Apr 02, 2026
The deadline for the 2025 tax season is April 15th, and with the One Big Beautiful Bill Act passing last July, many Idahoans could be entitled to new deductions."The main change is back in July 2025. The big Beautiful bill inclu ded some new deductions and included overtime to the premium portion of overtime being, nontaxable tips," Charles Brooks, the district manager for the 7th district Tax Aide, explained. "The senior deduction is probably the one with the most impact for the people we prepared returns for. And then there was another one for new car interest. Can't be pre-owned cars. And that is deductible."These new deductions include: No tax on overtime Senior tax deduction New vehicle interest deduction Tipped worker deduction State and Local tax deduction capNo tax on overtime means workers can deduct the extra pay they made on overtime. Up to $12,500 for individuals. Meanwhile, the Senior tax deduction gives seniors an additional $6,000 in tax deductions."It has nothing to do with whether they have Social Security or not," Brooks said, "But anybody that had, or over 65, is entitled to that $6,000 additional deduction. So married filing, couples filing jointly. Couples got 12, $12,000 in deduction."New vehicle interest deduction means if you plan to take out a loan on a U.S.-made car, you can deduct up to $10,000 of the interest you pay on that loan.Tipped worker deduction means workers who earn tips can deduct up to $25,000 from their taxable tip income. The State and Local tax deduction cap is $20,000 for individuals, potentially lowering your federal tax bill.Be sure to file your taxes before the deadline, April 15th.Local News 8 Report by Kaelyn Blessinger ...read more read less
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