without buying life insurance or annuities 

• Protect assets from divorce and litigation without family limited partnerships 

• Create structures that legally minimize taxes year after year 

Contact:
Jack Cohen, CPA
Campbell Jones Cohen CPAs
Phone: 702.369.2504 

Email: jack@yournevadacpa.com
Web: yournevadacpa.com 

Program No. 10: Get Rich on Uncle Sam’s Tax-Free Offer 

Municipal bonds remain one of the best-kept secrets in America’s tax code – and the OBBB didn’t change that. 

These “munis” pay interest that is tax-free at the federal level – and often tax-free at the state and local levels too, if you live where they’re issued. 

At a time when the top tax bracket remains at 37%, a municipal bond yielding 4% is equivalent to earning more than 6% on a taxable investment. 

That’s a solid return – with the added safety of government backing. 

To maximize your benefits: 

• Focus on general obligation and utility revenue bonds, which have the strongest credit backing. 

• If you prefer simplicity, consider municipal bond funds from Vanguard, Fidelity, or T. Rowe Price. 

With today’s interest rates, municipal bonds can deliver reliable, tax-free income for 20 years or more, making them one of the smartest long-term holdings for conservative investors. 

Program No. 11: Don’t Include This Distribution in Your Income 

This one’s for retirees who are charitably inclined. 

If you’re age 70½ or older, you can make Qualified Charitable Distributions (QCDs) directly from your IRA – up to $100,000 per year per person – to IRS-approved charities. 

The OBBB preserves this rule and indexes the $100,000 limit for inflation beginning in 2026. 

These QCDs don’t count as taxable income, but they do satisfy your required minimum distributions (RMDs) – effectively lowering your AGI and possibly reducing taxes on Social Security and Medicare premiums. 

To take advantage, your IRA custodian must send the funds directly to the charity. You can’t withdraw the money first. 

QCDs remain one of the most efficient ways for retirees to reduce taxes while supporting causes they care about. 

Program No. 12: A Simple Change Anyone Can Make to Add More Than $5,000 to Their Social Security Payouts 

The math behind this strategy hasn’t changed – but with permanent lower tax brackets under the OBBB, the payoff is even more attractive. 

The average Social Security recipient collects around $22,000 a year, or roughly $1,850 per month. 

By simply delaying benefits until age 70, your monthly payout increases by about 8% per year after full retirement age – adding up to roughly $5,000 or more annually once you begin collecting. 

It’s one of the simplest, most guaranteed “raises” available in retirement. 

Example: 

• Claiming at 62 = 25% reduction in benefits. 

• Waiting until 70 = 32% increase. 

The longer you wait, the more you collect – and the OBBB ensures these benefits remain fully backed by lower tax brackets, meaning you keep more of what you earn. 

Program No. 13: A Trip to Bermuda 

Yes – you can still make paradise tax-deductible. 

Under IRS rules, business conventions and meetings are considered “ordinary and necessary” expenses… and therefore deductible – as long as it is in the U.S. or a U.S. possession. 

That means ANY business convention held in Bermuda can be written off without even showing there was a special reason to hold your business meeting in paradise. And Bermuda’s not the only place. Barbados, Costa Rica, Dominica, the Dominican Republic, Grenada, Guyana, Honduras, Jamaica, St. Lucia, Trinidad and Tobago, Canada, Mexico, and all U.S. possessions receive this special tax treatment. 

The OBBB doesn’t change these rules – but the increased standard deduction and permanent lower brackets make itemizing more strategic. 

If you can bunch expenses into one year, you may be able to exceed the standard deduction and deduct that tropical “business meeting.” 

Of course, documentation is key. Keep a clear agenda, attendee list, and business-related receipts. The IRS has accepted these deductions for decades – when properly substantiated. 

Program No. 14: A Beautiful Swimming Pool 

Sometimes, necessity really is the mother of deduction. 

This famous example remains valid… 

A man diagnosed with emphysema built a swimming pool at his doctor’s recommendation for therapeutic exercise. 

He deducted the cost of construction, heating, cleaning and chemicals as medical expenses – and the IRS allowed it. 

Under current law, medical expenses are deductible to the extent they exceed 7.5% of your adjusted gross income (AGI). 

