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📢 2025 Tax Year Update
Quick Guide to the New Tax Laws
As the 2025 tax season approaches, several important changes are now in effect under new federal tax legislation. Here’s a fast, easy-to-read overview of what taxpayers need to know.
As the 2025 tax season approaches, several important changes are now in effect under new federal tax legislation. Here’s a fast, easy-to-read overview of what taxpayers need to know.
Higher Standard DeductionÂ
Higher Standard DeductionÂ
Single: $15,750Â
Head of Household: $23,625
Married Filing Jointly: $31,500
Higher SALT Deduction CapÂ
Higher SALT Deduction CapÂ
State and local tax deduction cap increased to $40,000 (or $20,000 MFS), though high-income phaseouts may apply.Â
New Senior Bonus DeductionÂ
New Senior Bonus DeductionÂ
Taxpayers 65+ may claim an additional $6,000 (or $12,000 for qualifying couples), whether they itemize or not.Â
Increased Child Tax CreditÂ
Increased Child Tax CreditÂ
The Child Tax Credit increases to $2,200 per qualifying child.Â
Expanded Deductible IncomeÂ
Expanded Deductible IncomeÂ
Tips: Up to $25,000 deductible for qualified tipped workers
Overtime: Up to $12,500 (single) or $25,000 (joint)
Car-Loan Interest: Up to $10,000 for qualifying U.S.-assembled vehicles
What This Means for You
What This Means for You
Many taxpayers will see lower taxable income thanks to higher deductions.
Seniors gain significant savings through the new bonus deduction.
Tip and overtime workers should maintain accurate income records.
Families with dependents may see a larger refund or reduced tax bill.
Quick Action Steps
Quick Action Steps
Review your 2025 income and withholding.
Track tips and overtime pay carefully.
Keep documentation for any vehicle purchase financed in 2025.
Verify dependents and filing status for maximum credits.
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