07/10/2025
Summary of Changes in the “Big Beautiful Bill”
In the coming weeks I will be posting more detailed information regarding the below list of changes that effect your 2025 tax return. For now I am posting a listing of things that I feel will most effect people of our area.
Individual Income Tax Rate Brackets: Make permanent the modified federal income tax brackets and lower tax rate made with the TCJA.
Deduction for Seniors (65 and older): Tax years 2025 – 2028, $6,000 deduction for years 2025 -2028. This deduction is to help negate income tax on social security. Income limitations apply.
Child Tax Credit: Made $2,000 and the $500 nonrefundable credit for non-child dependents. Income limitations apply.
Wagering (Gambling) Losses: Permanently make a limit of expenses related to wagering be limited to the extent of the gambling winnings. Deduction for gambling loses limited to 90% of losses incurred during the year.
No Income Tax on Tips: Tax years 2025 – 2028, $25,000 limit set. Must be reported on a W-2 or 1099-NEC form. Income limitations apply.
F**A Tip Tax Credit For Employers: Allows eligible employers ot claim an income tax credit for a portion of Social Security and Medicare (F**A taxes)on certain employee tips.
No Tax on Overtime: Tax years 2025 – 2028, an above line deduction of up to $12,500 for overtime pay. Overtime pay must be reported on the W-2. Income limitations apply.
Car Loan Interest Deduction: Tax years 2025 – 2028, applies to new cars assembled in US. Up to $10,000. Income limitations apply.
Trump Accounts – Newborn Pilot Program: Birth Years 2025 – 2028, US citizens will receive a $1,000 contribution.
Increased Threshold for Form 1099-K Reporting: New reporting limit is $20,000.
Energy Efficient Home Improvement Credit: Credit expires 12/31/25. Covers heat pumps, exterior doors, windows, central air conditioners, water heaters, furnaces, boilers, and electric panels.
Watch for the detailed changes in the coming weeks. Feel free to stop in to discuss with us here in Keysville.
