$1,000 Charitable Deduction

Taxpayers can deduct up to $1,000 in charitable donations beginning in 2026, regardless of whether they itemize. This is a permanent tax change.

More Taxes on Gambling

Gambling losses capped at 90% (was 100%). Only deductible against winnings.

Moving Expenses

Moving expense deduction permanently repealed (except military/intelligence). Employer reimbursements now taxable.

Casualty Loss Deduction

Deduction limited to federally declared disasters (permanent). Starting 2026, state-declared disasters also qualify.

Home Mortgage Interest Deduction

Beginning in 2026, the Act treats mortgage insurance premiums (PMI) as qualified residence interest.

Trump Accounts

Child savings accounts: $5,000/year limit. Treasury gives $1,000 for kids born 2025–2028. Not deductible; withdrawals taxed.

Deduct Car Loan Interest

Car loan interest: up to $10,000/year (2025–2028). US-assembled only. Phase out starting at 100K

No Tax on Tips

New tip deduction: up to $25,000 (2025–2028) for qualified tips from traditional tipping jobs. Phase-out* Not for all service trades.

Overtime Pay Deduction

Deduct up to $12,500 in overtime pay (2025–2028). $25,000 for joint filers. Will be reported separately on W-2. Phase-out above $150K

State and Local Tax Deduction Limit (SALT)

SALT limit now $40,000 (was $10,000). More may itemize.