By RnM Advisory · Updated October 11, 2026
OBBBA tax changes can affect the records you bring to your tax appointment and the deductions available on your federal return. The One Big Beautiful Bill Act, signed July 4, 2025, is described by the IRS as the Working Families Tax Cuts. This guide highlights provisions to discuss with your preparer, whether you are finishing a 2025 return or preparing for the 2027 filing season for tax year 2026.
Start with the correct tax year
A return filed during 2026 usually reports income earned in 2025. The upcoming 2027 filing season generally covers tax year 2026. Do not copy last year’s figures into a new return: inflation adjustments, eligibility rules and effective dates matter.
Standard deduction amounts for 2025 and 2026
- Single or married filing separately: $15,750 for 2025; $16,100 for 2026.
- Married filing jointly: $31,500 for 2025; $32,200 for 2026.
- Head of household: $23,625 for 2025; $24,150 for 2026.
These are base amounts. Additional standard deductions for age or blindness may apply. See the IRS individual and worker provisions.
Child Tax Credit: check the refundable amount
For tax year 2025, the Child Tax Credit is up to $2,200 per qualifying child. The refundable Additional Child Tax Credit is up to $1,700 per qualifying child, subject to the earned-income calculation and other requirements. These are maximums, not a guaranteed refund. Age, dependency, income and Social Security number rules affect eligibility. Check the IRS Child Tax Credit guidance for the tax year being filed.
The additional senior deduction
For 2025 through 2028, an eligible taxpayer age 65 by year-end may claim an additional deduction of up to $6,000; a couple can claim up to $12,000 if both qualify. It begins phasing out above modified adjusted gross income of $75,000, or $150,000 for joint filers. It is separate from the existing additional standard deduction for seniors. A qualifying Social Security number is required, and married taxpayers must file jointly to claim it.
Bring your retirement-income information and confirm your filing status with your preparer. The deduction does not automatically make all Social Security benefits tax-free.
Tips, overtime and vehicle-loan interest
These temporary deductions apply for 2025 through 2028 and have specific requirements. The popular “no tax” labels do not mean all related income or expenses are exempt.
Qualified tips
The maximum tips deduction is $25,000. It covers qualifying reported voluntary tips in eligible occupations; additional restrictions apply. The deduction phases out above $150,000 in modified adjusted gross income, or $300,000 jointly. Married taxpayers must file jointly and include the required Social Security number.
Qualified overtime
The deduction covers the qualifying premium above regular pay required by the Fair Labor Standards Act, rather than every dollar earned during overtime hours. The maximum is $12,500, or $25,000 jointly, with phaseouts above $150,000 or $300,000 jointly. Required Social Security number and joint-filing rules also apply.
Qualified vehicle-loan interest
Up to $10,000 of qualifying interest may be deductible. Eligible loans must originate after December 31, 2024, be secured by the vehicle and finance a qualifying new personal-use vehicle assembled in the United States. Used vehicles and leases do not qualify. Phaseouts start above $100,000 in modified adjusted gross income, or $200,000 jointly. Keep the loan statements and vehicle identification number.
Review the IRS deduction fact sheet before claiming any of these deductions. Ask your preparer which payroll and lender records are needed for your particular year.
Business owners: review purchases before claiming a write-off
The law restores a permanent 100% additional first-year depreciation deduction for qualifying business property acquired after January 19, 2025, subject to the applicable rules. Eligibility is not determined by the purchase price alone. Bring invoices, acquisition and placed-in-service dates, financing details and business-use records. See IRS business provisions.
Prepare your records and book a review
Use our tax preparation checklist to organize your records. Flag changes in employment, family circumstances, retirement income and major purchases before your appointment. Tax planning remains part of our ongoing client support.
RnM Advisory serves clients in Fort Lauderdale and across all 50 states. Book a tax appointment to review how the current rules apply to your return. General educational information does not determine your individual eligibility.
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