The IRS building in Washington on July 21, 2025. Madalina Kilroy/The Epoch Times
Posted on 08/11/2025 8:50:30 PM PDT by SeekAndFind
There will be no changes to individual information returns or withholding tables for the 2025 tax year while the IRS implements the One Big Beautiful Bill Act (OBBB) in a phased manner, the agency said in an Aug. 7 statement.
The IRS building in Washington on July 21, 2025. Madalina Kilroy/The Epoch Times
Information returns are documents that businesses must file with the IRS, reporting transactions such as wages paid to employees. The IRS’s withholding tables describe how much an employer must withhold from an employee’s paycheck for taxes, Social Security, and Medicare.
The OBBB was signed into law by President Donald Trump on July 4 and included certain provisions related to taxes.
The IRS clarified that information return forms such as forms W-2, 1099, and 941 “will remain unchanged” for tax year 2025. The federal income tax withholding tables will not be updated with OBBB provisions, the agency said.
“These decisions are intended to avoid disruptions during the tax filing season and to give the IRS, business, and tax professionals enough time to implement the changes effectively,” the agency said.
The IRS asked employers and payroll providers to continue using existing procedures when it comes to reporting and withholding taxes.
As for tax year 2026, the IRS said it was working to update forms and develop new guidance.
The new changes will include how overtime pay and tips are reported. The IRS said it plans to coordinate with payroll providers, tax professionals, and employers to ensure a smooth transition to the new rules.
Although there is no change in information returns or withholding tables, the OBBB has multiple provisions providing tax relief for Americans effective this year.
For one, the OBBB eliminates taxes on tips, according to a July 14 statement from the IRS.
Employees and self-employed individuals can deduct tips from their tax returns, provided their occupations are listed by the IRS as customarily receiving tips. The IRS must publish a list of these occupations by Oct. 2.
The maximum annual deduction allowed in this case is $25,000, which phases out for taxpayers whose modified adjusted gross income is more than $150,000.
Secondly, the OBBB eliminates taxes on overtime.
“Individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay,” the IRS said.
The maximum overtime deduction for a taxpayer is $12,500 per annum, which is phased out as income rises.
To claim the deduction, taxpayers are required to include their Social Security numbers on their tax returns. Married individuals must file jointly to claim the deduction. For joint filers, it goes up to $25,000.
Third, the car loan interest tax has been canceled by the OBBB.
“Individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria,” the IRS said, adding that lease payments do not qualify for this benefit.
To be considered a qualified deduction, the interest must be on a loan that originated after Dec. 31, 2024. The vehicle must have undergone final assembly in the United States.
Fourth, Americans aged 65 and older can claim a tax deduction of $6,000, which is in addition to the existing standard deduction for this demographic. The deduction phases out for seniors with a modified adjusted gross income of more than $75,000.
These four tax relief provisions are effective from 2025 through 2028.
For fiscal year 2024, which ran from Oct. 1, 2023, to Sept. 30, 2024, the IRS collected more than $5.1 trillion in revenues, a roughly 9 percent increase from the previous fiscal year.
This was the first time that the agency’s collections crossed the $5 trillion mark.
“The IRS processed more than 266 million returns and other forms from individuals, businesses, and tax-exempt organizations; received almost 4.6 billion information returns; and issued close to $553 billion in refunds to individual and business taxpayers during FY 2024,” the agency said.
The IRS is slated to get a new chief after Trump replaced commissioner Billy Long, a White House official told The Epoch Times. Long was confirmed to the post less than two months ago.
Long said he will now act as U.S. ambassador to Iceland.
“It is [an] honor to serve my friend President Trump and I am excited to take on my new role as the ambassador to Iceland,” Long said in an Aug. 8 post on social media platform X.
“I am thrilled to answer his call to service and deeply committed to advancing his bold agenda. Exciting times ahead!”
Treasury Secretary Scott Bessent will serve as acting commissioner of the IRS.
Andrew Moran contributed to this report.
This is resistance in the IRS to law.
Where is my No Tax on SS?
Looks like only refers to tables.
It’s funny…no tax on SS means some deductions. No tax on tips. Except if you make some good money. No tax on overtime…as long as it isn’t A LOT of overtime.
True government. They say one thing. The law says something else. And they tell you that you should be happy they are lying, and that you are an ungrateful prol.
RE: Where is my No Tax on SS?
Trump’s promise of “no taxes on Social Security” under the One Big Beautiful Bill Act (OBBB) has been partially fulfilled—but not in the way many expected.
he OBBB created a new federal income tax deduction for seniors aged 65 and older:
• $6,000 for individuals
• $12,000 for couples filing jointly
• Full deduction available for incomes up to $75,000 (individual) or $150,000 (joint)
• Phases out above those thresholds and disappears entirely at $175,000/$250,000
So, The bill does not eliminate the taxation of Social Security benefits. It simply reduces taxable income through the new deduction.
The administration says 88% of seniors will pay no federal tax on their Social Security benefits due to the deduction.
The deduction helps some additional seniors, but mostly those in middle-income brackets. Higher-income seniors still face taxes on Social Security, albeit reduced.
CAVEAT: The deduction is only valid for tax years 2025–2028. Without renewal, the old rules return in 2029, which means Seniors FACE A TAX INCREASE after Trump leaves office, unless say, JD Vance becomes President and the Congress he has to deal with extends the bill or makes it permanent.
bookmark.
Whole offices full of IRS employees are about to hit the unemployment line.
DJT doesn’t take passive resistance that counters some of the intent of SIGNED law very well.
The parliamentarian ruled since taxing SS was instituted NOT using the reconciliation budget process (regular order bill and law), it could not be removed via the reconciliation budget process.
The Republicans did almost the next best thing and neutered the tax on SS with an offset. The end result is about the same in your wallet as if it was removed.
And I think that all of the “no tax” rules sundown in a relatively short time. (IDK if true.) If so, it’s just a bandage, really.
When I decide to fully retire around the age of 57 or 59 (my wife already retired at 55), over half of our investments will be in Roth IRA’s. When I do our withdrawals from investments, I can choose how much will come from tax deferred money (pay taxes on withdrawals) and how much comes from Roths (no taxes). At current tax brackets, for a while I’ll be in the 12% one, withdrawing from only tax deferred, and converting chunks to Roths. Eventually it’ll all be in Roths before I turn 65.
In the end we’ll be multimillionaires (not that that means a lot these days) with tax free growth/income in Roths, paying taxes on only SS, and qualifying for the new age 65 standard deduction. (Assuming no changes in tax rules by then.)
As long as the tax code and IRS exist in their present form, this is not a free country.
Good analysis. None of us will really know until we do our taxes. I am not sanguine. Either way, the tax code is the most diabolical wealth confiscation crime ever imposed on a people.
“This is resistance in the IRS to law.”
Nope - we still benefit from the tax breaks - it’s just the withholding tables - means some folks will get larger refunds than if the withholding tables had been “pared down”...
So many fail to grasp reality and get their dander up for no reason - no wonder the Dems still hold such sway.
The rates were made permanent. We should celebrate that at least.
Any refund from the government means you gave the government an intrest free loan
No one will say the were getting any tax breaks.
“ Fourth, Americans aged 65 and older can claim a tax deduction of $6,000, which is in addition to the existing standard deduction for this demographic. The deduction phases out for seniors with a modified adjusted gross income of more than $75,000.”
So, how much is the standard deduction for taxpayers 65+?
Is the $6000 added to the standard deduction or is it reported as a separate line?
Thank you for your attention to this matter.
They always sundown the good stuff. Horrible laws stay in effect for generations.
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