The OBBB doesn’t alter this threshold, so the rule still applies in 2025. 

If your doctor recommends an improvement to your home for medical reasons – such as a pool, elevator, or air filtration system – document it thoroughly. 

The IRS may allow the cost minus any increase in your home’s value as a medical deduction. 

When health meets necessity, creative thinking can turn a personal cost into a legitimate medical write-off. 

Program No. 15: College Tuition Credit 

The OBBB leaves existing education credits intact – and expands the usefulness of 529 plans (see Program No. 17). 

For tuition expenses, you can still claim up to $2,500 per eligible student through the American Opportunity Credit. 

To qualify, you must pay for tuition, required fees, and course materials for yourself, your spouse, or a dependent enrolled at least half time in a degree program. 

Income limits apply: 

• The credit phases out for single filers with AGI above $90,000, or $180,000 for joint filers (indexed for inflation). 

If you’re beyond the first four years of higher education, you may still qualify for the Lifetime Learning Credit – worth up to $2,000 per return, with no limit on the number of years you can claim it. 

Always coordinate these credits with any 529 withdrawals to avoid “double dipping” on the same expenses. 

Program No. 16: Tax-Free Treatment for Forgiven Principal Residence Mortgage Debt Extended Through 2025 

The OBBB keeps this valuable protection alive through December 31, 2025. 

If part of your home mortgage debt is forgiven – for example, in a short sale, loan modification, or foreclosure – that amount is normally treated as taxable income. 

However, qualified principal residence indebtedness remains excluded from taxable income through the end of 2025. 

That means if you had mortgage debt canceled in 2023-2025, you likely won’t owe tax on the forgiven amount. 

This provision covers debt used to buy, build, or substantially improve your primary residence. 

To claim it, file Form 982 (Reduction of Tax Attributes Due to Discharge of Indebtedness) with your tax return. 

If your discharge qualifies, this exclusion can save you thousands of dollars and prevent a painful surprise come tax time. 

Program No. 17: Energy-Efficient Home Improvement Credits Ending After 2025 

If you’ve been planning upgrades like new insulation, windows, or solar panels – 2025 is the year to act. 

The One Big Beautiful Bill phases out many of the Inflation Reduction Act’s energy credits after December 31, 2025. 

That includes: 

• The Energy Efficient Home Improvement Credit 

• The Residential Clean Energy Credit (solar, geothermal, wind) 

• Credits for energy-efficient home construction and appliances 

If you install qualifying upgrades in 2025, you can still claim up to 30% of the total cost. 

Starting in 2026, most of these credits are repealed or significantly reduced. 

So take advantage before these benefits disappear. Even partial upgrades done this year may qualify if placed in service before December 31. 

Program No. 18: Get an Additional $762 Back From Social Security 

This one is a simple arithmetic win. 

If you worked for two or more employers in the same year, you may have overpaid Social Security taxes – and the IRS will pay you back. 

For 2025, the maximum wage base subject to Social Security tax is $168,600. The tax rate is 6.2% for employees. 

That means the maximum withheld from your pay for Social Security should be $10,453.20. 

If your total withheld exceeds that (say, you earned $90,000 at one job and $100,000 at another), you can claim a credit for the excess on your return. 

Here’s an example: If you paid $11,200 total in Social Security tax, the difference ($746.80) is your refund. 

Claim it on Form 1040, Schedule 3, Line 11. 

This rule remains unchanged under the OBBB – and it’s one of the easiest “cash rebates” many taxpayers miss. 

Program No. 19: Slash Investment Fees and Deduct the Savings 

Although the OBBB made most miscellaneous itemized deductions permanently disallowed, there’s still a powerful workaround that savvy investors use. 

You can’t deduct investment management fees directly anymore – but you can hold fee-based investments in a tax-advantaged account like an IRA or 401(k), where fees are paid with pre-tax dollars. 

Here’s how it works: 

• If you pay advisory fees from within your IRA, they’re effectively paid with pre-tax funds. 

• That’s equivalent to receiving a tax deduction equal to your marginal tax rate — without needing to itemize. 

For high-income investors, that’s a 30%-plus benefit. 

