The One Big Beautiful Bill Act has made some important tax changes:
An increased standard deduction, which is now permanent.
Lowered income tax rate reduction.
> State and local tax deduction cap has increased from $10,000 to $40,000, which will allow some of you to itemize deductions again.
> Up to $25,000 in tip income is now deductible.
> Individuals over age 65 can deduct an additional $6,000 ($12,000 for married joint filers). This is subject to income phase-out for income (MAGI) over $75,000 for single filers and $150,000 for married joint filers.
> Individuals can deduct up to $12,500 ($25,000 for joint filers) of qualified overtime compensation (subject to phase-out over $150,000 for single filers and $300,000 for married joint filers). For every $1,000 of income above these thresholds, the deduction is reduced by $100.
> Auto loan interest up to $10,000 annually can be deducted on new personal-use vehicle loans (subject to income phase-out over $100,000 for single filers and $150,000 for married joint filers). This applies even if you do not itemize deductions.
> If you are unable to itemize deductions, you can claim an above-the-line charity deduction of up to $1,000 for single filers and $2,000 for married couples filing jointly. This only applies to cash donations to public charities. This deduction will also apply to your MA return.
> IMPORTANT: the IRS is no longer issuing paper refund checks. Therefore, you will need to make arrangements for your refund to be direct-deposited to your bank account, if you are not already doing this.
The IRS has published online tools and key reminders for 2025. Once the final dates for tax season opening and e-file acceptance are posted, we will update this website.
