Here’s what HIVE AI had to say about “What are the key One, Big, Beautiful Bill Act changes relevant this tax season?”:
2026 filing season
For the current filing season, you are generally filing your 2025 federal return, due April 15, 2026, and the IRS has said several One, Big, Beautiful Bill Act provisions first affect these 2025 returns.
Key individual changes relevant this season
- The TCJA-style individual rate structure was made permanent, so the seven individual brackets of 10%, 12%, 22%, 24%, 32%, 35%, and 37% continue instead of reverting after 2025.
- The higher standard deduction was extended and enhanced for 2025. For 2025 returns, the standard deduction is $15,750 for single and married filing separately, $31,500 for married filing jointly, and $23,625 for head of household.
- There is a new deduction for seniors for 2025 through 2028. Eligible taxpayers age 65 or older may claim an additional $6,000 deduction per qualifying person, with phaseouts starting above modified AGI of $75,000 single and $150,000 joint. It is available whether or not the taxpayer itemizes.
- There is a new “no tax on tips” deduction for 2025 through 2028. Eligible employees and self-employed individuals can deduct up to $25,000 of qualified tips, subject to phaseout above modified AGI of $150,000 single and $300,000 joint.
- There is a new “no tax on overtime” deduction for 2025 through 2028. IRS guidance treats this as one of the four major new individual deductions for 2025 returns, and for 2025 reporting the IRS said Forms W-2, 1099, and withholding tables were not changed yet, so taxpayers may need to compute the deduction from existing reporting.
- There is a new deduction for qualified passenger vehicle loan interest for 2025 through 2028. IRS guidance describes it as up to $10,000 per year, phased out above modified AGI of $100,000 single and $200,000 joint, for qualifying personal-use vehicle loans.
- The expanded child tax credit rules were made permanent.
- The adoption credit was enhanced so that beginning with tax years after December 31, 2024, up to $5,000 of the credit can be refundable, subject to inflation adjustment.
Other notable items
- The qualified business income deduction under section 199A was extended, and the taxable-income phase-in ranges were increased to $75,000 single and $150,000 joint. The law also added a $400 minimum deduction for certain active QBI taxpayers beginning after 2025, with inflation adjustments after 2026.
- Trump Accounts were added, but they are mainly a future item for individuals because the IRS says the provision applies to taxable years beginning after December 31, 2025, and accounts cannot be funded before July 4, 2026.
Practical bottom line for this season
The biggest changes for most individual taxpayers filing 2025 returns are the higher standard deduction, the new senior deduction, the new deductions for tips, overtime, and qualifying car-loan interest, plus the adoption-credit refundability change. IRS guidance also says these are claimed using new Schedule 1-A.
If you want, I can also break this down specifically for W-2 employees, retirees, parents, or self-employed taxpayers.
Sources
1 – IRS Newsroom – IR-2026-02
2 – Rev. Proc. 2025-32
3 – One Big Beautiful Bill Act Sec. 70102. Extension and enhancement of increased standard deduction
4 – IRS Newsroom – IR-2025-103
5 – IRS Newsroom – IR-2026-04
6 – IRS Newsroom – IR-2025-82
7 – Notice 2025-69
8 – One Big Beautiful Bill Act Sec. 70105. Extension and enhancement of deduction for qualified business income
9 – Notice 2025-68
10 – One, Big, Beautiful Bill provisions – Individuals and workers
11 – One, Big, Beautiful Bill Act: Tax deductions for working Americans and seniors
12 – One, Big, Beautiful Bill provisions
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