01/26/2026
TAX LAW UPDATES🗣️🗣️🗣️
OBBBA Changes for TY 2025 1/2
-Social Security benefits remain taxable up to 85%
-$6,000 enhanced deduction for seniors 65+ (phases out at higher incomes)
-No tax on tips deductions which allows for a deduction of tip income up to $25,000 (phases out at $150k for single filers and $300k for MFJ)
-Overtime deduction of up to $12,500 for single filers and $25,000 for MFJ (phases out are same as the point above)
-Interest paid on car loans (not a lease) for NEW US-assembled vehicle is deductible up to $10,000 (phases out at $100k for single filers and $200k for MFJ)
-Expanded SALT deducton now capped at $40k
-Standard Deduction Increases:
$31,500 for married couples filing jointly
$15,750 for single filers and married individuals filing separately
$23,625 for heads of household
-No tax on car loan interest up to $10k on personal vehicles purchased after 12/31/2024 that underwent final assembly in the United States (leases excluded)
-Trump Accounts: new type of IRA accounts for children born between 1/1/2025-12/31/2028 under 18 and are eligible to be funded 7/4/2026. US citizens sith a valid SSN can get up to $1,000 deposited on theif behalf
-Refundable adoption credit up to $5,000 (indexed for inflation)
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Which one will benefit you or your clients the most?❓❓
