2025 Standard Deductions have been raised to the following :
If you receive tips, up to $25,000 of qualified tips are deductible.
It begins to phase out if you have a MAGI (modified adjusted gross income) over $150,000 ($300,000 for married filing jointly).
If you had overtime in 2025, bring in your last paystub, along with your W-2.
A deduction on the premium portion of qualified overtime is deductable (the “half time portion” of “time and a half”) of your overtime.
Up to $12,500 for single filers and $25,00 for joint filers.
MAGI phaseouts apply.
New $6,000 deduction for those that are 65 and older.
This is per person, in addition to your standard deduction .
There Is a deduction of up to $10,000 for interest paid on a new vehicle.
The vehicle must have been assembled in the U.S. and be for personal use only.
You will need to bring in your auto loan interest along with the vehicle‘s VIN.
Has increased to $2,200 per qualifying child under age 17, with up to $1,700 of that being refundable.
Tax credits for EVs are eliminated for vehicles acquired after September 30, 2025.
All residential energy credits expired at the end of 2025.
IRA contribution limitations are $7,000 with an additional $1,000 for those 50 and older.
The limit for 401K contributions is $23,000 and $31,000 for those age 50 and older.
New type of investment account available for children born in 2025.
This account is scheduled to receive $1,000 in seed funding. You will need to have us file an IRS Form 4547.
The accounts are expected to be active on July 5, 2026.
The money is invested in the US Equity Index Funds.
Your child cannot access this money until they are 18, and only for specific reasons like starting a business, buy in a home or paying tuition.
You will have the option to add funds to these accounts, up to $5,000 annually.
100% bonus depreciation allowed for certain business property acquired and place in service on or after Jan. 19, 2025.
1099-K threshold raise to $20,000 and 200 transactions.
Crypto reporting will be reported on a new 1099-DA form issued for digital asset transactions.