---
title: 2025 Federal Tax Law Changes
description: The One Big Beautiful Bill Act (OBBB) makes most Tax Cuts and Jobs Act (TCJA) provisions permanent starting in 2025. It also introduces several temporary deductions available through 2028.
---
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# 2025 Federal Tax Law Changes
#### Overview
The **One Big Beautiful Bill Act (OBBB)** makes most *Tax Cuts and Jobs Act (TCJA)* provisions permanent starting in 2025. It also introduces several temporary deductions available through 2028.
**For full details, check out this link:**
[Full 2025 Tax Law Update Information](https://docs.google.com/presentation/d/1EEYS44hbIpXne6pvzvYhR-Mam9Nnm35hqK1jSQIx0pA/edit?usp=sharing)
---
#### Key Highlights
- **Tax Rates:** TCJA tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) are now **permanent**.
- **Standard Deduction:** Increased to **$15,750 (Single)** and **$31,500 (Married Filing Jointly)**.
- **Personal Exemptions:** Permanently eliminated.
- **New Deductions (2025–2028):**
- *No Tax on Tips* – up to **$25,000** per return.
- *No Tax on Overtime* – up to **$12,500** per individual.
- *Car Loan Interest* – up to **$10,000** for new U.S.-assembled vehicles.
- *Enhanced Senior Deduction* – additional **$6,000** for taxpayers age 65+.
- **SALT Cap:** Raised to **$40,000** (2025), gradually increasing until 2029, then reverts to $10,000.
- **Child Tax Credit:** Permanently increased to **$2,200** per child.
- **Bonus Depreciation:** Set permanently at **100%**.
---
#### Additional Updates
- New **Schedule 1-A** for reporting additional deductions.
- **Form 1099-DA** introduced for digital asset reporting.
- **Form 1040** redesigned with ~30 updates.
---
#### Reminder
Taxpayers are advised to **review their W-4 forms** for proper withholding since IRS withholding tables have not been updated to reflect these changes.
---
**For full details, check out this link:**
[Full 2025 Tax Law Update Information](https://docs.google.com/presentation/d/1EEYS44hbIpXne6pvzvYhR-Mam9Nnm35hqK1jSQIx0pA/edit?usp=sharing)
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