01/01/2026
Happy New Year!
Reminder - now is the time to start getting your tax papers together.
Some reminders on the changes with the Big Beautiful bill:
If you worked overtime, you will need to ask your employers for the total half-time overtime dollars you made. Example - overtime is 1-1/2 times your normal rate of pay. You can only deduction the 1/2 portion of the overtime. IRS did not update W-2's, so you will have to provide that information to your tax professional yourself.
Your tax professional will use your W-2 for your tips reported to calculate the "no tax on tips'
If you purchased a new vehicle in 2025 for personal use, you can claim up to 10,000 in interest from the loan on your taxes.
Vehicle and Loan Requirements
To qualify for the deduction the vehicle must meet certain criteria:
The loan must taken out after December 31, 2024.
The loan must be used to purchase a new vehicle.
The vehicle must be a “qualified passenger vehicle,” defined generally as a car, minivan, van, SUV, pick-up truck, or motorcycle, with gross vehicle weight rating (GVWR) under 14,000 pounds, with final assembly in the United States.
The loan must be secured by a lien on the vehicle.
The vehicle must be for personal use (not business).
The new senior deduction will be calculated automatically. Even if you are not on social security, you can still qualify for the $6,000 deduction.
Key Requirements:
Age: You must be age 65 or older by the end of the tax year.
Social Security Number: You must have a work-authorized Social Security number.
Filing Status: The deduction is available for single filers, heads of household, and married couples filing jointly (it is not available for those married filing separately).
Income Limits: The full deduction is available to those with modified adjusted gross income (MAGI) below certain thresholds and phases out for higher-income earners.
Here are some more notable changes:
Increased Standard Deduction: The base standard deduction amounts have increased for 2025:
Single Filers: $15,750
Married Filing Jointly: $31,500
Head of Household: $23,625
Higher SALT Cap: For those who itemize, the cap on deducting state and local taxes (SALT) has temporarily increased to $40,000 ($20,000 for married filing separately), though income limitations may apply.
Business Bonus Depreciation: Businesses can deduct 100% of the cost of qualifying new equipment placed into service on or after January 20, 2025.
Increased Child Tax Credit: The credit increases to $2,200 per qualifying child, with a higher phase-out threshold of $400,000 for joint filers and $200,000 for single filers.
