Important changes for tax year 2025

Here are a few important tax changes starting for the 2025 tax year that may help you this season:

1. No Tax on Tips (New Tip Deduction)
Workers in tipped occupations may qualify for a new federal deduction on a portion of their tips. This applies to tips received after July 1, 2025 income and will be claimed when you file your 2025 tax return in early 2026.

2. No Tax on Overtime (New Overtime Deduction)
A new deduction is available for qualifying overtime pay starting with 2025 income.
Married Filing Separately does not qualify for this deduction.

3. Social Security Relief for Seniors
A new deduction for seniors age 65+ begins in 2025, reducing taxable income for many retirees.

4. New Car Loan Interest Deduction
Starting in 2025, interest on new cars assembled in the United States may be deductible.+