2026 Filing Season
New Tax Changes Affecting Your 2025 Return
The One Big Beautiful Bill introduced major tax provisions — no tax on tips, no tax on overtime, a bigger Child Tax Credit, and more. Here's everything you need to know before the April 15 deadline.
25 days until April 15 filing deadline
Key Tax Changes for 2025 Returns
No Tax on Tips
Tips are now excluded from federal income tax for qualifying tipped workers filing 2025 returns. Claim the exclusion on the new Schedule 1-A.
Claim via: Schedule 1-A (Form 1040)
No Tax on Overtime
Overtime pay is now excluded from federal income tax for W-2 employees filing 2025 returns. Claim the exclusion using the new Schedule 1-A.
Claim via: Schedule 1-A (Form 1040)
Schedule 1-A
Schedule 1-A is a brand-new IRS form for 2025 tax returns. It is used to claim the federal income tax exclusions for tip income and overtime pay under the One Big Beautiful Bill.
Claim via: Schedule 1-A (Form 1040) — attach to your return
Senior Standard Deduction
Seniors age 65 and older receive an additional $4,000 standard deduction on top of the normal amount for 2025 returns, providing significant tax relief for retirees.
Claim via: Form 1040 — standard deduction (no special form required)
Child Tax Credit $2,500
The Child Tax Credit increases to $2,500 per qualifying child for 2025 returns, up from $2,000 per child. More of the credit is refundable for lower-income families.
Claim via: Schedule 8812 (Form 1040)
All Tax Changes: Full Overview
Complete overview of all tax changes from the One Big Beautiful Bill that affect 2025 federal tax returns filed in 2026, including no tax on tips, no tax on overtime, Schedule 1-A, increased Child Tax Credit, and enhanced senior deduction.
Read the complete guide →
Important Deadlines
Filing Deadline
April 15, 2026
Standard deadline for 2025 returns
Extension Deadline
October 15, 2026
With Form 4868 extension
FAQ
What new tax changes affect my 2025 return filed in 2026?
The One Big Beautiful Bill introduced several provisions effective for 2025: no federal income tax on tips (up to $25,000), no federal income tax on overtime pay for W-2 employees, a new Schedule 1-A form, the Child Tax Credit increasing to $2,500 per child, and an extra $4,000 standard deduction for taxpayers 65+.
When is the deadline to file my 2025 return with these new provisions?
The standard deadline is April 15, 2026. If you file Form 4868 for an extension, the extended deadline is October 15, 2026. All new provisions from the One Big Beautiful Bill can be claimed on returns filed by either deadline.
Do I need special tax software to claim the new tax changes?
All major tax software (TurboTax, H&R Block, FreeTaxUSA, TaxAct) has been updated for 2025 returns and includes support for Schedule 1-A, the higher Child Tax Credit, and the enhanced senior deduction. No special software is needed.
Do states recognize the federal tax changes from the One Big Beautiful Bill?
It depends on the state. States that conform to federal adjusted gross income (AGI) may automatically reflect the tip and overtime exclusions. States with fixed conformity dates may require separate legislation. Check your state's tax deadline page for details.