09/04/2025
ARE YOU READY FOR TAX SEASON??????
here is some information to help you with that big beautiful bill..lol
Key Provisions Effective in 2025
Child Tax Credit Increased
Credit increased to $2,200 per qualifying child
Refundable portion: $1,400, adjusted annually for inflation
Standard Deduction Increased & Made Permanent
2025 Deduction Amounts:
$15,750 – Single
$31,500 – Married Filing Joint
$23,625 – Head of Household
Additional increases:
$1,500 – MFJ
$1,125 – HOH
$750 – All others
Tip Income Deduction (2025–2028)
Deduct up to $25,000 in qualified cash tips
Applies to service industry occupations
Phase-out at $150,000 AGI ($300,000 for MFJ)
Overtime Pay Deduction (2025–2028)
Deduct up to $12,500 ($25,000 for MFJ) of the premium portion of OT pay
Same income phase-outs as above
Senior Deduction (2025–2028)
Additional $6,000 deduction for taxpayers age 65+
Phase-out begins at $75,000 AGI ($150,000 MFJ)
Qualified Car Loan Interest Deduction (2025–2028)
Deduct up to $10,000 in interest on new, personal-use vehicles
Final assembly must be in the U.S.
VIN required on the tax return
Available without itemizing
Phases out at $100,000 AGI ($200,000 MFJ)
State and Local Tax (SALT) Deduction Cap Increased
New cap: $40,000
Begins phasing down at $500,000 AGI
Cap increases 1 percent annually through 2029
Clean Vehicle Credits Expire September 30, 2025
Includes new, used, and commercial clean vehicle credits
Adoption Credit Made Partially Refundable
Up to $5,000 of the credit will now be refundable
Bonus Depreciation Returns
100% bonus depreciation available for property acquired after January 19, 2025
Provisions Effective in 2026
Charitable Deduction for Non-Itemizers
$1,000 (Single) or $2,000 (MFJ) allowed for cash donations
Expiration of Energy Credits
Energy Efficient Home Improvement and Residential Energy Credits end in 2025
Premium Tax Credit Repayment
All overpaid subsidies must be repaid, regardless of income
Itemized Deduction Limits Return for High-Income Taxpayers
Limits reintroduced for those in the highest income bracket
Child and Dependent Care Credit Expanded
Eligible expense reimbursement raised to 50% (minimum 35% based on income)
Trump Accounts Introduced
Tax-free savings account for children under 18
$5,000 annual limit per child
Funds may be used for education, credentialing, starting a business, or buying a home
One-time $1,000 government contribution for eligible children born 2025–2028
1099 Threshold Increased
Form 1099 reporting threshold rises to $2,000, adjusted annually
Wagering Loss Deduction Tightened
10% reduction required before applying limitation
Provisions Made Permanent
Mortgage interest deduction remains capped at $750,000
Casualty losses only for federally declared disasters
Miscellaneous itemized deductions permanently eliminated
Moving expense deduction restricted to military and, beginning 2026, intelligence community members
Increased ABLE Account contribution limits made permanent
