economy
How tax filing has changed due to Trump's One Big Beautiful Bill Act
President Donald Trump’s One Big Beautiful Bill Act will have some significant effects on this year’s tax filing season, with provisions such as “no tax on tips” and “no tax on overtime” allowing people to claim more deductions.
TL;DR
- The One Big Beautiful Bill Act allows no taxes on cash tips up to $25,000 for single filers and $50,000 for joint filers, subject to income limitations.
- Deductions of up to $12,500 for single filers and $25,000 for joint filers are available for overtime income.
- The act provides deductions up to $10,000 for auto loan interest on U.S.-produced vehicles purchased between December 31, 2024, and January 1, 2029.
- Standard deductions have been increased to $15,750 for single taxpayers and $31,500 for joint filers.
- The child tax credit has been raised by $200 to $2,200, and the adoption credit is now partially refundable up to $5,000.
- Individuals aged 65 and older can claim a deduction of up to $6,000 until January 1, 2029.