From Tips to Tires: The Most Diverse Tax Relief Bill in Recent History is Here

Tax season has arrived along with a new federal law that could affect your tax return! 

The One Big Beautiful Bill Act 

The One Big Beautiful Bill Act extends provisions from the 2017 Tax Cuts and Jobs Act that were set to expire. It also adds new benefits for seniors, service workers and families with children. 

Tax Changes for Seniors 

The new law will provide savings for Central Texas seniors 65 and older through increased deductions. A standard deduction is $15,750. $2,000 is added for being over the age of 65. You can then add an additional $6,000 senior deduction. If properly claimed, the total deduction is $23,750. It is crucial that Texas seniors know that they can claim the extra $6,000 deduction. 

Service Industry Workers 

Service Industry workers will benefit greatly from the “No tax on tips” provision of the act. Thanks to the One Big Beautiful Bill Act, tips up to $25,000 are now tax free as long as the taxpayer’s adjusted gross income remains below certain thresholds. 

1. $150,000 for single filers 
2. $300,000 for married couples filing jointly.

Taxes on overtime pay are also eliminated. 

1. Up to $12,500 for single filers 

1. Up to $25,000 for married couples 

Parents 

The One Big Beautiful Bill provides parents with an increased child tax credit of $2,200 per qualified child. 

Other One Big Beautiful Bill Provisions 

No Taxes on Car Loan Interest

Effective 2025 through 2028, you can deduct interest paid on a loan used to buy a qualified vehicle for personal use that meets other eligibility criteria. Lease payments do not qualify. The maximum annual deduction is $10,000. This phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).