New Tax Credits You Can Claim in 2025

The One Big Beautiful Bill Act (H.R.1, 119th Congress) was signed into law on July 4, 2025, as Public Law 119-21, known as OBBBA. The Act introduces significant tax changes. Some changes include:

Senior Bonus Deduction – Extra $6,000 deduction for seniors through 2028.

 OBBBA makes TCJA's modified federal income tax bracket schedule  and lower rates permanent  

Under TCJA, lower rates were set to expire after December 31, 2025  • OBBBA also includes an additional year of inflation adjustment  to the 10% and 12% brackets   

New Standard  Deduction  Amounts  • 2025 temporary increase  • After 2025: indexed for inflation  

 Child Tax Credit (CTC) made permanent. For 2025:   • CTC increased to $2,200/child (indexed) from $2000  • Refundable portion rebased from $1,400 to  $1,700/qualifying child (indexed 

 Energy Incentives – Credits for wind, solar, carbon capture, and efficiency projects (with earlier deadlines).

No Tax on Tips – Deduct up to $25,000 annually (phases out at higher incomes).                                          No Tax on Overtime – Deduct up to $12,500 annually ($25,000 for joint filers).

Charitable Giving Boost – Non‑itemizers can deduct up to $1,000 (single) or $2,000 (joint) above the line.