🧾 1. Extended and Modified Tax Brackets

• The seven federal income tax rates (10%–37%) remain in place, but the thresholds and inflation adjustments are extended under the new law instead of reverting to higher pre-2018 levels that were set to return in 2026. 

📈 2. Larger Standard Deductions

• Standard deduction amounts are higher for the 2025 filing year (returns filed in 2026):
  • $15,750 – Single
  • $31,500 – Married filing jointly
  • $23,625 – Head of household
  These increases exceed regular inflation adjustments. 

👵 3. New Deduction for Seniors

• Taxpayers age 65+ may qualify for a special $6,000 deduction (up to $12,000 for married couples if both spouses qualify), beyond the standard deduction. This phases out at higher income levels. 

💼 4. Expanded SALT Deduction

• The cap on the state and local tax (SALT) deduction increases from $10,000 to potentially $40,000 (with phase-outs at higher income levels) for 2025–2029. 

💰 5. “No Tax on Tips & Overtime” Benefits

• New rules allow certain tipped workers and overtime earners to exclude a portion of that income from tax (up to limits such as $12,500 for single taxpayers and $25,000 joint). Documentation and employer reporting rules may differ. 

📄 6. New Forms & Tax Reporting Requirements

• New tax forms may arrive for the 2025 tax year (filed ’26), including:

  • Form 1099-DA for digital asset (crypto) transactions

  • New forms for car loan interest deduction
    These reflect expanded reporting requirements. 

🧒 7. Other Credits & Deductions Changing

• The law has also boosted or revised various tax credits and deductions, including:

  • Child tax credits

  • Qualified business income deductions

  • Adoption and childcare credits
    Many are complex and income-dependent — it’s worth reviewing specifics with a professional. 

📊 8. IRS Inflation Adjustments for 2026

• Inflation adjustments continue for the 2026 tax year (returns filed in 2027), including:

  • Higher standard deductions

  • Higher AMT exemption amounts

  • Larger estate tax exclusion
    These affect long-term planning but won’t directly change your 2025

  • ​

  • 🧠 Bottom Line

  • For most taxpayers filing in 2026 for the 2025 tax year, the biggest impacts come from higher standard deductions, new senior deductions, expanded SALT limits, and special rules for tips and overtime income resulting from the new federal tax law. Many other credits and adjustments have changed too, making 2025 one of the more complex tax years in recent history.

  • If your situation includes business income, retirement decisions, crypto transactions, or specialized deductions, it’s a good idea to consult Dolence & Means to make sure you’re taking full advantage of these changes.