08/08/2025
🚨 2025 Tax Update – What’s Really Changing (and What’s Not!) 🚨
From Your Tax Professionals at ABS 📊💼
There’s a lot of buzz about the new One Big Beautiful Bill Act (OBBB) signed July 4, 2025 — but here’s the real scoop for you and most Americans:
📈 Deductions, Brackets & Rates
✅ Rates: No change from 2024 — even capital gains stay the same.
✅ Brackets: Slightly higher, so you can earn a bit more before moving up.
✅ Standard Deduction 2025: $15,750 (single) | $31,500 (married).
✅ Itemized Deductions: Still available if they total more than your standard deduction.
• Medical: Same as 2024, must be large to deduct.
• Taxes: Big change! Limit jumps to $40,000 (up from $10,000).
• Mortgage Interest, Charitable Gifts, Gambling Losses: Same as 2024.
👵 Senior Bonus Deduction: Extra $6,000 per filer age 65+ ($12,000 if both). Phases out at $75K single / $150K married.
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🚗 New & Notable Deductions (on top of your standard deduction)
• Car Loan Interest: New US-assembled car bought in 2025–2028. Phases out $100K single / $200K married.
• Tip Income: Deduct up to $25K (W-2 or self-reported tips). Phases out $150K single / $300K married.
• Overtime Pay: Deduct up to $12,500 per person. Same phase-outs as tips.
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💳 Tax Credits
• Child Credit: Now $2,200 (up from $2,000).
• Energy Credits: Electric car credit ends 9/30/25; home energy upgrades end 12/31/25.
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💡 Planning Tip: Some bigger changes start in 2026 — so let’s plan ahead!
