Tax season is officially here and, with it, a whole slew of new tax rules.
The recently passed “One Big Beautiful Bill” Act introduced several notable provisions, along with permanent extensions of existing code in the 2017 Tax Cuts and Jobs Act (TCJA). But many taxpayers may not be aware of these nuances, and the new tax law is notoriously complex, experts say.
Before digging in to file your returns, here are key changes and deadlines to know for the 2025 tax year — and what to watch out for in 2026.
Non-itemizers get a welcome boost to their deduction. For 2025, the standard deduction is $15,750 for single filers and married couples filing separately, $31,500 for married couples filing jointly and $23,625 for heads of households, according to the IRS. These amounts will continue to increase with inflation annually — a provision now codified into law.
The IRS has already released standard deductions for tax year 2026: $16,100 (single filers and married couples filing separately); $32,200 for married couples filing jointly; and $24,150 for heads of households.
Meanwhile, the OBBB made permanent the existing seven federal income tax brackets from the TCJA, said Anthony Kure, senior portfolio manager with Johnson Investment Counsel in northeast Ohio.
Taxpayers ages 65 and older can now claim an additional $6,000 deduction per person on top of the standard deduction. This means married couples can deduct up to $12,000 annually from their annual tax bill.
"That’s a pretty big number, looking at $44,000 for a senior," said Joel Salas, a tax expert with JustAnswer and owner of Elevated Tax Strategies in San Antonio.
The benefit phases out starting at $150,000 for married couples filing jointly and $75,000 for single filers.
Kure noted this creates important planning opportunities for seniors.
"If you are looking at things like Roth conversions you’ve got to include this, because if you phase yourself out of this extra enhanced deduction, you're effectively making that tax on the Roth conversion way higher."
The OBBB temporarily increases the cap on state and local tax (SALT) deductions from $10,000 to $40,000 for 2025. However, the benefit phases out at a 30% rate for high earners making $500,000 a year. The SALT limit and income phaseout increases by 1% annually through 2029 before returning to $10,000 in 2030.
Francine J. Lipman, law professor at the University of Nevada, Las Vegas, called it a "gift to higher income folks in high-cost states."
"Most individuals who use the standard deduction amount, it's just not relevant," Lipman said, noting that only taxpayers who itemize get the benefit.
President Donald Trump campaigned heavily on the promise of no taxes on tips and overtime. However, the new tax bill doesn’t eliminate them entirely. Instead, it allows eligible workers to deduct up to $25,000 in tips and $12,500 for overtime income. And because these are deductions, you have to file your taxes to get the benefit, Lipman noted.
The tip deduction phases out starting at $150,000 for single filers and $300,000 for married couples filing jointly. Overtime follows the same phase-out structure, Salas said. There’s another major caveat: Married couples filing separately don’t qualify for either deduction.
"There definitely is a penalty for married filing separately across the board," Lipman said, noting this affects multiple provisions in the new tax bill.
For 2025, the child tax credit increased to $2,200 per qualifying child, up from $2,000 in 2024. The child tax credit helps families with qualifying children reduce their tax burden. The credit phases out for unmarried parents with an annual income over $200,000 ($400,000 for married couples).
But there's a catch: Both the child and the parent (or spouse if filing jointly) must have a Social Security number to claim the child tax credit. This new requirement in the OBBB could impact some immigrant and mixed-status families.
While it’s one of the most significant family tax credits, the lump-sum payment comes as a tax refund rather than periodic payments, making it harder for families to budget, Lipman explained.
Taxpayers can now deduct up to $10,000 in auto loan interest annually for vehicles purchased in 2025 or later. However, the vehicle must have been assembled in the U.S.
The deduction only applies to loans originated between 2025 and 2028, phasing out starting at $100,000 for single filers and $200,000 for married couples filing jointly, according to the IRS.
The benefit may seem substantial at a glance, but Kure notes that “$10,000 of interest a year on a car loan at 7% would be like a $142,000 car.” Most borrowers pay far less in annual interest and may not benefit as much from the deduction.
Federal clean energy tax credits for electric vehicles (EVs), charging equipment and certain home improvements were nixed in the new tax bill.
The expired EV credit — up to $7,500 for new electric vehicles and up to $4,000 for qualified pre-owned vehicles — ended Sept. 30, 2025. However, if you buy and install EV charging equipment, you may be eligible for a credit of up to $1,000 of those expenses through June 30, 2026, Kure said.
Meanwhile, the energy efficient home improvement credit and residential clean energy credit both expired Dec. 31, 2025.
Itemizers in 2026 will face a 0.5% adjusted gross income floor on charitable giving deductions. In other words, someone earning $200,000 in adjustable gross income who donates $10,000 to charities in 2026 cannot deduct the first $1,000 but can deduct the remaining $9,000, according to the Tax Foundation.
However, non-itemizers can now deduct up to $1,000 ($2,000 for married couples) in cash donations to public charities starting in 2026 — an above-the-line deduction requiring no itemization.
Student loan forgiveness under income-driven repayment plans used to be tax-free. However, the OBBB changed all that as of Jan. 1, 2026.
“If you do qualify for forgiveness starting now, you get taxed on that student loan forgiveness, which is a nasty tax surprise," Lipman said.
However, Public Service Loan Forgiveness (PSLF) and school fraud-related forgiveness remain tax-free.
Whether you’re hiring a professional or going the DIY route, here are important tax deadlines to add to your calendar.
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Quarterly estimated taxes: Due Jan. 15 (for Q4 2025), April 15 (for Q1 2026), June 15 (for Q2 2026) and Sept. 15 (for Q3 2026)
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Jan. 26, 2026: IRS begins accepting 2025 individual tax returns
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April 15, 2026: Tax filing deadline; also deadline for IRA/Roth IRA/HSA contributions for 2025 tax year
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Sept. 15, 2026: S-corporation and partnership extension deadline
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Oct. 15, 2026: Individual extension and C corporation extension deadline
Finally, many taxpayers will see larger-than-expected refunds for 2025, but it will be an outlier, Salas cautioned.
"We're going to see inflated refunds that's very temporary for this season," Salas said, adding that employers withheld at higher 2024 rates throughout most of 2025 before mid-year tax law changes took effect.
"Don't get used to a $6,000 refund," Salas said, noting that withholding tables will adjust for 2026.
Salas recommends that higher-income earners and business owners consult tax professionals to see if they’re maximizing the new tax rules to their benefit. Meanwhile, other taxpayers should carefully review their returns to understand which benefits actually apply to their situation — especially if they don’t plan to itemize.
