Overview
- Inflation‑adjusted brackets and higher standard deductions are in effect, with new withholding tables raising take‑home pay for many workers.
- A new $6,000 deduction for taxpayers 65 and older applies for 2025–2028 with phaseouts above $75,000 single or $150,000 joint.
- Temporary breaks include deductions for qualified tips up to $25,000 and for overtime pay up to $12,500 single or $25,000 joint, subject to income limits and job rules.
- Key new benefits for tips, overtime, seniors and car‑loan interest require the forthcoming Schedule 1‑A, which appeared only in draft form in late December.
- IRS Direct File will not be offered this season, most paper refund checks are ending with limited exceptions, and the agency has not yet announced a filing start date as experts flag potential service delays after staffing and leadership changes.