For the 2025 tax year, new deductions under the "One Big Beautiful Bill" (OBBB) include enhanced deductions for seniors (age 65+) and new breaks for tip income, overtime pay, and car loan interest, alongside increased standard deductions and a higher SALT cap. Key changes also involve permanent brackets, increased retirement limits (for 2026), and new "Trump accounts" for children, all designed to offer significant tax relief for multiple years, notes Charles Schwab and TurboTax.
Tax changes for 2025, largely driven by the "One Big Beautiful Bill" (OBBBA) Act, introduce significant deductions for seniors, tips, overtime, and auto loan interest, expand the Child Tax Credit, and raise the SALT deduction cap to $40,000, while making several 2017 Tax Cuts and Jobs Act provisions permanent, including the seven tax brackets. Key changes include a $2,200 Child Tax Credit, a $6,000 senior deduction, deductions for qualified tips and overtime, and a permanent standard deduction increase.
There will be a 2% increase to the rates of tax on dividend income, applicable UK-wide, however this will only be applied to the dividend ordinary rate (currently 8.75%) and the dividend upper rate (currently 33.75%). The additional rate of 39.35% will remain unchanged.
Some of the major tax changes effective from April 1, 2025, are revised tax slabs, rebate of up to Rs. 60,000, revised ITRU deadlines, calculation of partner's remuneration allowable as a deduction and revised TDS/TCS threshold limits. What is the Rebate available under section 87A?
UK taxpayers can earn £12,570 before paying income tax in tax year 2025/26. The rates for UK taxpayers (excluding Scotland) after taking account of the personal allowance are: 20% basic rate on taxable income up to £37,700. 40% higher rate on taxable income between £37,701 - £125,140.
For the 2025 tax year, the standard deductions increased significantly, with $15,750 for Single/Married Filing Separately, $31,500 for Married Filing Jointly/Qualifying Widow(er), and $23,625 for Head of Household, plus additional amounts for seniors or blind individuals, with new eligibility for a senior deduction up to $6,000 on top of the standard amount.
Total work-related expenses $300 or less
If the total amount you're claiming is $300 or less, you need records (such as calendar entries or a spreadsheet) to be able to show how you worked out your claims, but you don't need written evidence (such as receipts or invoices).
For the 2025 tax year, seniors (age 65+) get a new $6,000 bonus deduction (or $12,000 for couples) under the "One Big Beautiful Bill," stacked on top of the existing senior standard deduction, phasing out for incomes over $75k (single) or $150k (joint), available through 2028, and requires an SSN and joint filing if married.
For the 2025 tax year, the basic Standard Deduction is $15,750 for Single filers and married taxpayers who file separate returns (up from $14,600 for 2024), while married couples filing jointly and qualifying surviving spouses can deduct an amount twice that size at $31,500 (up from $29,200 for 2024).
20 Common Tax Deductions: Examples for Your Next Tax Return
Under the new income tax regime for 2025-26, any taxable income up to ₹12,00,000 attracts a full rebate of ₹60,000 (under Section 87A), resulting in a nil tax liability.
What does the IRS allow you to deduct (or “write off”) without receipts?
Here's a summary of key changes for the 2025 tax year. The seven federal tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) are now permanent. Standard deductions increased, plus a new “bonus” deduction for older adults. Child tax credit increased to $2,200 per qualifying child.
To avoid the 22% tax bracket (or any higher bracket), focus on reducing your taxable income through strategies like maxing out 401(k)s and HSAs, deferring bonuses, tax-loss harvesting, smart charitable giving, and strategic asset location, understanding that higher rates only apply to income within that bracket, not your entire income.
The extra $144 added to Social Security usually comes from the Medicare Part B Giveback benefit, offered by some Medicare Advantage (Part C) plans, which pays back some or all your Part B premium, showing up as extra money in your check if it's deducted from your Social Security. To qualify, you need Original Medicare (Parts A & B), pay your own Part B premium, live in a plan's service area, and enroll in a specific Medicare Advantage plan that offers this "rebate," with the amount varying by plan and location.