- 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.
How do the recent tax changes affect my 2025 taxes?
Some of the new tax changes from the One Big Beautiful Bill Act include:
