Forget the Senior Deduction. The Other OBBBA Tax Breaks Most Workers Are Missing.

When the One Big Beautiful Bill Act (OBBBA) was signed into law in 2025, there was one provision that got a ton of attention — the new senior tax deduction. That deduction is available to seniors ages 65 and over who are moderate or low earners, and it’s worth up to $6,000 per person.

Thanks to the new senior tax deduction, most people 65 and over will no longer have to pay federal taxes on their Social Security benefits. And that, frankly, is huge.

But the $6,000 senior tax deduction wasn’t the only good thing to come out of the OBBBA. The bill included a number of major tax changes that could benefit different groups of Americans. Here are four other provisions of the OBBBA you should know about.

A tax deduction for tipped workers

If you work in the service industry, tips can be a lifeline. And they may also make up the bulk of your income.

The OBBBA now makes tips of up to $25,000 tax-deductible through 2028. This doesn’t mean you don’t have to report tips to the IRS. That’s still a requirement. Rather, now you can deduct those tips up to the aforementioned limit.

Tax deductions reduce your tax liability by exempting a portion of your income from taxes. So all told, this change should lower your taxable income and result in savings.

You should also know that this tax benefit starts to phase out for incomes of $150,000 for single tax-filers or $300,000 for married couples filing jointly.

A tax deduction on overtime pay

Working extra hours could pad your income nicely. And thanks to the OBBBA, you might get a tax break on some of that extra pay.

The OBBBA now allows single tax-filers to deduct up to $12,500 from overtime pay. If you’re married filing jointly, that deduction doubles to $25,000.

However, the deduction for overtime pay has the same phase-out rules as the deduction for tips. And also, like other OBBBA changes, it only applies through 2028.

An auto loan interest deduction

Buying a car can be an expensive prospect, especially since auto loan rates today aren’t cheap. And given that the Fed seems to be pausing rate cuts, there may not be much relief in sight for quite some time.

The OBBBA now offers a deduction of up to $10,000 for interest paid on auto loans for new, U.S.-assembled vehicles. But there are rules.

The deduction phase-out begins at $100,000 of income for single tax-filers or $200,000 for married joint filers. It also only applies to cars with a gross vehicle weight rating of less than 14,000 pounds. And remember, like the perks above, it expires in 2028.

Trump accounts

Trump accounts are available to benefit children under age 18. Any adult can contribute up to $5,000 per year, and there’s no earned income requirement for the child. Employers can contribute up to $2,500 per year toward these accounts.

If you make contributions to a Trump account, they are not tax-deductible like traditional IRA or 401(k) contributions you make. These accounts are invested in U.S. index funds with low fees to promote growth.

Once your child turns 18, Trump accounts are effectively converted to IRAs. At that point, your child can continue to contribute money to their account provided they have earned income.

And there’s more

The OBBBA covered even more than the senior tax deduction and the tax breaks above. It pays to read up on the bills to see what new perks may be hidden in there. It’s also a good idea to talk to your accountant or financial advisor about the ways you can benefit from the OBBBA based on your personal situation.