In 2025, tax relief is primarily driven by the "One Big Beautiful Bill Act" (OBBBA), which provides new deductions for seniors (65+), no-tax provisions on certain tips and overtime, increased standard deductions, and higher child tax credits for qualified taxpayers. Key beneficiaries include seniors ($6k–$12k extra deduction), hourly workers, and families.
Deduction for seniors (Section 70103)
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).
Canadians got a small tax cut midway through 2025, potentially saving individuals up to $420 and two-income families up to $840 per year. The Canada Disability Benefit for working-aged Canadians launched in 2025.
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.
During the 2025 tax filing season, the IRS issued more than 93.5 million tax refunds to individual income tax filers, and 93% of those, almost 87 million refunds, were issued through direct deposit. Only 7 percent of individual refund recipients received their refunds by check through the mail.
According to those same statistics, 103,846,000 taxpayers received a total of $328.878 billion in tax refunds in 2025. That represents 63% of taxpayers—meaning more than six in ten taxpayers received a refund. (That figure is slightly lower than in 2024, when 64% of taxpayers received a tax refund.)
No, the IRS is not issuing new $1400 stimulus checks; the final pandemic-era payments for the Recovery Rebate Credit (the third stimulus) were sent out by early 2025 to eligible people who missed them by filing their 2021 return by the April 2025 deadline. While payments were made in late 2024 and early 2025, that was the final opportunity, and any current claims of new stimulus checks are likely scams or misinformation, as Congress has not approved any new federal stimulus programs.
The standard deduction increased for 2025 and 2026, and a new temporary “bonus” deduction for adults 65 and older begins in 2025. The child tax credit increased to $2,200 for the 2025 and 2026 tax years; retirement plan contribution limits for IRAs and 401(k)s also increased for 2026.
An individual who is resident in India and whose total income does not exceed Rs. 5,00,000 is entitled to claim rebate under section 87A. Rebate under section 87A is available in the form of deduction from the tax liability. Rebate under section 87A will be lower of 100% of income-tax liability or Rs.
Tax rebates are different from tax refunds, as they are issued at any time during the year and are not related to deductions and credits claimed on a return. Some governments provide incentives in the form of rebates for the purchase of hybrid cars that reduce gasoline consumption.
In Canada, a $2,000 tax credit often refers to the Pension Income Amount (Line 31400) for seniors receiving eligible pension/annuity income, creating a $300 federal credit (15% of $2,000), or a provincial Training Tax Credit for Apprentices, like British Columbia's $2,000 for completing specific training levels, while other benefits like the GST/HST Credit or Disability Benefit offer amounts varying based on income and family situation, not a fixed $2,000 for everyone.
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.
A recent tax law ("One Big Beautiful Bill") introduced a new $6,000 bonus deduction for Americans aged 65 and older, available for tax years 2025-2028, reducing taxable income, not the tax itself, with income phase-outs starting at $75,000 MAGI for singles and $150,000 for joint filers. This deduction adds to existing standard deductions, provides up to $12,000 for couples, and requires a Social Security number and filing status other than Married Filing Separately.
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?
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.
For tax year 2025, the main "Social Security tax break" isn't a direct cut to the payroll tax (which stays 6.2%), but rather a new, temporary $6,000 extra deduction for seniors (age 65+) under the One Big Beautiful Bill Act. This deduction, effective 2025-2028, reduces taxable income, potentially eliminating federal income tax on Social Security benefits for many, applying to incomes up to $75k (single) or $150k (joint), and stacks with existing senior standard deductions.
Section 87A Rebate – Income Tax Relief for Salaried Individuals (Old & New Regime) The latest Union Budget for FY 2025-26 has raised the tax rebate limit to ₹12 lakh per annum. Additionally, the Section 87A rebate has been increased to Rs. 60,000, up from the previous threshold of Rs.
You are eligible for a personal exemption if you are one of the following: a Canadian resident returning from a trip outside Canada; a former resident of Canada returning to live in this country; or. a temporary resident of Canada returning from a trip outside Canada.
It's better to itemize if your total eligible expenses (mortgage interest, state/local taxes up to a limit, charitable donations, medical costs) exceed the Standard Deduction amount for your filing status; otherwise, taking the Standard Deduction is simpler and saves more money. You must choose one method, and the goal is always to reduce your taxable income the most, so compare the totals and pick the larger figure.
Reduction of the Lowest Federal Personal Income Tax Rate
The Federal Government announced a reduction in the lowest federal personal marginal tax rate from 15% to 14%, effective July 1, 2025. This change will benefit individuals in the lowest income brackets.
$1,400 for an eligible individual who has a valid Social Security number (SSN) ($2,800 for married couples filing a joint return if both spouses have a valid SSN or if one spouse has a valid SSN and one spouse was an active member of the U.S. Armed Forces at any time during the taxable year) plus.
Stimulus payments
Single taxpayers with an adjusted gross income (AGI) of $75,000 or below. Taxpayers filing as heads of household with AGIs of $112,500 or below. Married couples filing jointly with AGIs of $150,000 or below.