Important Tax Updates for This Tax Season

Tax season is here, which means it’s time to start thinking about filing your 2025 taxes. Before you start, we’re here to make sure you’re up to date on some of the significant changes that have happened over the past year that could affect your tax return.

In this article, we’re going to provide you with a list of a few things that have changed and a few things that are carrying over from the previous tax season.

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Here’s a list of a few IRS updates and recent congressional acts and their tax implications affecting your 2025 taxes and beyond:

IRS Per Diem Rates for the Transportation Industry

The per diem deduction for meals and incidental expenses increased to $80 per full day and $60 per partial day as of October 1st, 2024, and the rate remains in place in 2025. The IRS allows for an 80% deduction of the above amounts. If you are tracking per diem, this means under the new rules the deduction for a full day has increased to $64, and the deduction for a partial day has increased to $48.

One Big Beautiful Bill Act (OBBBA)

The One Big Beautiful Bill Act was signed into law on July 4, 2025. To the average self-employed truck driver, this act in many ways will have little to no effect on the way you conduct your business currently. However, it does provide new opportunities for tax savings and things to watch out for over the next several years.

Climate-Related Tax Credits

Federal EV tax credits for new and used vehicles expired for purchases after September 30, 2025, under the OBBBA. Buyers who signed binding contracts and made payments on qualifying new or used EVs by that date may still claim the credit (up to $7,500 new, $4,000 used) on their 2025 tax returns, even if delivery was later. After September 30, 2025, these federal incentives are gone, but state/local programs and leased vehicle options (which have different rules) might still be available.

For 2025, homeowners can claim two main federal energy tax credits expiring December 31st: the Energy Efficient Home Improvement Credit (up to $1,200 annually for windows, insulation, etc., plus an extra $2,000 for heat pumps/biomass) and the Residential Clean Energy Credit (30% for solar, wind, geothermal, batteries). Both credits are nonrefundable, but the Residential Clean Energy Credit allows carrying forward unused amounts. You can claim the credit for improvements made through December 31, 2025.

Health Insurance and Care

OBBBA will return subsidies and repayment caps for the Affordable Care Act to pre-American Rescue Plan Act levels beginning in 2026. Owner-operators in need of health insurance can search the Federal Marketplace to see if they qualify for a subsidy. Be careful when applying for a subsidy to make sure your income levels qualify.

Increase in SALT Deduction for Itemizers

The OBBBA increases the State and Local Tax (SALT) deduction cap significantly to $40,000 for itemizers (up from $10,000) starting in 2025 through 2029. This provides substantial relief, especially for those in high-tax states, but it phases out for incomes above $500,000 and reverts to $10,000 in 2030. The change encourages more taxpayers to itemize, and the full benefit applies only if total itemized deductions exceed the standard deduction.

Bonus Depreciation

Beginning in 2025, the OBBBA restores your business’s ability to take an immediate first-year deduction on any asset purchased during the year. For any qualified property purchased and placed in service after January 19, 2025, you will be able to depreciate 100% of the cost of the property in that year. Assets purchased and placed in service January 1-19, 2025, will only qualify for the previous 40% bonus depreciation.

Student Loan Interest Deduction Adjusted for Inflation

You may be able to deduct up to $2,500 of student loan interest paid. The deduction is subject to income limitations, which have gone up for 2025. For joint filers, the deduction begins to phase out with a modified AGI of $170,000 and reduces to zero at $200,000. For single and head of household filers, the phaseout begins at $85,000 and reduces to zero at $100,000. For those married filing separately, the deduction is not allowed.

Dependent Care Credit

The One Big Beautiful Bill Act (OBBBA) significantly changes dependent care benefits starting in 2026, primarily by increasing the Dependent Care Flexible Spending Account (FSA) limit to $7,500 (from $5,000) and expanding the Child and Dependent Care Tax Credit (CDCTC), making it more generous for lower and middle-income families with a tiered system up to 50% credit, alongside boosting employer tax credits for offering childcare. These updates aim to make childcare more affordable through both pre-tax employee savings and direct tax relief for families and employers.

1099-K

The 1099-K is likely not going to affect the trucking business per se, but if your spouse has a business or you have a side business you may see one this year. Many platforms such as eBay, Venmo, Zelle, and Etsy, to name a few, will potentially be issuing these forms. The threshold for issuing 1099-Ks has been restored to the previous threshold of $20,000 and 200 transactions.

Additional Deductions

Additional Deductions is a new form for 2025-2028 tax years, created by OBBBA to claim four new below-the-line deductions: no tax on tips, no tax on overtime, no tax on car loan interest, and an enhanced deduction for seniors (age 65+), which reduces taxable income without affecting Adjusted Gross Income (AGI). Taxpayers use it to calculate these specific deductions, even if they itemize on Schedule A, to lower their overall tax burden.

Key Deductions on the new Schedule 1-A

• No Tax on Tips: A deduction for qualified cash tips up to $25,000, regardless of filing status, for specified occupations.

  
  

• No Tax on Overtime: A deduction for overtime pay up to $12,500 (single filers) and $25,000 (joint filers); however, most drivers will not qualify for this deduction.

  
  

• No Tax on Car Loan Interest: A deduction for up to $10,000 on interest paid on qualifying car loans for new cars assembled in the United States.

  
  

• Enhanced Deduction for Seniors: An increased deduction of $6,000 (single filers) and $12,000 (joint filers) for individuals aged 65 and over.

The bottom line is that being aware of these changes can potentially save you money on your taxes. Many of these changes could be temporary, so make sure you’re taking advantage of them now while they are available. If you have any questions, feel free to give us a call at (303) 218-2827 or email us at info@atbs.com.

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