New tax laws 2025: Recent tax law changes to maximize your tax refund

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.

In 2025, did you …

Sell crypto/digital assets?

An IRS new tax rule for digital income/assets means you may see Form 1099-DA if you traded in crypto or used crypto or other digital assets to pay for goods or services through a broker. While digital asset sales have always been taxable, the form is brand new this year. It will be sent at the end of January or mid-February depending on the activity it’s reporting. Keep in mind, even if you don’t get a Form 1099-DA, you’ll still need to report your income.

Earn overtime?

If you put in extra hours in 2025, you could keep more of what you earned. A new tax rule from OBBBA will allow eligible workers to claim a deduction for qualified overtime pay — up to $12,500 for unmarried taxpayers, and $25,000 for married filing joint taxpayers. Earn tips? One of the tax changes for 2025 lets certain tipped workers get a tax break on up to $25,000 of tip income. The new rule covers a wide variety of workers, from food service and the hospitality industry to digital content creators and much more.

Turn 65 or older?

Another one of the 2025 tax changes to take note of is for seniors. Eligible taxpayers in this age group can now take an extra deduction of $6,000. While the provision is not a Social Security deduction, any income—including taxable Social Security income—could be lowered with this new deduction for seniors (Tax rules for Social Security did not change).

Receive payments from third-party platforms?

If you sold items online via platforms like Etsy or Ebay or you were paid through apps like Venmo or PayPal, you could receive Form 1099-K. The new tax laws in 2025 increased the reporting threshold for this form back to $20,000 and 200 transactions. Keep in mind, you still need to report this income even if you don’t get a form.

Have children?

Families with children could see bigger tax breaks this year. Changes in the Big Bill resulted in updates for the Child Tax Credit (increased to $2,200) and Adoption Credit (up to $5,000 is now refundable). For those with kids over 17 or adult dependents, the Credit for Other Dependents was made permanent. Lastly, families with children under 18 can open a new Trump savings account as part of their tax return.

Get a loan for a new American-made car?

If you bought a qualifying vehicle after December 31, 2024, you might be able to deduct the interest on your car loan. The value of the deduction is up to $10,000, so it’s worth checking if your car meets the requirements for the car loan interest deduction.

Make a major purchase for your business?

Self-employed taxpayers and business owners, this one’s for you: you can deduct 100% of the cost of qualifying equipment in 2025, if the property was placed into service on or after January 20, 2025. This 100% bonus deduction applies to investments such as machinery, equipment, technology upgrades, and more.

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