12/03/2025
Big Tax Changes Coming for 2025
Congress passed new rules that kick in for the 2025 tax year (the return you’ll file in early 2026).
A few highlights:
• Higher standard deduction: $31,500 MFJ, $15,750 single, $23,625 HOH.
• New senior deduction: Extra $6,000 per person age 65+ (up to $12,000 per couple), with income limits.
• “No tax on tips” & overtime deductions: Certain tipped workers and employees with overtime may deduct a portion of that income, up to $25k for tips and $12.5k/$25k for overtime (single/joint), 2025–2028.
• New car loan interest deduction: Up to $10k/year of interest on qualifying new U.S.-assembled vehicles financed in 2025–2028.
• Higher SALT cap: Itemizers can deduct up to $40k of state/local taxes if they’re under certain income limits.
The fine print really matters, especially income thresholds, qualifying jobs, and vehicle rules. If you want to see how the 2025 changes affect your situation, reach out before year-end so we can plan ahead.