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New Tax Benefits Are Here for 2025–2028

The OBBBA (One Big Beautiful Bill Act) introduces temporary tax advantages for small businesses and individuals through 2028. These changes could reduce your tax burden if you qualify.

From enhanced deductions to new credits, understanding these benefits now can help you plan ahead and maximize savings.

Plain-English overview. Not tax or legal advice.

Important Updates Ahead

Keep scrolling to discover the key changes that could affect your 2025 tax strategy.

The
One, Big, Beautiful Bill
Timeline

Key milestones and dates for the One Big Beautiful Bill Act from signing to sunset.

U.S. Capitol building at dusk
July 4, 2025

One Big Beautiful Bill Act Passed

Major Federal Tax Relief Law

legislation
completed

Sweeping federal tax relief law signed on Independence Day, delivering temporary benefits to working families and small businesses.

Key Details:

  • Signed into law on July 4, 2025 [1] 
  • About 60–80% of people will receive a tax cut under OBBBA [2] 
  • Most provisions are temporary and include sunsets [1] 
Sources:[1]– Congress.gov – H.R.1 (OBBBA) actions[2]– Tax policy coverage – majority receive cuts
Restaurant server taking an order
January 1, 2025

“No Tax on Tips” Deduction Active

Up to $25,000 deductible (phased)

benefit
active

Workers in regularly tipped professions can deduct a portion of tip income, subject to income limits.

Key Details:

  • Deduct up to $25,000 in qualified tips (2025–2028) [3] 
  • Phase-out begins at $150k (single) / $300k (joint) [3]  [4] 
  • Applies to customarily tipped occupations; reported tips (W-2/1099/4137) count [4] 
Sources:[3]– IRS – OBBBA deductions (Tips Details)[4]– IRS – OBBBA Provisions Page (Tips Rules)
Construction worker checking time
January 1, 2025

“No Tax on Overtime” Begins

Up to $12,500 (single) / $25,000 (joint)

benefit
active

Overtime premium pay can be deducted from federal taxable income, increasing take-home pay.

Key Details:

  • Deduct up to $12,500 per person of overtime premium pay ($25,000 MFJ) [5] 
  • Phase-out begins at $150k (single) / $300k (joint) [5] 
  • Covers the “half-time” premium portion in time-and-a-half pay [5] 
Sources:[5]– IRS – OBBBA Provisions Page (Overtime rules)
Family looking at a new car in a dealership
January 1, 2025

Auto Loan Interest Deduction

Up to $10,000 interest deductible

benefit
active

Interest paid on qualifying new personal auto loans is deductible, with income phase-outs.

Key Details:

  • Vehicle must have had its final assembly in America [6] 
  • Deduct up to $10,000 of auto loan interest [7]  [8] 
  • Phase-out begins at $100k (single) / $200k (joint) [7] 
  • Personal-use, new vehicle eligibility; see IRS guidance [6]  [8] 
Sources:[6]– IRS – Auto loan interest (qualified vehicle definition)[7]– H&R Block – OBBBA car loan interest deduction[8]– IRS – OBBBA Provisions Page (Auto-interest rules)
Senior couple reviewing documents
January 1, 2025

Additional Senior Deduction

$6,000 per senior ($12,000 if both 65+)

benefit
active

Taxpayers age 65+ receive an additional deduction on top of the standard deduction.

Key Details:

  • Extra $6,000 per senior (2025–2028); $12,000 if both spouses 65+ [9] 
  • Phase-out begins at $75k (single) / $150k (joint) [9] 
  • Available whether you take standard or itemized deductions [9] 
Sources:[9]– IRS – Provisions Page (Senior deduction)
Tax preparation desk
April 15, 2026

First Filing Season

Tax Year 2025 Returns (filed 2026)

deadline
upcoming

First opportunity for taxpayers to claim new OBBBA benefits on their federal returns.

Key Details:

  • 2025 IRS forms/software updated for OBBBA [3] 
  • Oregon returns reflect federal taxable income changes [10] 
Sources:[3]– IRS – OBBBA deductions (forms & guidance)[10]– Oregon DOR – Oregon taxable income conformity
Analysts reviewing charts
December 31, 2026

Mid-Term Program Review

Effectiveness assessment

implementation
upcoming

Comprehensive review of OBBBA impact and effectiveness, with potential adjustments for remaining years.

Key Details:

  • Usage & distribution analysis across provisions [3] 
  • Compliance and economic impact assessment [3] 
Sources:[3]– IRS – OBBBA deductions (agency guidance/FAQs)
Rural development area with sunrise
January 1, 2027

Opportunity Zones: Permanent & Expanded

New rules begin

implementation
upcoming

OBBBA makes Opportunity Zones permanent and updates incentives, including new zones and step-ups.

Key Details:

Sources:[11]– PwC – OZs made permanent via OBBA/OBBBA[12]– FORVIS Mazars – OZ permanency summary
Calendar with year-end highlighted
January 1, 2028

Program Sunset Approaches

Final year of most benefits

deadline
upcoming

Most provisions end after 2028 unless Congress extends them; Opportunity Zones are permanent.

Key Details:

Sources:[3]– IRS – OBBBA deductions (sunset references)[11]– PwC – OZs made permanent via OBBA/OBBBA[12]– FORVIS Mazars – OZ permanency summary
Fireworks on New Year’s Eve
December 31, 2028

Most OBBBA Provisions Sunset

Unless extended by Congress

deadline
upcoming

This is the scheduled end date for most temporary OBBBA benefits.

Key Details:

  • Temporary provisions terminate on Dec 31, 2028 [3] 
  • Opportunity Zones remain in effect (permanent) [11]  [12] 
Sources:[3]– IRS – OBBBA deductions (sunset references)[11]– PwC – OZs permanent[12]– FORVIS Mazars – OZ update summary
Completed
Active
Upcoming

Sources

[1]Congress.gov – H.R.1 (OBBBA) actions
[2]Tax policy coverage – majority receive cuts
[3]IRS – OBBBA deductions (Tips Details)
[4]IRS – OBBBA Provisions Page (Tips Rules)
[5]IRS – OBBBA Provisions Page (Overtime rules)
[6]IRS – Auto loan interest (qualified vehicle definition)
[7]H&R Block – OBBBA car loan interest deduction
[8]IRS – OBBBA Provisions Page (Auto-interest rules)
[9]IRS – Provisions Page (Senior deduction)
[10]Oregon DOR – Oregon taxable income conformity
[11]PwC – OZs made permanent via OBBA/OBBBA
[12]FORVIS Mazars – OZ permanency summary

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Tax Knowledge Quiz

Test your understanding of the new OBBBA-era changes for Tax Year 2025.

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Includes W-2 income from employers.

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Frequently Asked Questions (OBBBA)

Common questions about the One Big Beautiful Bill Act and its implications.

Frequently Asked Questions

Common questions about the 2025 tax changes and how they might affect you.

Helpful Resources

Official tools and guidance to help you understand and claim your 2025 tax benefits.

NHTSA VIN Decoder

Vehicle Information

Official tool to decode your vehicle's VIN and verify country of assembly

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IRS Service Industry Occupations List

Employment

Official list of qualifying service industry occupations for tips deduction

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IRS OBBBA Overview

Official Guidance

Official IRS guidance on the One Big Beautiful Bill Act

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Tax Form Instructions

Forms & Publications

Updated instructions for claiming new 2025 tax benefits

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