Changes to Know When Filing 2025 Taxes

New tax provisions from the One, Big, Beautiful Bill impact deductions, credits, and refund delivery.

Mar. 27, 2026 at 1:05am

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Taxpayers filing their 2025 returns should be aware of several changes resulting from the One, Big, Beautiful Bill passed in July 2025. These include new deductions for tips, overtime pay, and seniors, as well as the introduction of "Trump accounts" for children born 2025-2028. The IRS is also phasing out paper tax refund checks in favor of direct deposit.

Why it matters

These tax law changes can significantly impact the amount owed or refunded for many individuals, especially those who earn tips, work overtime, or are seniors. The new Trump accounts also provide savings opportunities for young children. Additionally, the shift to electronic refund delivery aims to improve speed and security.

The details

The key changes include: a $25,000 deduction for tip income, a $12,500 deduction for overtime pay, and an additional $6,000 deduction for seniors. The One, Big, Beautiful Bill also introduced "Trump accounts" - $1,000 initial deposits from the government for children born 2025-2028, with an additional $5,000 in deposits allowed from family members. Finally, the IRS is phasing out paper tax refund checks in favor of direct deposit to bank accounts, prepaid debit cards, and digital wallets.

  • The One, Big, Beautiful Bill was passed in July 2025.
  • The IRS is requiring direct deposit for tax refunds starting in September 2025.
  • The last day to file 2025 taxes is April 15.

The players

Stacy Engle

An IRS spokesperson who provided details on the tax law changes.

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What they’re saying

“It includes the no tax on tips, and the IRS averages about 6 million people qualify for that, and that's a $25,000 deduction for people that work and earn tips. No tax on overtime which is a $12,500 deduction for folks that work in jobs that earn overtime. Then there is the deduction for seniors. So anyone over 65 can get the additional $6,000 deduction on top of their standard deduction.”

— Stacy Engle, IRS Spokesperson

“If your children are born before 2025 but still a dependent, you can still open a Trump account which qualifies for other folks making deposits into that account. But the children born in '25 through '28 that the government will deposit a $1,000 initial deposit, and each of those accounts is eligible for $5,000 in deposits from anyone else, grandparents, aunts, uncles, moms, dads, if they want to deposit into those $5,000 is the limit per account.”

— Stacy Engle, IRS Spokesperson

“So in order to get your refund for your 2025 tax return, you should input direct deposit information. So the IRS can send your refund to a direct deposit account or electronic funds transfer for with prepaid debit cards, digital wallets, etc. The safest, most accurate and secure way to file a tax return is to choose electronic filing and select Direct Deposit.”

— Stacy Engle, IRS Spokesperson

What’s next

The last day to file 2025 taxes is April 15.

The takeaway

These tax law changes can significantly impact the amount owed or refunded for many individuals, especially those who earn tips, work overtime, or are seniors. The new Trump accounts also provide savings opportunities for young children. Additionally, the shift to electronic refund delivery aims to improve speed and security.