With lots of fanfare and media buzz, the tax legislation promised since the elections has officially passed and been signed into law. Nicknamed the One Big Beautiful Bill (OBBB), these 2025 tax changes for healthcare travelers include a few shiny gems that everyone on the move should definitely take a peek at. Most of these laws apply retroactively to January 1, 2025.
Here’s what’s in it for you—especially if you’re constantly on the move. Want the deep-dive version? Head over to www.traveltax.com!
2025 Tax Changes for Healthcare Travelers: What to Know
1. Mortgage Insurance Premiums Are Back 💰
Remember when mortgage insurance premiums were deductible? Well, they’re making a comeback! If you itemize deductions and have mortgage insurance, this adds some extra value to your mortgage interest deduction.
2. No More Itemizing Just to Be Charitable 💝
Good news: you can now deduct donations even if you don’t itemize. That’s right—charitable contributions are allowed up to $1,000 for singles and $2,000 for joint filers without the extra math.
3. Big Win for High-Tax State Folks: SALT Cap Increase 🧂
The State and Local Tax (SALT) deduction jumps from $10K to $40K. If you live in a high-tax state or pay high real estate taxes (looking at you, coastal cities), this could make itemizing more worthwhile—and possibly reduce your tax bill.
4. A Boost to the Child Credit 👶
The child tax credit is getting a $200 raise, bringing it up to $2,200. Every little bit counts, especially for families on the road.
5. OT Tax Deduction for Travelers 💼
Travelers who work overtime, listen up: for those making under $100K (single) or $200K (joint), OT premiums up to $12,500 are now deductible from income taxes.
A few fine print details:
- Only the OT premium (not base pay after 40 hours) is deductible.
- Still subject to Social Security and Medicare taxes.
- State-level OT overrides don’t impact this—it only applies to federal OT rules.
6. Auto Loan Interest Is Deductible (Yes, Really!) 🚗
Buying a car between 2025 and 2028? You can now deduct up to $10K in auto loan interest—but only for vehicles assembled in the U.S.
Fun fact: this was common pre-1986 and is still a thing in Puerto Rico!
7. More Flexibility with 529 Plans 🎓
529 Educational Programs just got more traveler-friendly! These funds can now be used for:
- Homeschool expenses
- Trade schools
- Apprenticeships
Great news for RV-traveling families who homeschool on the go.
8. Green Energy Credits Are Ending ⚡
Thinking about going solar or snagging an EV? Move fast:
- EV credits end Sept 30, 2025
- Home improvement/solar credits end Dec 31, 2025
Buy now or wait and see if post-credit prices drop.
9. Student Loan Changes on the Horizon 🎓
For student loans granted after July 2026, a few big changes:
- No more income-based repayment options
- Annual loan limits based on degree type
- Filing separately to reduce repayments? That option is phasing out too
10. Federal ≠ State: Be Ready for Gaps 🗺️
Important reminder: All of these are FEDERAL changes.
Most states do use parts of the federal return to calculate their own taxes, but not always. Some states may conform automatically, while others will pass new laws to match.
👉 This creates a growing gap between federal and state tax law—something all multistate travelers should keep an eye on.
Wrapping It Up 🎁
These tax changes for healthcare travelers might not sound thrilling—but when they affect your wallet, they matter. The OBBB includes some surprising wins for travelers and their unique lifestyles. Bookmark this, plan ahead, and when in doubt, check in with your tax pro!
For the full breakdown and ongoing updates on the tax changes for healthcare travelers, visit www.traveltax.com.
Staying on top of tax changes is just one way to protect your paycheck.
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