Important Reminder (Tips & Overtime)
If you earned tips or overtime in 2025, please verify your employer-reported information is correct
before coming to our office. Incorrect reporting can delay your return or reduce eligibility for deductions.
1) Federal Brackets & Standard Deduction
Federal tax brackets remain in place and are adjusted for inflation. Standard deduction amounts are higher for 2025.
2) Tips Income (Updated)
Tips are still taxable, but certain tips may qualify for a deduction when properly reported.
Verify your W-2 and tip records are accurate before your appointment.
3) Overtime Pay (Updated)
Some overtime pay may qualify for a deduction if it is correctly documented.
Review paystubs and confirm overtime reporting before coming in.
4) Car Loan Interest Deduction (New)
Interest on certain financed vehicles may be deductible (income limits apply). Bring your loan statements and bill of sale.
5) Child Tax Credit (Updated)
Up to $2,200 per qualifying child (under 17). The rules now strongly depend on having valid Social Security numbers.
See the detailed page for requirements.
6) Credit for Other Dependents
If you do not qualify for the Child Tax Credit, you may qualify for up to $500 per dependent in certain cases.
7) Additional Deduction for Seniors
Taxpayers age 65+ may qualify for an additional deduction on top of the standard deduction.
8) SALT (State & Local Tax) Deduction (Temporary Increase)
The limit for deducting state and local taxes is temporarily higher for some taxpayers who itemize.
Want the full requirements?
Visit the detailed page here:
2025 Tax Updates – Detailed