Riedel-Hogan CPA

S.A.L.T.

The State and Local Tax (SALT) itemized deduction limit has increased from $10,000 to $40,000 for tax year 2025. This expanded deduction may substantially benefit higher-income taxpayers who previously could not itemize. Be sure to inform your tax preparer of any state or local tax payments you made outside of withholding reported on your Form W-2, as these may now be deductible.

With wait times as long as 2 hours, this is an amazing way to research issues with the IRS.

Sign up now for an Online Account and have access to your tax information and all the tools you’ll need throughout filing season, without phone calls or wait times. Visit: www.irs.gov/accounts

Here is a clear, up-to-date summary of the Child Tax Credit (CTC) and related dependent credit rules for tax year 2025 (the return you will file in 2026), based on the IRS guidance and tax policy updates:

If you have a dependent 16 years old or younger who meets the qualifying child requirements, you can claim up to $2,200 of CTC for that child. ([IRS][1])

If you have a dependent 17 years or older (or other dependents who are not qualifying children), you generally can claim up to $500 under the Credit for Other Dependents. ([IRS][2])

Detailed eligibility rules (relationship, residency, income limits, support tests, SSN/ITIN considerations) and how to calculate refundable amounts are available in IRS instructions and the CTC forms (e.g., IRS Schedule 8812). ([IRS][1])

[1]: https://www.irs.gov/credits-deductions/individuals/child-tax-credit?utm_source=chatgpt.com "Child Tax Credit | Internal Revenue Service"
[2]: https://www.irs.gov/newsroom/understanding-the-credit-for-other-dependents?utm_source=chatgpt.com "Understanding the Credit for Other Dependents"
[3]: https://taxpolicycenter.org/briefing-book/what-child-tax-credit?utm_source=chatgpt.com "What is the child tax credit?"

Be mindful of the timing of charitable donations. Beginning in 2026, taxpayers who do not itemize will be allowed to deduct up to $1,000 (single filers) or $2,000 (married filing jointly) for cash contributions to qualified charities. If you expect not to itemize your deductions, consider waiting until January 1, 2026, to make your contribution so it qualifies for this new above-the-line deduction.

Warm holiday wishes from Riedel-Hogan CPA! May your spreadsheets stay tidy, your receipts stay findable, and your cookie consumption remain… non-deductible but absolutely justified.

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