{"id":4144,"date":"2025-11-25T02:30:54","date_gmt":"2025-11-25T02:30:54","guid":{"rendered":"https:\/\/www.ua-cpas.com\/blog\/?p=4144"},"modified":"2025-11-25T02:30:55","modified_gmt":"2025-11-25T02:30:55","slug":"one-big-beautiful-bill-act-tax-provisions-for-individuals","status":"publish","type":"post","link":"https:\/\/www.ua-cpas.com\/blog\/index.php\/2025\/11\/25\/one-big-beautiful-bill-act-tax-provisions-for-individuals\/","title":{"rendered":"One Big Beautiful Bill Act – Tax Provisions for Individuals"},"content":{"rendered":"\n

There are indeed some beautiful provisions for individuals in the new tax act.<\/p>\n\n\n

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\u201cQualified Tips\u201d are Deductible from Income<\/mark> <\/strong>Effective in 2025, taxpayers may deduct tips. Maximum deduction is $25,000. Tips must be received in occupations which appear on the IRS List of Occupations which Receive Tips. The tips must be reported on Form W-2 or 1099. Deduction phased out for taxpayers with Modified Adjusted Gross Income (MAGI) over $150,000.<\/p>\n\n\n\n

<\/p>\n\n\n\n

New Deduction for Overtime Pay<\/mark> <\/strong>Employees may deduct the overtime pay that exceeds their regular rate of pay (the \u201chalf\u201d portion of \u201ctime and a half\u201d). Overtime must be separately reported on Form W-2 or 1099. Maximum annual deduction is $12,500 ($25,000 for joint filers). Deduction available for itemizing and non-itemizing taxpayers. Effective for 2025. Deduction is phased out for taxpayers with Modified Adjusted Gross Income (MAGI) over $150,000.<\/p>\n\n\n\n

Deduction for Seniors<\/mark> <\/strong>Individuals 65 or older may claim an additional $6,000 deduction. Married couples can receive a $12,000 deduction. The deduction is available for itemizing and non-itemizing taxpayers, effective in 2025. Deduction phases out for taxpayers with MAGI between $75,000 -$175,000 ($150,000-$250,000 for joint filers).<\/p>\n\n\n\n

Child Tax Credit<\/mark> <\/strong>For 2025, the Child Tax Credit increased from $2,000 per child to $2,200.<\/p>\n\n\n\n

Charitable Deduction for Non-Itemizers<\/mark> <\/strong>Charitable deduction for cash gifts up to $1,000 for single filers and $2,000 for joint filers available to non-itemizers. Effective starting 2026.<\/p>\n\n\n\n

Interest Deduction for Car Loans <\/mark><\/strong>Interest paid on a loan for a \u201cqualified\u201d vehicle may be deductible. A qualified vehicle is a new vehicle whose final assembly was in the US. Effective for 2025 for loans originating after Dec. 31, 2024. Maximum deduction is $10,000 and is available for itemizers and non-itemizers. <\/strong>Deduction phases out for taxpayers with AGI over $100,000 ($200,000 for joint filers)<\/p>\n\n\n\n

SALT Deduction Increased <\/mark><\/strong>For 2025, the SALT deduction cap is $40,000. For years 2026 -2029, cap increases 1% a year. Cap phases down if Modified Adjusted Gross Income exceeds $500,000.<\/p>\n\n\n\n

529 Plan Expansion<\/mark><\/strong> The use of 529 plans was expanded effective 2025 and includes curriculum materials, books, test fees, tutoring and educational services for students with disabilities. The K-12 education distribution limit increases from $10,000 to $20,000 per child, starting with distributions made after Jan. 1, 2026.<\/p>\n\n\n\n

Please consult with a tax professional at Urbach & Avraham, CPAs to help you analyze the impact of these new provisions on your personal situation.<\/p>\n\n\n\n

<\/p>\n\n\n

\"\"<\/figure>","protected":false},"excerpt":{"rendered":"

There are indeed some beautiful provisions for individuals in the new tax act. \u201cQualified Tips\u201d are Deductible from Income Effective in 2025, taxpayers may deduct tips. Maximum deduction is $25,000. Tips must be received in occupations which appear on the IRS List of Occupations which Receive Tips. The tips must be reported on Form W-2 […]<\/p>\n","protected":false},"author":3,"featured_media":4154,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22,1],"tags":[110,113,195],"class_list":{"0":"post-4144","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tax-tips-for-individuals","8":"category-uncategorized","9":"tag-income-tax-planning","10":"tag-individual-income-taxes","11":"tag-tax-tips","12":"entry"},"_links":{"self":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/4144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=4144"}],"version-history":[{"count":10,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/4144\/revisions"}],"predecessor-version":[{"id":4157,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/4144\/revisions\/4157"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media\/4154"}],"wp:attachment":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=4144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=4144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=4144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}