Several items were addressed in the OBBBA bill that was signed in 2025. Here are some of the highlights.

Many tax provisions are made permanent. Several items that were set to expire in 2025 were addressed in this bill. These include:

Standard deduction amounts will continue as is, adjusted for inflation, instead of reverting to lower levels prior to 2018. MFJ/QSS: $31,500, Single/MFS: $15, 750, HOH: $23,625. The amounts will be adjusted annually for inflation.
The personal exemption was suspended for tax years 2018-2025. The exemption amount was set to revert to 2017 levels, adjusted for inflation. The exemption is now permanently terminated for all taxpayers with the exception of a temporary deduction for seniors (aged 65+)
- For tax years 2025 thru 2028 taxpayers aged 65 or better may be able to deduct up to $6,000 per qualified individual, subject to income phase outs.
- In the case of a joint return, spouses aged 65+ may also claim up to $6,000, subject to income phase outs.
- The senior deduction is not available for filing status of MFS, therefore, if married, the couple must file a joint tax return.
Moving Expenses were deductible prior to 2018 under certain circumstances. Beginning in 2018, the moving expenses were only available to members (or family of) the Armed Forces on active duty. This provision was set to expire and revert to pre-2018 rules, however, it was made permanent and now includes new appointees of the intelligence community.
Prior to 2018, itemizing taxpayers may have been able to deduct Miscellaneous expenses subject to 2% of AGI. This was suspended in 2018 and set to revert back into law in 2025. This has been made permanent. However, starting in tax years after 2025, educators may deduct certain expenses.
Permanently extended were the current tax rates of 10%, 12%, 22$, 24%, 32%, 35% and 37%.

A few new temporary provisions were introduced with this bill. For tax years 2025-2028 taxpaperys may take advantage of these items:

“No tax on tips”. Individuals who receive tips from occupations that typically receive tips (see irs.gov for a list of approved occupations) may exclude that amount from federal taxes. The amount is limited to $25,000/year, subject to income limitations. For 2025, taxpayers in these occupations will need to provide documentation in order to determine the amount of tip income. For tax years 2026 and later, these figures will be included on the W2.
“No tax on overtime”. Similarly, overtime earners may also exclude a portion of their overtime pay, subject to income limitations. Employees are encouraged to seek a letter from their employers or keep paystubs from all posts to determine the amount to exclude from tax.
Deduction for qualified passenger vehicle loan interest. Qualified vehicles must be New, used on public streets and has at least 2 wheels (so this includes motorcycles), and must have been assembled in the US. Many car dealers will provide a letter to taxpayers if the car is qualified. Must include VIN.

A few tweaks were made concerning the limit of state and local taxes paid for itemizing taxpayers. The deduction limitation for 2025 is extended to $40,000. The amount is increased each year for tax years 2026 thru 2028, but reverts to $10,000 in 2029.

Beginning for tax years 2026, taxpayers will be able to deduct up to $1,000 in charitable deductions ($2,000, MFJ) without itemizing their deductions. There is also a floor based on the taxpayer’s AGI to deduct charitable contributions for those who itemize.

All energy efficient and clean vehicle tax credits are permanently removed for tax years after 2025. There are no more credits for home improvements (windows, doors, boilers, etc.) or items like solar panels after 2025. For some unknown reason, electric cars had to be purchased before September 30, 2025 to claim the credit. All the energy credits were to apply through tax years 2032, so, well, there’s that.

Premium tax credits are for health insurance premiums paid by taxpayers enrolled in qualified health plans offered through the ACA. After 2026, taxpayers must be citizens or “eligible aliens” to claim the credit.