2025 Tax Season
2025 - Tax Brackets
America turns 250!
Understanding Your Bracket
Other Factors to Consider
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Filing Status
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Dependents
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Age
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Profession
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Self-Employment
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Retirement Income
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State Taxes
Child Tax Credit​
$500 Refundable (Doesn't need tax liability)
$1700 Non-Refundable (Only used against Tax Liability)
Itemized Deductions*
Itemized Deduction is calculated if a total of all of these factors exceeds the Standard Deduction*
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Mortgage Interest
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State and Local Taxes (SALT now capped at 40K, was 10K)
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Home Equity Interest (HELOC)
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Medical Expenses – The threshold of qualified expenses must exceed 7.5% of your Adjusted Gross Income (AGI).
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Medical miles
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Donations of cash or items to charity
Standard Deduction
New Tax Laws (2025)
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(No Tax on Overtime)
Effective: 2025–2028
The new “No Tax on Overtime” rule.
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Capped at $12,500 (Single) / $25,000 (Married Filing Jointly).
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(MAGI) to phase out starting at $150,000 (Single) / $300,000 (Married Filing Jointly).
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The deduction is not available for people using the Married Filing Separately status.
(No Tax on Tips)
Effective: 2025–2028
The new “No Tax on Tips” rule.
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Capped at $25,000.
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(MAGI) to phase out starting at $150,000 (Single) / $300,000 (Married Filing Jointly).
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The deduction is not available for people using the Married Filing Separately status.
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Form 1099-K reporting threshold
Effective: 2025 and beyond
Form 1099-K will be sent to you if your total payments are:
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over $20,000 and you received over 200 transactions on any one platform in a given year.
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You must report any payments received regardless of this threshold rule.
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529 Plan expansion
Effective: 2025 and beyond
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Up to $20,000 to pay for K-12 expenses (up from the previous $10,000).
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Car Loan Interest Deduction
Effective: 2025–2028
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The deduction is limited to $10,000 of qualified interest.
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Vehicle must have been purchased in 2025 or years after.
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Vehicle must have a “final assembly” in the U.S.
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Vehicle Identification Number (VIN) must be included on the tax return.
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Phased out at 20% for (MAGI) over $100,000 (Single) / $200,000 (Married Filing Jointly).
Deduction for Seniors
Effective: 2025-2028,
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The $6,000 senior deduction is per eligible individual (or $12,000 for two eligible individuals (Married Filing Jointly)).
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(MAGI) to phase out starting at $75,000 (Single) / $150,000 (Married Filing Jointly).
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The deduction is not available for people using the Married Filing Separately status.​
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Repealed Tax Laws (2025)
Clean Vehicle credits
(EXPIRED) New Clean Vehicle Credit:
The credit will not be allowed for any Vehicle acquired after September 30, 2025.
(EXPIRED) Used Clean Vehicle Credit:
The credit will not be allowed for any Vehicle acquired after September 30, 2025.
(EXPIRED) Qualified Commercial Clean Vehicle Credit:
The credit will not be allowed for any Vehicle acquired after September 30, 2025.
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Home Energy Credits
(EXPIRED) Energy Efficient Home Improvement Credit:
The credit will not be allowed for any Property placed in service after Dec. 31, 2025.
(EXPIRED) Residential Clean Energy Credit:
The credit will not be allowed for any Expenditures made after Dec. 31, 2025.