Tax Changes for 2025
Key tax rule changes under the One Big Beautiful Bill Act (OBBBA).
Income & Tips
- No tax on tips up to $25,000; phases out at $150,000 of income ($300,000 for MFJ).
- No tax on overtime pay up to $12,500 (Single) / $25,000 (MFJ); phases out at $150,000 ($300,000 for MFJ).
Personal Deductions & Credits
- Additional $6,000 deduction for seniors aged 65 and older.
- Child Tax Credit increased to $2,200 per qualifying child.
- SALT deduction cap increased to $40,000 ($20,000 for MFS); phases out for incomes above $500,000. Please keep goodwill and other donation receipts.
Investments & Savings
- New tax-deferred 'Trump Account' for children: Contributions limited to $5,000 annually. Gov contributes $1,000/child for US citizens born 2025-2028.
- Crypto transactions will be reported using Form 1099-DA.
Vehicle & Energy Credits
- Car loan interest deduction available for certain vehicles; phases out at $100,000 ($200,000 for MFJ).
- Clean Vehicle Credit ended on September 30, 2025.
- Solar tax credit ends on December 31, 2025.
Business
- 100% bonus depreciation restored for qualifying business assets.