11/28/2025
Ten important tax changes are hitting in 2025. Most people won’t notice them. But the smart ones will save a lot of money by understanding them.
First, the standard deduction is going up.
If you're single, it’s fifteen thousand seven hundred fifty dollars.
If you're married, it’s thirty-one thousand five hundred dollars.
This means most people no longer need to itemize. If your expenses don’t cross that limit, stop stressing about receipts.
Second, parents get a bigger Child Tax Credit.
It increases to twenty-two hundred dollars per qualifying child.
If your child has a Social Security Number, your refund just grew.
Third, seniors get more deductions.
If you’re sixty-five or older, the IRS gives you an additional deduction on top of the standard one.
A lot of seniors forget to claim this. Don’t.
Now for business owners.
Bonus depreciation is back at one hundred percent.
Buy equipment this year? You can deduct the entire cost in the same year. Laptops, cameras, machinery — all of it.
Section one seventy-nine also increased.
Businesses can now deduct up to two point five million dollars worth of equipment instantly.
If you’re upgrading your office or tools, this is your moment.
Freelancers, consultants, and LLC owners — listen carefully.
The twenty percent Qualified Business Income deduction is still available.
If you earned one hundred thousand, you may only pay tax on eighty. If your accountant isn’t using this, that’s a problem.
Tax brackets shift again in 2026.
Check where your income falls.
You may need to adjust your withholding now so you don’t get a surprise bill next April.
Two warnings.
Number one: You cannot claim the Child Tax Credit if your child only has an ITIN. They need a Social Security Number.
Number two: Timing matters for equipment purchases. Buy before the cutoff date or you’ll lose the bigger deduction.
And finally, remote workers get a better home-office deduction.
Measure your work area, calculate the percentage of your home, and deduct part of your rent, utilities, and internet.
