About The 2025 OB3 Tax Bill:

The One Big Beautiful Bill Act (OBBBA), signed into law by Congress this year makes many of the 2017 Tax Cuts and Jobs Act provisions permanent while also introducing new tax deductions, savings accounts, and modifications to social programs.

Key OBBBA 2025 Tax Provisions That May Affect Your Situation:

Deduction for Seniors

Starting in 2025, individuals age 65 or older can claim an additional $6,000 deduction, or $12,000 for

married couples if both spouses qualify. This deduction is available to all filers, whether itemizing or using

the standard deduction. It begins to phase out at $75,000 MAGI (single) and $150,000 (MFJ).

No Tax on Tips

Employees and eligible self-employed workers may deduct up to $25,000 in qualified tip income received

from customers. This applies to tips reported on W-2s, 1099s, or Form 4137 and is available from

2025–2028. The deduction phases out at $150,000 MAGI for single filers and $300,000 for joint filers, and

does not apply to certain service business owners (SSTBs under §199A).

No Tax on Overtime

Workers can deduct up to $12,500 in qualified overtime pay ($25,000 for joint filers) received above regular

hourly wages. This applies to overtime reported on W-2 or 1099 forms and covers the years 2025–2028.

The deduction phases out at $150,000 MAGI (single) or $300,000 (MFJ).

No Tax on Car Loan Interest

Interest paid on loans for new, personal-use vehicles (not used or business vehicles) may be deducted up to

$10,000 per year if the loan originated after December 31, 2024. Vehicles must be assembled in the U.S.

and secured by a lien. Deduction phases out at $100,000 MAGI (single) and $200,000 (MFJ), and VIN must

be reported on the tax return.

Expiring Clean Vehicle Credits

The $7,500 New Clean Vehicle Credit, $4,000 Used Clean Vehicle Credit, and Commercial Clean Vehicle

Credit expired September 30, 2025. Only vehicles purchased and placed in service by that date will qualify.

Expiring Home Energy Credits

Credits for home energy improvements, including the Energy Efficient Home Improvement Credit (25C) and

the Residential Clean Energy Credit (25D), expired December 31, 2025. These cover qualified expenses for

windows, insulation, HVAC systems, solar panels, and more. Projects must be completed and placed in

service before year-end 2025 to qualify.

Download our annual 2025 Letter & Questionnaire HERE