New Trump Tax Breaks, With a Catch

(Dreamstime)

In addition to changing some tax rules, the One Big Beautiful Bill Act also introduced several new tax breaks. These might seem out of reach because they are only available under certain income thresholds, but you might be surprised. When you work on other aspects of your 2025 taxes, you may whittle your income down enough to qualify.

For example, “If a married couple has a modified adjusted gross income of $250,000 and they buy a $50,000 piece of equipment for their business, that brings their income to $200,000 after the 100% depreciation. Now they may be eligible for other tax benefits,” says Brian Schultz, a tax partner at Plante Moran.

Here are new deductions, effective this year, that eligible taxpayers can use even if they claim the standard deduction:

Cars

A deduction of up to $10,000 for loan interest on U.S.-assembled vehicles purchased for personal use. The deduction phases out incrementally for joint filers earning $200,000 to $250,000 and singles earning $100,000 to $150,000. Used cars don’t qualify.

Tips and Overtime Pay

Taxpayers can deduct up to $25,000 of tips, and up to $12,500 of overtime income for singles and $25,000 for joint filers. The perk starts to taper off for joint filers with incomes from $300,000 to $550,000, or $150,000 and $400,000 for singles.

Seniors

Taxpayers who turn 65 this year may be eligible for a new senior deduction of up to $6,000 for singles or $12,000 for married couples. The income phaseout: between $150,000 to $250,000 for joint filers and $75,000 and $175,000 for singles.

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