Keep an eye out for your W-2- to file taxes this year. Employers have to send them out by February 2, and there are a lot of changes from President Trumps "One Big Beautiful Bill" youll want to know about.Standard deductions are risingThe biggest one is the standard deduction is higher across the board. Single filers will be able to deduct $750 more this year compared to last as the standard deduction goes from $15,000 in 2024 to $15,750 in 2025.If you are a married couple filing jointly, the deductions jumps $1,500, from $30,000 in 2024 to $31,500 in 2025.The head of the household will also see an increase of $1,125 from $22,500 in 2024 to $23,625 in 2025.Deductions for tipped wagesIf you work in the service industry, youll also now be able to deduct some or all of your tips.This ones tricky, though. The tips must be qualified meaning they are voluntary and in industry where tipping is customary. The United States Department of the Treasury website has a list of more than 700 professions that fall under the category.There are income limits to this deduction so if your adjusted gross income is above $150,000 you wont get the full deduction. Also, some tipped workers may not benefit because they earn too little to owe federal income tax.Personal deduction for seniorsSenior citizens born before January 2, 1961 will now be able to deduct $6,000 ($12,000 for married couples filing jointly). The new deduction is in addition to, not instead of, the deduction increases noted earlier.The deduction decreases if your adjusted gross income is more than $75,000 per person. It's not allowed if your income exceeds $175,000 ($250,000 for married couples).Higher state and local tax deductionsThe cap for the amount of state and local taxes is increasing significantly this year. Previously, there was a $10,000 cap on these deductions, but this year, that cap is $40,000 ($20,000 if married and filing jointly).In addition, you may be able to deduct your property taxes if your income or sales tax doesnt exceed that cap.Overtime pay tax deductionIf you work overtime, youll be able to deduct taxes from the portion of your income that exceeds 40 hours a week. The way the Internal Revenue Service (IRS) guidance words this is tricky.Lets say you make $30 an hour, and earn time and a half ($45) an hour for overtime. The deductible portion would be the extra $15 each hour. That also goes for if you make double pay during overtime. The deductible portion would still be $15.The overtime must also be considered qualified by federal standards, meaning if local or state laws or union rules differ on what is considered overtime pay, they do not qualify. It only applies to hours that fall under the Federal Labor Standards Act.There are income limits on how much overtime pay you can deduct ($12,500 for single filers, $25,000 for married joint filers).There is also a new Schedule 1-A form you must fill out from the IRS.New crypto tax reporting requirementsStarting this year, centralized crypto exchanges such as Coinbase will report certain crypto transactions directly to both you and the IRS. If you sold or exchanged cryptocurrency on one of these platforms in 2025, expect to receive Form 1099-DA by mid-February. This doesnt meanallof your crypto activity will be reported, though. Some transactions are excluded from the 1099-DA.Government-funded investment accounts for newborns (Trump Accounts)Babies born between Jan. 1, 2025, and Dec. 31, 2028, may qualify for a $1,000 federal contribution into a new individual investment account. To be eligible, the child must be a U.S.-born citizen, and both parents and the baby must have Social Security numbers. According to draft IRS instructions, the quickest and safest way to notify the treasury department and make the required election is by filing Form 4547 with your e-filed tax return.Clean vehicle tax credits ending soonerClean vehicle tax credits are expiring sooner, including up to $7,500 for new clean vehicles and up to $4,000 for used ones. These credits reduce your tax bill dollar for dollar. Any plug-in electric or fuel cell vehicle purchased after Sept. 30, 2025, will no longer qualify. If you bought a qualifying vehicle for personal use before that date and meet the other requirements, you must file Form 8936 with your tax return.Increase in the child tax creditThe maximum child tax credit has increased to $2,200 per qualifying child, up from the previously scheduled $2,000. To claim the credit, both the parents and the qualifying child must have Social Security numbers, along with meeting the other eligibility rules.Deduction for car loan interestIf you financed a new vehicle for personal use in 2025 such as a car, motorcycle or van you may be able to deduct part of the interest paid on the loan. The vehicle must have completed its final stage of production in the United States, which can be verified using the VIN. The deduction is capped at $10,000 per year and begins to phase out if your modified adjusted gross income exceeds $100,000 ($200,000 for joint filers). Once your adjusted gross income surpasses $149,000 ($249,000 for joint filers), the deduction is no longer allowed.Youll need to complete a new IRS form, Schedule 1-A, to claim the deduction. ...read more read less