And if you’re self-employed, you can still deduct investment advisory and accounting fees related to your business or retirement plan on Schedule C. 

Talk to your advisor or CPA about structuring accounts correctly to maximize this under the current law. 

Program No. 20: Deduct the Cost of New Business Equipment 

The OBBB permanently extended one of the most generous tax provisions ever created: 100% bonus depreciation and expanded Section 179 expensing. 

Here’s what that means: 

• Bonus depreciation remains at 100% for new or used equipment placed in service before January 1, 2027. 

• The Section 179 expensing limit has been increased to $2.5 million per year, with a phaseout beginning at $4 million in purchases. 

This covers equipment, computers, software, vehicles, and certain property improvements. 

For example, if you purchase $100,000 worth of business equipment this year, you can deduct the entire amount immediately instead of depreciating it over several years. 

That’s real cash flow savings – and a powerful reason for small business owners to invest in growth before year-end. 

Program No. 21: Collect a $6,000 Senior Deduction 

One of the most popular new provisions in the One Big Beautiful Bill is the Senior Deduction. 

Starting with the 2025 tax year, taxpayers age 65 and older with income under $75,000 (single) or $150,000 (married filing jointly) can claim an additional above-the-line deduction of $6,000. 

This deduction applies even if you don’t itemize – it comes in addition to the standard deduction ($31,500 for joint filers; $15,750 for single filers in 2025). 

This means millions of retirees will see a meaningful reduction in taxable income without any extra paperwork or complex calculations. 

If you or your spouse qualify, make sure your tax preparer includes this new deduction on your 2025 return. 

Program No. 22: Deduct Up to $25,000 in Tips and $12,500 in Overtime 

The OBBB introduced two brand-new above-the-line deductions designed to help working Americans keep more of what they earn: 

• Up to $25,000 for tips earned in service-related jobs 

• Up to $12,500 for overtime pay 

Both deductions begin with the 2025 tax year and are phased out for individuals earning more than $150,000 or couples earning more than $300,000. 

These deductions apply regardless of whether you itemize – meaning millions of Americans will qualify automatically. 

If you work in hospitality, retail, healthcare, manufacturing, or any industry with regular overtime or tips, this change could save you thousands each year. 

Make sure your W-2 or pay statements reflect all eligible income and talk to your tax preparer about claiming these deductions. 

Program No. 23: Deduct Up to $10,000 of Car Loan Interest on American-Made Vehicles 

Another brand-new provision under the OBBB rewards consumers who support U.S. manufacturing. 

Beginning in 2025, taxpayers can deduct up to $10,000 in car loan interest – but only on vehicles assembled in the United States. 

This deduction is above the line, meaning you can take it even if you don’t itemize. 

To qualify, your vehicle must: 

• Be assembled in the U.S. 

• Be purchased with a qualified auto loan 

• Be used primarily for personal, family, or commuting purposes 

This new rule effectively allows millions of drivers to lower their taxable income while supporting American jobs and industry. 

It’s an entirely new kind of “cash rebate” – one that pays you for buying American. 

The Bottom Line 

We’ve just covered 23 powerful programs – most renewed or expanded by the One Big Beautiful Bill of 2025 – that can help you recover thousands of dollars in legitimate tax savings. 

From permanent TCJA-era deductions to brand-new credits for tips, overtime, and seniors, these opportunities show that the real winners are those who understand the tax code and use it to their advantage. 

Remember: Every tax dollar you save is a dollar that stays in your pocket – working for you, compounding for your family, and strengthening your financial freedom. 

And while these programs are all part of the IRS code, your personal circumstances matter.
For tailored advice or help implementing these strategies, we continue to recommend our trusted tax expert: 

Jack Cohen, CPA
Campbell Jones Cohen CPAs
Phone: 702.369.2504
Email: jack@yournevadacpa.com
Web: yournevadacpa.com 

Jack Cohen is a former IRS agent and veteran CPA who specializes in advanced tax strategies for individuals, retirees, and small business owners. 

Disclaimer 

This report is intended for educational purposes only. The Oxford Club and its editors are not engaged in rendering tax, accounting, or legal advice. Individual situations vary. 

Before taking action on any of the strategies discussed in this report, consult your CPA, tax attorney, or other qualified professional.