• Tip income deduction. For 2025 – 2028, creates an abovethe-line deduction( meaning it’ s available regardless of whether a taxpayer itemizes deductions) of up to $ 25,000 for tip income in certain industries, with income-based phaseouts( payroll taxes still apply). Learn more about this deduction on page 16.
• Qualified overtime pay deduction. For 2025 – 2028, creates an above-the-line deduction of up to $ 12,500 for single filers or $ 25,000 for joint filers for qualified overtime pay, with income-based phaseouts( payroll taxes still apply). Learn more about this deduction on page 16.
• Qualified passenger vehicle loan interest deduction. For 2025 – 2028, creates an above-the-line deduction of up to $ 10,000 for qualified passenger vehicle loan interest on the purchase of certain American-made vehicles, with income-based phaseouts.
• Bonus deduction for senior taxpayers. For 2025 – 2028, creates a bonus deduction of up to $ 6,000 for taxpayers age 65 or older, with income-based phaseouts.
• Itemized deductions. Limits itemized deductions for taxpayers in the top 37 % income bracket, beginning in 2026.
• Trump accounts. Establishes tax-favored“ Trump Accounts,” which will provide eligible newborns with $ 1,000 in seed money, beginning in 2026.
• Adoption tax credit. Makes the adoption tax credit partially refundable up to $ 5,000, with annual inflation adjustments( no carryforwards allowed).
• Clean energy tax credits. Eliminates several clean energy tax credits, generally after 2025, including the clean vehicle, energy-efficient home improvement and residential clean energy credits.
• Affordable Care Act tax credits. Restricts eligibility for the Affordable Care Act’ s premium tax credits.
• Charitable contributions. Creates a permanent charitable contribution deduction for non-itemizers of up to $ 1,000 for single filers and $ 2,000 for joint filers, beginning in 2026. Additionally, the OBBBA imposes a 0.5 % floor on charitable contributions for itemizers, beginning in 2026.
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