WASHINGTON, D.C. — Taxpayers filing 2025 returns will see new deductions for tips, overtime pay, car loan interest, and seniors under updated Internal Revenue Service forms and instructions, while the agency and the Treasury Department also rolled out scam warnings, proposed digital asset reporting changes, new guidance on Trump Accounts, expanded in-person help, and registration for this year’s tax forum.
What This Means for You
- New deductions on 2025 returns may reduce taxable income for eligible workers, drivers with qualifying car loans, and older taxpayers.
- The IRS is warning taxpayers and tax professionals about 12 major scams during filing season, including phishing, fake charities, and identity theft.
- Parents and guardians may be able to open Trump Accounts for eligible children and, in some cases, receive a one-time $1,000 government contribution.
The updates were issued between March 2 and March 6 and touch on a broad range of tax filing, enforcement, and taxpayer assistance issues.
New Tax Breaks Added to 2025 Filing Forms
The IRS said taxpayers will use a new Schedule 1-A for tax year 2025 to claim several deductions created under the One, Big, Beautiful Bill.
The new schedule and related Form 1040 instructions explain how eligible taxpayers can deduct qualified tips, certain overtime compensation, qualified passenger vehicle loan interest, and an enhanced deduction for seniors.
For tips, the IRS said workers may claim a deduction of up to $25,000, with the benefit beginning to phase out when modified adjusted gross income exceeds $150,000, or $300,000 for married couples filing jointly.
For overtime, workers may claim a deduction of up to $12,500, or $25,000 for married couples filing jointly. The deduction also phases out above the same income thresholds.
In both cases, the IRS said taxpayers may claim the deductions whether they take the standard deduction or itemize. Married taxpayers must file jointly to claim the tip and overtime deductions.
Car Loan Interest and Senior Deduction Rules Detailed
The new instructions also explain how taxpayers may deduct interest paid on certain passenger vehicle loans.
The IRS said the guidance defines terms including qualified passenger vehicle loan interest, applicable passenger vehicle, final assembly in the United States, and personal use.
For seniors, the IRS said eligible taxpayers may claim an enhanced deduction of up to $6,000 per person. Married couples filing jointly may claim up to $12,000 if both spouses qualify.
To qualify, the taxpayer must have been born before January 2, 1961, and have a valid Social Security number. If filing jointly, each spouse claiming the deduction must have a valid Social Security number.
The deduction begins to phase out when modified adjusted gross income exceeds $75,000 for single taxpayers or $150,000 for married couples filing jointly.
IRS Warns of 12 Major Tax Scams
The IRS also released its 2026 Dirty Dozen list, an annual roundup of tax scams that target taxpayers, businesses, and tax professionals.
The list is part of a broader anti-fraud effort through the Security Summit, a partnership of the IRS, state tax agencies, and the tax industry. The campaign was also tied to National Slam the Scam Day on March 5.
“Today, Slam the Scam Day, provides a great opportunity to remind everyone to remain vigilant and watch out for scams because thieves continuously adjust the pitches they use to take advantage of honest taxpayers,” IRS Chief Executive Officer Frank J. Bisignano said.
The 12 scams include phishing emails and text messages impersonating the IRS, phone scams using artificial intelligence-generated voices, fake charities, misleading tax advice on social media, identity theft involving IRS online accounts, abusive Form 2439 claims, bogus self-employment tax credit promotions, ghost preparers, inflated non-cash charitable deduction schemes, overstated withholding schemes, spear-phishing attacks aimed at tax professionals, and misleading Offer in Compromise promotions.
The IRS said taxpayers who receive suspicious IRS-related emails or messages should report them to phishing@irs.gov. The agency also said suspected tax fraud and abusive schemes can be reported through its online tip submission tool at IRS.gov/SubmitATip.
Treasury Proposes Easier Electronic Delivery for Digital Asset Forms
On March 5, the Treasury Department and IRS issued proposed regulations that would make it easier for digital asset brokers to provide Form 1099-DA electronically instead of mailing paper statements.
Form 1099-DA reports proceeds from broker transactions involving digital assets, which the agencies said can include certain convertible virtual currencies, cryptocurrency, stablecoins, and non-fungible tokens.
Under current rules, brokers generally must provide paper copies unless a customer affirmatively consents to electronic delivery.
The proposed rules would create an optional alternative process allowing brokers to obtain consent without also offering a paper option or a way to withdraw prior consent. The rules would still require enhanced notice, delivery standards, and ongoing access to statements.
The proposal would apply to statements required to be furnished on or after January 1, 2027.
New Trump Account Guidance Issued for Families
On March 6, Treasury and the IRS issued proposed regulations on Trump Accounts, a new type of individual retirement account for eligible children created by the One, Big, Beautiful Bill, which was enacted on July 4, 2025.
The proposed rules explain how authorized individuals may open initial Trump Accounts using new Form 4547 and how parents or guardians may elect to participate in a pilot program that would provide a one-time $1,000 contribution from the Treasury Department.
To qualify for the pilot program, a child must be born in calendar year 2025, 2026, 2027, or 2028, be a United States citizen, have a Social Security number, and not have had a prior pilot program election processed.
The proposed regulations say the election generally must be made by an individual who expects the child to be his or her qualifying child for that year, typically a parent or guardian.
The IRS said the proposed rules also define who may serve as the responsible party for an account and request public comment on the regulations.
More information is available at trumpaccounts.gov.
IRS Expands In-Person Help During Filing Season
The IRS said it is extending weekly office hours at more than 200 Taxpayer Assistance Centers nationwide through Thursday, April 30.
Many centers will also open on select Saturdays through June 2026, though cash payments will not be accepted during those Saturday hours.
The agency said taxpayers can use the Taxpayer Assistance Center locator on IRS.gov to find locations, directions, services, and information about extended hours.
The IRS encouraged taxpayers to file electronically and use direct deposit for faster refunds and fewer return errors.
Registration Opens for 2026 IRS Nationwide Tax Forum
The IRS also announced that registration is open for the 2026 IRS Nationwide Tax Forum, the agency’s largest annual outreach event for tax professionals.
The three-day forums will be held this summer in Chicago, New Orleans, New York City, Orlando, and San Diego.
The IRS said attendees can earn up to 18 continuing education credits through seminars and workshops led by IRS experts and partner organizations.
Early Bird registration is $275 through June 15. Standard registration will cost $329 after that deadline and continue until two weeks before each event. On-site registration will cost $409.
More information is available at www.irstaxforum.com.
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