|
|
Outreach Connection
|
December 18, 2025
|
|
|
In this edition
The IRS is providing implementation guidance on the One, Big, Beautiful Bill. Below are the expansions and changes to deductions affecting taxpayers as they prepare for the filing season.
 Key takeaways about this deduction:
- Effective 2025 through 2028
- Up to $10,000 per year for interest on qualified new vehicle loans
- Phase-out begins at modified adjusted gross income of:
- $100,000 for single filers
- $200,000 for joint filers
Related resources
 The standard deduction increases for tax year 2026, to:
- $32,200 for married couples filing jointly
- $16,100 for single filers and married individuals filing separately
- $24,150 for heads of household
Related resources
 Key takeaways about this deduction:
- Additional $6,000 per taxpayer aged 65 or older
- $12,000 if both spouses qualify
- Phase-out begins at modified adjusted gross income of:
- $75,000 for single filers
- $150,000 for joint filers
Related resources
 Key takeaways about this deduction:
- It applies only to the overtime premium portion of wages
- Modified adjusted gross income caps annually at:
- $12,500 for single filers
- $25,000 for joint filers
Related resources
 Key takeaways on tips deduction for tax year 2026:
- Up to $25,000 of qualified tip income is deductible
- Phase-out begins at modified adjusted gross income of:
- $150,000 for single filers
- $300,000 for joint filers
Related resources
|
|
|
|
