What has changed? The “One Big Beautiful Bill” in a nutshell
President Trump signed the bill on July 4, 2025, but its key provisions are retroactive to January 1, 2025 — meaning they apply to the return you are filing now. The IRS expects over 164 million declarations this season, and the average tax refund has already increased by over 10% compared to last year, amounting to approximately $3,800.
The new regulations are not cosmetic — they are real money for millions of workers.
Tip Deduction — Waiters, Bartenders, Drivers
If you work in an industry where tips are the norm — hospitality, food service, transportation — you can deduct up to $25,000 annually from your tip income. At a 24% tax rate, this means up to $6,000 less in taxes.
Conditions: income below $150,000 ($300,000 for couples), tips must be reported on W-2 or 1099. The deduction is valid for years 2025–2028.
For the Polish community, this is a crucial change — thousands of Poles in America work in restaurants, hotels, and as Uber drivers. Many do not know that they can now legally pay significantly less.
Tax-Free Overtime — Overtime Deduction
Do you work in construction, a warehouse, or transportation? New regulations allow you to deduct overtime premium pay — meaning the portion of wages above the standard rate (e.g., the “half” from the “time-and-a-half” formula).
Maximum deduction: $12,500 per person ($25,000 for couples). Income limit: $150,000. The IRS estimates that 17 million taxpayers will benefit from this deduction, with an average saving of approximately $1,400.
For Polish construction workers, electricians, and truck drivers in the USA — this is direct money in their pockets.
Larger Child Tax Credit — $2,200 per child
The Child Tax Credit has increased from $2,000 to $2,200 for each qualifying child. The refundable portion is up to $1,700 — meaning that even if you don’t have a large tax liability, the IRS can pay you the difference.
For Polish families with two or three children, this means an additional few hundred dollars in refunds.
Car Loan Interest — New Deduction up to $10,000
Did you buy a new car manufactured in the USA? You can deduct car loan interest up to $10,000 annually. This applies to vehicles for personal use, assembled in the United States.
Income limit: $100,000 ($200,000 for couples). For a typical $50,000 car loan with a 7% interest rate, the interest in the first year is about $2,500 — and that’s how much you can deduct.
Senior Relief — Additional $6,000
Are you 65 or older? You are entitled to an additional deduction of $6,000, independent of the standard deduction. This applies for years 2025–2028.
Limit: income up to $75,000 ($150,000 for couples). For Polish retirees in the USA, who often live on modest incomes and Social Security, this change genuinely reduces their tax to zero or provides a larger refund.
New Form Schedule 1-A — Don’t forget to file it
All new deductions (tips, overtime, car interest, senior relief) are reported on the new Schedule 1-A form. If you use TurboTax, H&R Block, or have an accountant — make sure your return includes this form. Without it, you will lose the new benefits.
“Trump Accounts” — Savings Account for Children
New for 2026: parents can open a special IRA retirement account for a child. The government deposits $1,000 into the account of every child born between January 1, 2025, and December 31, 2028. Form 4547 is filed with your tax return. More information at trumpaccounts.gov.
Key Dates — Mark Your Calendar
April 15, 2026 — final deadline to file your return and pay taxes. Late filing costs 0.5% per month of the unpaid amount.
October 15, 2026 — extended deadline if you file Form 4868 (but you still must pay taxes by April 15).
Attention: IRS no longer sends paper checks
By presidential order, the IRS is phasing out paper checks for tax refunds. If you don’t have a bank account — open one now to receive your refund via direct deposit. It’s faster and safer.
Where to file in Polish?
Polish accountants and tax offices serving the Polish community operate in every major US city — from Greenpoint in New York to Polish offices on Milwaukee Avenue in Chicago. Look for trusted specialists in the polishpages.com directory, where you will find Polish-speaking tax offices in your state.
Don’t wait until the last day — the sooner you file your return, the sooner you will receive your refund.
Voice of Polonia in the USA — poland.us. We inform about what is important for Poles on both sides of the Atlantic.
Don’t risk errors and unnecessary problems with the IRS.
File your taxes in Polish – calmly, safely, and professionally.
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