Per the notice below, the United States Internal Revenue Service (IRS) has announced that there will be no One Big Beautiful Bill Act (OBBBA) changes for 2025 to tax withholding tables and individual information returns.

IRS announces no changes to individual information returns or withholding tables for 2025 under the One Big Beautiful Bill Act

The Internal Revenue Service today announced that, as part of its phased implementation of the One Big Beautiful Bill Act, there will be no changes to certain information returns or withholding tables for Tax Year 2025 related to the new law.  Key points for TY 2025 relating to OBBBA provisions:

• Form W-2, existing Forms 1099, and Form 941 and other payroll return forms will remain unchanged for TY 2025.
• Federal income tax withholding tables will not be updated for these provisions for TY 2025.
• Employers and payroll providers should continue using current procedures for reporting and withholding.

These decisions are intended to avoid disruptions during the tax filing season and to give the IRS, business, and tax professionals enough time to implement the changes effectively.  For more information visit, One Big Beautiful Bill Act of 2025 Provisions.

Looking ahead to TY 2026

The IRS is working on new guidance and updated forms for TY 2026.  These will include changes to how tips and overtime pay are reported.  The IRS will coordinate with employers, payroll providers, and tax professionals to ensure a smooth transition.  More information will be shared in the coming months about how taxpayers can claim OBBBA-related tax benefits when they file their returns.  The Treasury Department and the IRS are preparing additional guidance for both reporting entities and individual taxpayers.