The "new income tax bill" for 2025 refers to the One, Big, Beautiful Bill Act (OBBBA), which introduced significant changes like a new $6,000 deduction for seniors (age 65+), increased standard deductions (e.g., to $15,750 for single filers), a higher SALT cap ($40k for some), deductions for car loan interest, tips, and overtime pay, and changes to 1099-K reporting thresholds, aiming to reduce taxes by adding deductions and expanding breaks, though some credits were repealed.
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?
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.
The $6,000 senior deduction is in effect from tax years 2025 through 2028. It applies to taxpayers 65 and over, regardless of whether they itemize their tax returns or take the standard deduction.
Tens of millions of taxpayers are expected to receive larger refunds due to the 2025 One Big Beautiful Bill Act (OBBB), which increased the standard deduction and the Child Tax Credit (CTC).
The IRS estimated that 1.1 million Americans were missing out on their 2021 income tax refunds because they hadn't filed their taxes. Checks, up to $1,400, will be mailed via paper check or direct deposited into the bank account provided with a 2023 return.
If they have AGI above their respective thresholds, they can deduct the following percentages of federally taxable Social Security benefits until they are fully exempted for all income levels in 2026: 2024: 35% exempt. 2025: 65% exempt. 2026: 100% exempt.
"In addition to the existing standard deduction, filers who are age 65 and older can qualify for a new senior bonus deduction of up to $6,000 for individuals and $12,000 for married couples," said Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer.
April 10, 2025, the House adopted the Senate's amended version of the budget resolution, which allows $5.3 trillion in deficit-financed tax cuts (the combination of $3.8 trillion of tax cuts assumed to be “costless” under a current policy baseline plus $1.5 trillion in additional deficits permitted), deficit increases ...
Using a reputable tax preparer – including certified public accountants, enrolled agents or other knowledgeable tax professionals – can also help avoid errors.
The standard deduction for 2025 is:
Initially included in the American Rescue Plan Act of 2021, the lower 1099-K threshold was meant to close tax gaps by flagging more digital income. It required platforms to report any user earning $600 or more, regardless of how many transactions they had.
A higher standard deduction
The standard deduction for 2025 was raised to $15,750 for single filers, up from the $15,000 previously in place. For married couples filing jointly, it is increased to $31,500, up from $30,000. And for heads of households, their standard deduction will be $23,625, up from $22,500.
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.
The new income tax slabs and rates under the new regime for the FY 2025-26 (AY 2026-27) are as follows: Rs. 0 to Rs. 4 lakh – Nil, Rs. 4 lakh to Rs. 8 lakh – 5%, Rs. 8 lakh to Rs. 12 lakh – 10%, Rs. 12 lakh to Rs. 16 lakh – 15%, Rs. 16 lakh to Rs. 20 lakh – 20%, Rs. 20 lakh to Rs. 24 lakh – 25%, and income above Rs. 24 ...
The One Big Beautiful Bill Act (OBBBA) or the Big Beautiful Bill (P.L. 119-21), is a U.S. federal statute passed by the 119th United States Congress containing tax and spending policies that form the core of President Donald Trump's second-term agenda. The bill was signed into law by Trump on July 4, 2025.
Effective 2025 through 2028, individuals age 65 and older may claim an additional $6,000 deduction. This is in addition to the standard deduction for seniors available under existing law. Applies per eligible individual (or $12,000 for a married couple if both spouses qualify).
Trump Tax Plan Changes: Standard Deduction
The 2017 Trump tax law (TCJA) nearly doubled the standard deduction for all filers, and OBBB bumped them up. If you're a single filer or if you're married filing separately, your standard deduction for 2025 rose to $15,750 under OBBBA.
The 2025 Trump tax law changes the standard deduction for 2025 to $15,750 for single taxpayers, $31,500 for joint filers, and $23,625 for heads of household. Additionally, as Kiplinger has reported, the GOP tax bill introduces a new temporary and separate $6,000 bonus deduction for those age 65 and older.
Are Medicare premiums tax deductible? Yes, your Medicare premiums can be tax deductible as a medical expense if you itemize deductions on your federal income tax return. You can only deduct medical expenses after they add up to more than 7.5 percent of your adjusted gross income (AGI).
If you are at least 65, unmarried, and receive $17,750 or more in nonexempt income in addition to your Social Security benefits, you typically need to file a federal income tax return (tax year 2025).
Who qualifies for extra $144 added to their Social Security depends on specific federal benefit programs and state supplemental payments. This additional monthly payment typically comes through Supplemental Security Income (SSI) state supplements or special Social Security Administration programs.
What is the maximum Social Security retirement benefit payable?
(NewsNation) — Social Security could put $3,000 per month in your bank account once you've reached retirement age.