Best Books & Taxes, LLC

01/21/2026

12/02/2025

Key Individual Tax Changes
The OBBBA preserves existing income tax rates and makes them permanent.
Standard Deduction: The increased standard deduction amounts are made permanent and slightly raised for 2025 to $15,750 for single filers and $31,500 for married couples filing jointly.
State and Local Taxes (SALT): The cap on the SALT deduction is temporarily raised from $10,000 to $40,000 for tax years 2025-2029, with a phase-out for high-income earners. It is scheduled to revert to $10,000 in 2030.
New Deductions (2025-2028): The act introduces several temporary deductions:
Seniors: A new deduction of up to $6,000 for individuals aged 65 and older, phasing out for higher incomes.
Tips: An above-the-line deduction of up to $25,000 for qualified tip income.
Overtime Pay: A deduction of up to $12,500 ($25,000 for joint filers) for qualified overtime compensation required by the FLSA.
Auto Loan Interest: A deduction of up to $10,000 annually for interest on loans for new U.S.-assembled personal-use vehicles.
Child Tax Credit (CTC): The maximum CTC is permanently increased to $2,200 per child, indexed for inflation from 2026 onward.
Charitable Contributions: Starting in 2026, non-itemizers can take a permanent deduction for cash donations of up to $1,000 (single filers) or $2,000 (joint filers)

10/08/2025

After a five-day reprieve following the initial government shutdown, employees are being notified of widespread service stoppages. But implementation of GOP tax cuts will continue.