New 2025 Non-Itemized Tax Deductions You Need to Know About
- Marc Lowe
- Aug 25, 2025
- 4 min read
Updated: Sep 9, 2025
After 10 years of helping families navigate retirement, there has been a significant increase in attention to taxes after the 2017. Before then, no one really asked about tax planning. But as the years have progressed, the tax changes that have become more frequent have caused the topic of tax planning to become a main topic when meeting with prospects and clients. Taxes change every year, and sometimes those changes bring new opportunities to save. For 2025, the IRS has introduced New Non-Itemized Tax Deductions—special tax breaks you can claim even if you don’t itemize. These could put real money back in your pocket if you qualify so I wanted to highlight these for you.
What Does “Non-Itemized Deduction” Mean?
When you file your taxes, you usually have two main options:
Itemize your deductions. This means you list out specific expenses—like mortgage interest, medical bills, or charitable gifts. Itemizing takes extra work and only makes sense if the total is bigger than the standard deduction.
Take the standard deduction. This is a set amount the government allows everyone to subtract from their income. Most people use this option because it’s larger and easier.
A non-itemized deduction—sometimes called a “below-the-line deduction”—is different.
👉These are extra deductions you can claim even if you take the standard deduction. In other words, you don’t need to go through the hassle of itemizing to benefit.
The New Non-Itemized Tax Deductions for 2025
Here are the new deductions you may be able to claim this year:
Income From Overtime – If you’re putting in extra hours, a portion of that overtime income may qualify for a tax break.
Income From Tips – Service workers who depend on tips can now deduct part of that income.
Vehicle Loan Interest – You may deduct up to $10,000 in interest from a car loan.
Senior Deduction – For those 65 and older, there’s an additional $6,000 deduction per eligible individual.
These are designed to help everyday workers, retirees, and families lower their tax bills without needing complicated paperwork.
Why This Matters
Think of deductions like discounts on your income. The more deductions you qualify for, the less income the IRS taxes, which means you keep more of what you earn.
For example:
If you worked extra shifts last year, you may be able to reduce the amount of overtime the IRS counts as taxable.
If you’re a retiree, that $6,000 senior deduction could help offset other income, like Social Security or pension payments.
If you financed a car, that loan interest deduction could provide meaningful savings—especially for households with higher monthly payments.
The Fine Print
Of course, nothing with taxes is ever completely simple. Each deduction comes with limits and rules about who qualifies. For example, not all car loans count, and deductions on overtime or tips may interact with other credits on your return. That’s why planning ahead is so important.
Tax Planning Is Complex—Get Help
At the end of the day, deductions are only one piece of the tax puzzle. The way your income, retirement accounts, and state taxes fit together can make a big difference in how much you actually pay.
If you’re looking for help navigating these new deductions—and strategies to lower your tax bill overall—we’re here to guide you.
👉 Click the button below to schedule a call and start planning smarter.
About The Author
Marc Lowe is the Founder & President of In The Money Retirement Planning. He is a Certified Financial Planner and member of NAPFA National Association of Personal Financial Advisors, XY Planning Network & Fee-Only Network. He works with retirees and those approaching retirement. He has over a decade of experience helping these folks grow their net worth, organize their finances and build better lives for themselves and their families.
The information presented in this Presentation is the opinion of the author and does not reflect the views of any other person or entity unless specified. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. The information provided is for informational purposes and should not be construed as advice. Advisory services offered through In The Money Retirement, an investment adviser registered with the state of Connecticut. The information linked to on third-party sites is being provided strictly as a courtesy and convenience. When you link to any of the web sites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. When you access these websites, you are leaving our website and assume any and all responsibility and risk for use of the web sites you are visiting.The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
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