Tax season might be months away, but thanks to the *One Big Beautiful Bill* (OBBB) now law (signed July 4, 2025), there are some fresh items your “tax prep checklist” should include. Here’s what to pull together *now* so we’re not scrambling later:
New or Changed Things to Watch For (2025)
1. Senior (65+) Bonus Deduction
For 2025 through 2028, if you’re age 65 or older, there’s an *additional* deduction of up to **$6,000** (per eligible person) even if you don’t itemize.
— This is in *addition* to the existing extra standard deduction for age/blindness.
2. Car Loan Interest Deduction (Limited, and New)
A brand-new “above-the-line” deduction allows you to deduct up to **$10,000** in interest on *qualified* car loans (personal use, U.S.-assembled vehicles) for 2025 through 2028.
— But beware: it phases out for higher incomes (single > ~$100,000, joint > ~$200,000)
— Also, “qualified” means the vehicle must meet certain rules (assembled in the U.S., not a used or leased vehicle, etc.)
3. Charitable Donations for Non-Itemizers
If you *don’t* itemize, you can now deduct up to **$1,000 (single)** or **$2,000 (married filing jointly)** in cash charitable contributions as an “above-the-line” deduction for 2025–2028. ([Duane Morris][2])
— If you *do* itemize, there’s now a rule that your total itemized charitable deductions are reduced by 0.5% of your AGI (this is a new limitation)
4. State & Local Taxes (SALT) Cap Raised (Temporarily)
The SALT deduction cap (which was stuck at $10,000) has now been bumped to as high as **$40,000** (or $20,000 for married filing separately) — though phased down for very high incomes (modified AGI > ~$500,000)
— If you live in a high-tax state (state income, property, etc.), this change could matter a lot.
5. No Tax on Tips & Overtime (New Exclusions / Deductions)
The new law includes provisions where certain tip income and overtime pay get favorable tax treatment:
— “No tax on tips” is now law, and is integrated into OBBB.
— There’s also a deduction for qualified overtime income (up to $12,500) in 2025–2028.
6. Tweak the Standard Deductions & Make TCJA Provisions Permanent
Many of the favorable TCJA tax provisions that were supposed to expire are now made permanent (for example, the seven marginal tax rates).
Also, the standard deduction amounts are increased for 2025:
* $15,750 for single / married filing separately
* $31,500 for married filing jointly
* $23,625 for head of household
7. Restoration of Some Deductions & Changes to Itemized Deductions
A few deductions that had expired or been limited before are restored or made permanent:
* Mortgage insurance premiums deduction is back and made permanent.
* The overall limitation on itemized deductions (the old “peel back” or “phase-down”) is reintroduced (i.e. itemized deductions will be reduced for high-income taxpayers).
* Some miscellaneous itemized deductions (like union dues, unreimbursed employee expenses) are still NOT allowed.
What You Should Do (Now) to Be Ready
Here’s what I’d ask clients to dig up or track *now* (so we can plug them into the new rules):
* If you’re 65 or older (or will be by year-end): your birthdate, any income thresholds that may phase out the bonus deduction
* Documentation for **qualifying charitable contributions** (especially cash donations)
* Auto loan details (date, principal, interest paid, vehicle make/model, where assembled)
* State and local tax payments (property tax, state income tax, etc.)
* Records of tips, overtime income (if applicable)
* Mortgage insurance premium statements
* Any other deductions you were accustomed to (so we can see what survived or was cut)
* If you live in a high-tax state, property tax, state income tax, etc. — this SALT bump might help you
* If you have higher income near thresholds (e.g. around $100k, $150k, $500k) — these phaseouts matter
Tax changes can be complicated and scary but you have your trusted CPA to help you navigate the 1016 page OBBA!
