New tax laws 2025: FAQs on recent tax law changes

As tax season kicks off, it’s time to see what changes happened in the tax code from 2024 to 2025. Well, what has changed? A lot — and most of the changes came from the One Big Beautiful Bill Act (OBBBA or the Big Bill).

So, what’s new this tax season that can save you money? From tax breaks on overtime and tips to bigger deductions and credits, these changes and updates could make a real difference in your refund.

OBBBA changes and new tax documentation for 2025

The bill makes the larger standard deduction created under the Tax Cuts and Jobs Act permanent. What’s more, the amounts for 2025 are slightly expanded:

• Single or Married Filing Separately — $15,750
• Head of Household — $23,625
• Married Filing Jointly or Qualifying Surviving Spouse — $31,500

In addition to expanded standard deduction, federal tax brackets and other amounts are typically adjusted each year for inflation.

New tax forms and other documents for 2025 taxes

Depending on your tax situation, you may need to gather the following new forms and documents due to the new tax laws in 2025.

• Form 1099-DA for crypto or digital asset sales
• Form 1098-VLI or a statement provided by your lender for vehicle loan interest paid on cars that qualify for the car loan interest deduction
• Paystubs if you’ve worked overtime
• W-2 or tip records if you have eligible tip income
• Proof of state and local taxes paid (SALT deduction); this deduction isn’t new, but the new cap may make it relevant to you
• Social Security numbers for newborns and children for Trump savings accounts

Do tax cuts expire?

Yes, it’s common for tax provisions to have a start and end date as rules evolve. Here are a few tax provisions that ended or are ending in 2025.

• Electric Vehicle Tax Credits ended Sept. 30, 2025
• Home energy tax credits end Dec. 31, 2025
• Enhancements to the Premium Tax Credit end Dec. 31, 2025

New tax laws 2025: FAQs

Do I need professional help for 2025 tax filing with new laws?

The introduction of new tax laws is a great time to rely on the expertise of H&R Block.

With all the changes from new tax laws, it’s a great time to consider professional help and rely on the expertise of H&R Block for your 2025 tax filing. We’re on top of the latest updates from the IRS, so you can feel confident filing.

What credits apply for new parents this tax season?

New parents may be eligible for the Child Tax Credit, Earned Income Tax Credit (EITC), and Adoption Credit:

• The Child Tax Credit has increased to $2,200 per child
• The Earned Income Credit amount varies based on income and number of children
• The Adoption Credit is worth up to $17,670 for qualified expenses (and up to $5,000 is refundable)

How will 2025 tax changes impact my family budget?

The 2025 tax changes could benefit your family budget through expanded Child Tax Credits and other provisions. The increased Child Tax Credit and adjusted Earned Income Tax Credit may result in higher refunds or lower tax liability. The exact savings depend on your income, number of children, and other tax benefits you qualify for.

What’s the easiest way to understand 2025 tax changes for students?

The main tax law changes for 2025 for students are that there are more ways to use 529 Plan dollars. With the One Big Bill, students and families can use up to $20,000 toward a larger list of K-12 expenses. And for college students, there are more expenses covered under the new rules.

What is the impact of new tax laws on investment income for 2025?

While there are typically annual inflation updates for income and capital gain tax rates, the big change this year is for digital asset reporting for investments like crypto and non-fungible tokens.

For 2025 taxes, the law requires digital asset brokers to issue Form 1099-DA for cryptocurrency and other digital transactions. The form will reflect the 2025 tax year but will be sent in early 2026. You’ll need to report these transactions on your tax return, calculating gains or losses.

What tax deductions are expected to change in 2025?

Changes include a higher SALT cap ($40,000), a senior deduction ($6,000 for those 65+), car loan interest deduction (up to $10,000 for new U.S.-assembled vehicles), and 100% bonus depreciation for businesses.

Getting your maximum tax refund, even if 2025 tax changes don’t apply to you

Did you answer “no” to the questions above? Fear not. You may still be able to lower your tax bill with other tax credits and tax deductions for 2025 with the expertise of H&R Block on your side.

— H&R Block