12/26/2025
Subject: Important Tax Law Changes for Your 2025 Return
Happy New Year!
As we approach another tax season, we want to inform you of several important changes to federal tax laws that may affect your 2025 income tax return(s). The recently enacted legislation, known as the One Big Beautiful Bill Act (OBBBA), has made significant adjustments, including permanently extending many provisions of the 2017 Tax Cuts and Jobs Act and introducing new temporary deductions.
Our goal is to help you stay informed and navigate these changes efficiently to ensure an accurate and optimized tax outcome.
Key Changes You Should Know About for the 2025 Filing Season
• Increased Standard Deduction: The standard deduction amounts have increased for [Tax Year]. For instance, the amount is now $15,750 for single filers and $31,500 for married couples filing jointly.
• New Deductions for Certain Income:
◦ Tip Income: Eligible workers may be able to deduct up to $25,000 of qualified tip income, subject to income limitations.
◦ Overtime Pay: A deduction for a portion of qualified overtime pay is available, also with income limitations.
◦ Car Loan Interest: You may be able to deduct interest up to $10,000 on a loan for a new personal vehicle that was assembled in the U.S., subject to income phaseouts.
• Expanded Child Tax Credit: The maximum Child Tax Credit has increased to $2,200 per qualifying child.
• Higher SALT Cap: For those who itemize and have a modified adjusted gross income (MAGI) below certain thresholds, the State and Local Tax (SALT) deduction cap is temporarily raised to $40,000.
• New Senior Deduction: Taxpayers age 65 and older may be eligible for an additional $6,000 deduction.
• Crypto Reporting: Centralized crypto exchanges are now required to report transactions to the IRS and to you on a Form 1099-DA.
How We Are Here to Help
We are actively working to apply these new rules to your specific situation.
To help us prepare your return efficiently, please gather all necessary documentation as you normally would, including W-2s, 1099s, mortgage statements, and charitable contribution summaries. Please be sure to provide any new forms you receive, such as the 1099-DA for crypto transactions.
We appreciate the opportunity to serve you. If you have any questions about how these changes may impact your unique tax situation, please do not hesitate to call our office at [Your Phone Number] to discuss them further.
We look forward to working with you this tax season.
