What you will need to file your taxes under the One, Big, Beautiful Bill

FS-2026-05, March 2026

New deductions created by the One, Big, Beautiful Bill do not change how taxpayers file their returns. They change what information taxpayers must include. This fact sheet outlines the records and documents needed to claim new OBBB deductions for the 2025 tax year.

The basics

All taxpayers will need:

• Social Security number for themselves, their spouse, and their dependents
• 2025 income documents, including Form W-2 and Form 1099
• Bank account and routing number for direct deposit
• Records of estimated tax payments, if applicable

Credits and deductions (if they apply)

Depending on eligibility, taxpayers may need:

• Childcare expenses and provider information
• Education or tuition statements
• Student loan interest statement
• Mortgage interest statement
• Charitable donation records
• Medical expense records, if itemizing

New OBBB deductions

New deductions are reported on Schedule 1-A PDF, which a taxpayer attaches to Form 1040, Form 1040-SR, or Form 1040-NR. The total amount from line 38 on Schedule 1-A will transfer to Form 1040, line 13b (line 13b on Form 1040-SR or line 13c on Form 1040-NR).

Qualified Tips Deduction

Taxpayers claiming this deduction will need:

• Social Security number valid for employment of the individual receiving qualified tips
• 2025 Form W-2, 2025 Form 1099-MISC, 2025 Form 1099-NEC, or 2026 Form 1099-K
• Tip records for 2025, such as daily or weekly tip logs, employer reports, point-of-sale summaries, invoices
• Tip records from each employer, if you changed jobs or held more than one tipped job, or from each client or customer if you’re an independent contractor

Self-employed and independent contractors may need:

• Schedules C, E, and F
• Schedule 1 lines 15-17
• Form 1099-NEC, Form 1099-MISC, or Form 1099-K

Reported on: Schedule 1-A, Part II – No Tax on Tips.

Reminder: Only tips that were voluntarily given or paid and for which the taxpayer has records, generally qualify. Forms W-2 and Forms 1099 will not separately report qualified tip amounts for 2025, so it will be important to maintain accurate records that support the amounts claimed on the return. While tip amounts will not be reported separately, the tip amount must be included in the total amounts reported on these forms in order for the tip to be eligible for the deduction.

Qualified Overtime Deduction

Taxpayers claiming this deduction will need:

• Social Security number valid for employment of the individual receiving qualified overtime compensation
• 2025 Form W-2, 2025 Form 1099-MISC, or 2025 Form 1099-NEC
• Pay stubs or payroll summaries showing overtime pay
• Records from each employer, if you changed jobs or held more than one job with overtime pay

Reported on: Schedule 1-A, Part III – No Tax on Overtime.

Reminder: While qualified overtime amounts will likely not be separately identified on 2025 Forms W-2 and Forms 1099, the overtime amount must be included in the total amounts reported on these forms in order for the qualified overtime to be eligible for the deduction. Taxpayers should retain payroll records to complete this deduction accurately.

Qualified Passenger Vehicle Loan Interest Deduction

Taxpayers claiming this deduction will need:

• A lender statement showing qualified passenger vehicle loan interest paid in 2025
• Vehicle identification number and purchase details
• Documentation showing the loan is for the purchase of an “applicable passenger vehicle,” for personal use, a vehicle that:
  • Had its original use begin with the taxpayer (used vehicles do not qualify)
  • Is a car, minivan, van, SUV, pickup truck or motorcycle
  • Has a gross vehicle weight rating of less than 14,000 pounds
  • Completed final assembly in the United States

What qualifies: Individuals may deduct up to $10,000 of qualified passenger vehicle loan interest annually for tax years 2025 through 2028. Lease payments do not qualify.

Reported on: Schedule 1-A, Part IV – No Tax on Car Loan Interest.

Enhanced Senior Deduction

Taxpayers claiming this deduction will need:

• Date of birth
• Social Security number
• Income documents affecting eligibility or modified adjusted gross income

Reported on: Schedule 1-A, Part V – Enhanced Deduction for Seniors.

Important reminders before filing

• OBBB deductions are available whether or not a taxpayer itemizes.
• 2025 Forms W-2 or 1099 will not separately identify tips or qualified overtime.
• Taxpayers should keep detailed records to support amounts reported on Schedule 1-A.
• These deductions are temporary and apply for tax years 2025 through 2028.