What changed for my taxes in 2025?

You can deduct $6,000 from your 2025 tax return if:

• You are age 65 or older by December 31, 2025
• You have a valid Social Security Number
• You do not use the Married Filing Separately filing status

For married taxpayers who file jointly, you can deduct up to $12,000 if both spouses qualify.

This deduction begins to phase out if you make more than $75,000 ($150,000 for joint filers).

You can deduct up to $25,000 of tip income on your 2025 tax return if:

• You have one of the jobs that the IRS identified as “customarily and regularly receiving tips” (a finalized list will be published by the IRS before December 31, 2025)
• The tip income was reported on Form W-2, Form 1099, another statement given to you, or you report the tips on Form 4137
• You have a valid Social Security Number
• You do not file using the Married Filing Separately filing status

For example, many employees in service jobs already receive a W-2 with their tips reported in Box 7 – Social Security Tips.

This deduction begins to phase out if you make more than $150,000 ($300,000 for joint filers).

You can deduct up to $12,500 of qualified overtime pay ($25,000 for joint filers) from your 2025 tax return if:

• The overtime is reported on Form W-2, 1099, another statement given to you, or you report it yourself
• You have a valid Social Security Number
• You do not use the Married Filing Separately filing status

Important: only pay that is more than your normal pay qualifies. If you receive time-and-a-half, then only the “half” part can be deducted. For example, Joe makes $20 per hour. He worked overtime hours and received $30 per hour for those overtime hours. He can only deduct $10 per hour for each of the overtime hours. ($30 per hour minus his normal rate of $20 per hour.)

This deduction begins to phase out if you make more than $150,000 ($300,000 for joint filers).

You can deduct up to $10,000 on your 2025 tax return if:

• You purchased a vehicle with a loan after December 31, 2024
• The vehicle was for your personal use
• The vehicle is new, not used
• The vehicle was a car, minivan, van, SUV, pickup truck or motorcycle with gross vehicle weight less than 14,000 pounds and underwent final assembly in the US
• You include the VIN on your tax return
• You receive a statement from the lender that shows the total amount of interest you paid

Leased vehicles do not qualify.

This deduction begins to phase out if you make more than $100,000 ($200,000 for joint filers).