2025 Key Tax Updates
Individual Tax Updates (Source)
Increased Standard Deductions
Standard deduction amounts are higher, which can reduce taxable income even if you don’t itemize
Expanded Deductions & Credits (One Big Beautiful Bill)
Tip Income Deduction — Qualifying tipped workers may deduct up to $25,000 of tips from taxable income (income limits apply)
Overtime Deduction — Deduct qualified overtime pay (up to $12,500 individual / $25,000 joint)
Child Tax Credit increased to $2,200 per qualifying child
Bonus Senior Deduction — Taxpayers 65+ may claim an extra deduction (up to $6,000)
Higher SALT Cap — State & local tax deduction cap increased up to $40,000, from $10,000 (income limits apply)
Car Loan Interest Deduction — Deduct interest on certain auto loans (up to $10,000)
Tips to Make Tax Season Easier
Gather Early
W‑2s, 1099s (NEC, INT, DIV, K), 1095s, 1098s
Records of childcare, education, retirement contributions
Maximize Deductions
Track eligible tips & overtime if applicable
Review itemized deductions vs. standard deduction
Review retirement/HSA contributions by filing deadline
Avoid Penalties & Delays
File by April 15, 2026 (or request extension by that date)
Remember, it’s an extension to file not an extension to pay
Pay any tax owed or estimated by April 15 to avoid interest/penalties
Electronic Filing & Refunds
Double‑check names/SSNs to avoid e-filing rejections
Make sure to provide a current bank account and current address to avoid refund delays
Respond promptly to any IRS notices
Business Tax Updates (Source)
Expanded Deductions
100% Bonus Depreciation — Permanent, full expensing for qualified business property
Qualified Production Property Deduction Changes — Expanded for certain assets
Qualified Business Income Deduction –Provides a 20% deduction against your business net profits, income limits apply (Source)
Tips to Make Tax Season Easier
Organize Books Year‑Round
Reconcile accounts monthly
Track payroll, contractor payments, and expenses accurately
Consider one of our recurring bookkeeping packages – click here for more
Key Documents to Gather
1099‑NEC/1099‑MISC issued & received
W‑2/W‑3 for employees
Financial Statements: Profit & loss and Balance Sheet
Tax Deadlines to Know
Jan 31, 2026 — Deadline for W‑2s and 1099s to IRS & recipients
Mar 15, 2026 — S‑Corp/Partnership returns due
Apr 15, 2026 — C‑Corp/sole proprietor returns due
Avoid Interest & Penalties
File on time or file an extension. Pay your tax owed by the return due date. The extension is for filing but does not extend your requirement to pay.
Use accurate EINs and contact info
Respond promptly to IRS/state notices
Strategic Planning
Review depreciation and asset purchases
Maximize retirement plan contributions for owners