The One Big Beautiful Bill Act (OBBB) is live for tax year 2025 (the returns you file in 2026). Net: it changes multiple “everybody-touch” areas—deductions, reporting, and credits—and the mistakes will cluster in the same places: people assuming (1) they still itemize the same way, (2) a missing tax form means “not taxable,” or (3) credits still exist after the cutoff date.
Below is the hub you can use to sanity-check your 2025 return before you file.
The two numbers to know first: Standard deduction got bigger (2025 and 2026)
If you’re deciding whether to itemize, start here. The IRS lists these OBBB standard deduction amounts:
Tax year 2025 (filed in 2026):
Single / Married filing separately: $15,750
Married filing jointly / Qualifying surviving spouse: $31,500
Head of household: $23,625
Tax year 2026 (filed in 2027):
Single / Married filing separately: $16,100
Married filing jointly / Qualifying surviving spouse: $32,200
Head of household: $24,150
Why this matters: A higher standard deduction means fewer people benefit from itemizing—so a bunch of “new” itemized-friendly rules only matter if you actually itemize.
The “10-minute checklist” (what to scan before you file)
1) SALT cap: higher for 2025 (but not for everyone)
OBBB increases the SALT deduction cap to $40,000 starting in 2025, with 1% increases in 2026–2029, and it phases down at higher incomes.
Action: Don’t assume this helps you. It only helps if you itemize, and the phase-down can blunt the benefit.
2) “No tax on tips” + “no tax on overtime”: these are deductions, with reporting strings attached
The IRS frames these as new deductions effective 2025–2028:
Tips: up to $25,000, with eligibility rules and phaseouts over $150k / $300k MAGI; requires W-2/1099/other reporting and occupation rules.
Overtime: up to $12,500 (or $25,000 joint) for the overtime “premium” portion; similar phaseouts and employer reporting requirements.
Action: If you’re an employer, this is a payroll/reporting systems issue. If you’re a worker, this is a “make sure the forms support the claim” issue.
Deeper post: “No Tax on Tips + No Tax on Overtime: What’s Deductible on the 2025 Return (and What Payroll Has to Prove)”
3) Car loan interest deduction (new, 2025–2028): VIN-on-the-return compliance
The IRS: up to $10,000/year of interest for a qualified personal-use vehicle loan, with income phaseouts over $100k / $200k MAGI and a VIN requirement on the return.
Action: If you bought/financed a new vehicle in 2025, gather your loan statements and VIN now—don’t make filing a scavenger hunt.
4) Senior deduction (2025–2028): $6,000 per eligible individual
The IRS: individuals 65+ can claim an additional $6,000 deduction (so $12,000 if both spouses qualify), with phaseouts over $75k / $150k MAGI.
Action: Confirm your software/preparer is stacking this correctly—it’s separate from the existing age-based standard deduction add-on.
5) Energy credit cutoffs: dates matter more than intentions
Treasury/IRS issued FAQs on accelerated terminations/phaseouts for multiple energy provisions under OBBB (including home energy credits and vehicle credits).
Action: If you’re claiming energy credits on a 2025 return, build a file with: purchase/placed-in-service dates, invoices, manufacturer docs, VINs (where relevant). This is documentation-heavy now.
6) 1099-K threshold reset: fewer forms, same taxable income
The IRS confirms OBBB reinstated the old 1099-K threshold: third-party settlement organizations generally don’t have to file unless gross payments exceed $20,000 AND transactions exceed 200.
Action: “No 1099-K” does not mean “not taxable.” Reconcile marketplace/app deposits to your books anyway.
7) Business interest (163(j)): bigger deductions for some leveraged businesses
IRS guidance: for tax years beginning after Dec 31, 2024, OBBB changes 163(j) by allowing an addback for depreciation, amortization, and depletion when computing adjusted taxable income (ATI).
Action: If you’re leveraged (or have large depreciation), your 2025 interest limitation model may be wrong. This is a provision/forecast issue, not just a return-prep issue.
One CA-specific callout (because people get burned here)
Federal change ≠ California change. California conformity is separate. Treat your CA return as its own model, especially around SALT planning and any new “no tax on…” deductions.