Mid-Season Tax Update for 2025: What you need to know Now

2025 Tax Code Changes You Can Still Take Advantage of — Mid-Season Filing Guide

ax filing season is in full swing, and 2025 brought some major changes that will affect your return when you file in 2026. It’s essential to understand these updates now — not after April 15.

🧾 1. The One Big Beautiful Bill Act Is Reshaping Your Taxes

In July 2025, the One Big Beautiful Bill Act (OBBBA) became law and made wide-ranging changes across federal taxes. This is the biggest shift since the Tax Cuts and Jobs Act and impacts deductions, credits, and income adjustments for individuals and business owners alike.

📊 2. Bigger Standard Deductions

For the 2025 tax year (filed in 2026):

• $15,750 — Single filers

• $31,500 — Married filing jointly

• $23,625 — Head of household

These amounts are higher than 2024 and help reduce taxable income without itemizing deductions — but itemizing may still save more if you have significant expenses (like mortgage interest or state and local taxes).

💰 3. New & Expanded Deductions

Under the updated rules:

• Expanded SALT deduction — Up to $40,000 (with income phase-outs), significantly higher than the old $10,000 cap.

• New targeted deductions — For qualified overtime, tip income, and auto-loan interest.

These “above-the-line” deductions lower your adjusted gross income — which can unlock other tax breaks.

👵 4. Senior Tax Breaks

If you or your spouse are 65+, you may qualify for additional deductions (up to $6,000 per person) on your return.