One Big Beautiful Bill: How to Claim the New Deductions for 2025 Taxes

Tax season might feel far away, but 2025 is bringing some fresh opportunities to lower your tax bill — if you know what to look for. The One Big Beautiful Bill Act, signed into law on July 4, 2025, includes new deductions that could help working Americans, families, and retirees keep more of what they earn.

At Velin & Associates, Inc., we help YouTubers, Shopify store owners, filmmakers, TikTokers, dentists, Amazon sellers, and other professionals in Los Angeles navigate every deduction they’re legally entitled to. Below are two more key tax breaks you should know about now — so you can plan ahead and save.

1. “No Tax on Car Loan Interest” Deduction (2025–2028)

Who benefits: Everyday taxpayers buying a new personal vehicle for personal use — not for business or commercial use.

Key benefit: Deduct up to $10,000 per year in car loan interest.

Important details:

• The loan must be originated after December 31, 2024.
• The car must be new (you are the first owner).
• Must be a car, van, SUV, pick-up truck, or motorcycle under 14,000 pounds, assembled in the U.S.
• The loan must be secured by a lien on the vehicle.
• You must include the Vehicle Identification Number (VIN) on your tax return.
• The deduction phases out for incomes above $100,000 ($200,000 for joint filers).

Examples:

• A dentist buys a new SUV for commuting to their practice — if it’s not used as a business vehicle, they can deduct up to $10,000 in interest.
• A Shopify store owner purchases a new family car for personal errands — loan interest could be deductible.
• A filmmaker buys a pickup to tow a boat for weekend trips — if the truck is mainly personal-use, the interest qualifies.

2. Extra Deduction for Seniors (2025–2028)

Who benefits: Individuals 65 and older.

Key benefit: A new $6,000 deduction — in addition to the existing senior standard deduction. Couples where both spouses are 65+ can claim $12,000 total.

Requirements:

• You must be 65 or older by the end of the year.
• Income phases out over $75,000 ($150,000 for joint filers).
• You must include the qualifying person’s Social Security Number.
• Married seniors must file jointly to claim the full deduction.

Example:

• A retired couple in Los Angeles, both age 68, can add $12,000 more to their standard deduction — possibly lowering their taxable income and moving them into a lower bracket.

Plan Now — Save Later

Tax law changes like these can put real money back in your pocket — but only if you plan ahead and file correctly. From vehicle deductions to senior tax breaks to the special rules for tips, overtime, and online income, our team at Velin & Associates, Inc. is here to help you make the most of every credit and deduction available.

Ready to plan smarter? Call us today: 323-902-1000

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Email: dmitriy@losangelescpa.org

Velin & Associates, Inc. — The trusted CPA for YouTubers, Shopify store owners, Amazon sellers, filmmakers, dental practices, medical professionals, large and small businesses, and successful entrepreneurs across Los Angeles.