The talk of the town this summer is the above bill. do you know the facts that could affect you when filing your 2025 returns?
In some cases not so BIG or BEAUTIFUL!
There is an additional senior (over 65) deduction of $6,000. per individual that phases out when your Adjusted Gross Income exceeds $75,000.00, This a temporary deduction for tax years 2025 through 2028.
There is an increase in the SALT (state and local tax) deduction to $40,000. that is subject to phaseout for taxpayers with income above $500,000. This cap increases by 1% each year until 2029.
The standard deduction for 2025 will be $15,750. for individuals and $31,500. for joint filers that will become permanently adjusted for inflation in the future.
Tips up $25,000. can be deductible ONLY for individuals’ in traditionally tipped industries phasing out when adjusted gross income exceeds $150,000. This is a temporary deduction for years 2025 – 2028.
Overtime pay up to $12,500. of the premium portion on hourly rate pay for ALL employees phases out when adjusted gross income exceeds $150,000. This is another temporary adjustment through 2028.
Car loan interest for American made vehicles (final assembly in U.S.) is deductible up to $10,000 in tax year 2025 phasing out when adjusted gross income reaches $100,000.
Child tax credit increases to $2,200. per child for 2025 and becomes permanent with annual adjustments.
Trump Savings Accounts – for children born between 2025 – 2028 – one-time $1,000.
Electric vehicle credit ENDS as of September 30, 2025. Buy that car NOW!
The above changes are retroactive to 2025, however, there are many changes in the bill pertaining to 2026 and beyond. Please check my web site for the 2026 changes in December 2025 so you can be ready to take full advantage of these changes beginning January 1, 2026.
