Effective for the 2025 Tax Year (Filed in 2026)
Recent tax law updates under TOBBB introduce important changes for individuals and businesses.
Key Individual Changes
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Standard Deduction:
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$31,500 – Married Filing Jointly
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$23,625 – Head of Household
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$15,750 – Single / Married Filing Separately
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Additional Senior Deduction: $6,000
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Child Tax Credit: $2,200 per qualifying child
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Adoption Credit: $5,000 (refundable)
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SALT Deduction Cap: $40,000 (MFS $20,000)
New Income Exclusions
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Tips: Up to $25,000 not subject to tax
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Overtime Pay:
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Up to $12,500 (Single)
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Up to $25,000 (Married Filing Jointly)
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Auto Loan Interest: Deduction up to $10,000 (qualified loans)
Reporting & Compliance Updates
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1099-K Reporting: Applies when payments exceed $20,000 and 200 transactions
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Direct File Program: Discontinued
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Trump Accounts: Pilot program introduced
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HSA: Telehealth services allowed
Business Highlights
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100% Bonus Depreciation for qualifying property placed in service after 1/19/2025
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Section 179 Deduction: $2.5 million limit ($4.0 million phaseout)
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R&D Expenses (§174A): Currently deductible
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Qualified Small Business Stock (§1202): 50%, 75%, or 100% gain exclusion
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ERC Refunds & Claims: Continued IRS guidance
Energy Credits
Many electric vehicle, solar, home, and business energy credits continue but begin expiring in 2025–2026.
Important:
All provisions have income limits, eligibility rules, and documentation requirements. Not every taxpayer qualifies for every benefit.
📞 303 537 7268 Contact our office to see how these changes apply to you.