OBBBA Tax Changes 2025: What Tax Professionals Need to Know

The One Big Beautiful Bill Act (OBBBA) introduces significant changes for tax year 2025. Here's a concise overview for tax professionals.

Schedule 1-A: Additional Deductions

The centerpiece is Schedule 1-A, which allows deductions for:

• Tips — Up to $25,000 for qualifying tip income
• Overtime — Up to $12,500 (Single) or $25,000 (MFJ)
• Car loan interest — Up to $10,000 for US-assembled vehicles
• Seniors — $6,000 per eligible person (65+)

Each category has its own eligibility rules, phaseouts, and documentation requirements.

IRS Guidance

Notice 2025-69 provides guidance on tips and overtime calculation methods. The form remains in draft — verify before filing.

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