The One Big Beautiful Bill was signed into law on July 4, 2025.  Here are some of the provisions affecting your taxes:

NO TAX ON TIPS: Employees in traditionally tipped jobs can exclude up to $25,000.00 in tips from federal income tax through 2028, subject to income limits and specific eligibility requirements (expires in 2028)

STATE AND LOCAL TAX DEDUCTION:  The Cap on SALT deduction on Schedule A (itemized deductions) goes from $10,000.00 to $40,000.00 through 2029, then drops back in 2030.

CAR LOAN INTEREST:  Taxpayers are able to deduct interest on car loans.  In order to qualify, the vehicles final assembly has to be in the US after 2024 up to $10,000.00 per year.  There are income limitations, and it will expire at the end of 2028.

NO TAX ON OVERTIME PAY:  Up to 12,500.00 ($25,000.00 MFJ) available for 2025 – 2028.  This is only for the overtime premium – the regular pay is still taxed.  

TRUMP ACCOUNTS:  New child savings accounts are available for children born between 2025 – 2028 and allow for additional yearly contributions subject to limits and rules.

ADDITIONAL SENIOR DEDUCTION:  The new Senior Deduction is for taxpayers aged 65 and older.  The deduction is an additional 6,000.00.  Social Security Income is still taxable, this deduction was to help offset some of the tax on Social Security.

ABOVE THE LINE CHARITABLE CONTRIBUTIONS:  You can now deduct up to $2,000.00 above the line in Charitable Contributions if you are unable to itemize. Limits and rules applly.