How do the recent tax changes affect my 2025 taxes?
Some of the new tax changes from the One Big Beautiful Bill Act include:
- Standard deduction: The Standard Deduction increased for all filing statuses.
- Tips deduction: Certain employees and self-employed taxpayers can deduct qualified tips.
- Overtime deduction: Qualified taxpayers can deduct some of their overtime income.
- Car loan interest deduction: Certain car buyers can deduct auto loan interest for new cars assembled in the US.
- Senior deduction: Seniors 65 and older can receive an additional deduction of up to $6,000.
- SALT deduction: The State and Local Tax Deduction (SALT) cap increased to $40,000.
- Adoption credit: The Adoption Credit is now partially refundable.
- Child tax credit: The Child Tax Credit increased to $2,200 per child.
- Child investment accounts: You can sign your children up for Child Investment Accounts.
