2025 Tax Updates
Detailed Explanations & Requirements (Tax Year 2025 • Filed in 2026)
Critical Requirement: Tips & Overtime Must Be Verified
If you earned tips or overtime, please review your paystubs and W-2 BEFORE your appointment.
We cannot guess or adjust employer-reported amounts without documentation. Incorrect information can reduce deductions or delay your return.
1) Federal Brackets & Standard Deduction
Federal tax brackets are adjusted for inflation. Most taxpayers will take the standard deduction, which is higher for 2025.
Standard Deduction (2025)
Single: $15,750 • Married Filing Jointly: $31,500 • Head of Household: $23,625
2) Tips Income — Details & Requirements
Tips remain taxable, but certain tips may qualify for a deduction if properly reported.
What you must do BEFORE your appointment:
- Review your W-2 and confirm tip amounts are correct.
- Bring any tip summaries/statements provided by your employer.
- If you believe tips were reported incorrectly, request corrected documentation from your employer.
We cannot estimate or change tip income without official documentation.
3) Overtime Pay — Details & Requirements
Some overtime pay may qualify for a deduction if it is correctly identified and documented.
What you must do BEFORE your appointment:
- Review paystubs to confirm overtime hours and overtime pay.
- Confirm your W-2 reporting matches your pay records.
- Bring paystubs if overtime is not clearly separated.
If overtime is reported incorrectly, eligibility for deductions may be reduced.
4) Car Loan Interest Deduction — Requirements
Interest paid on certain financed vehicles may be deductible if requirements are met (including possible income limits).
Bring these documents:
- Bill of sale
- Loan statement
- Total interest paid for the year
5) Child Tax Credit — Requirements (SSN Rules)
The Child Tax Credit can be up to $2,200 per qualifying child under age 17. Eligibility depends heavily on Social Security number rules.
SSN Requirement (Very Important)
In general, to claim the Child Tax Credit, the child must have a valid SSN and the taxpayer claiming the child must have a valid SSN.
If an SSN is missing, the Child Tax Credit may not apply.
If you don’t qualify for CTC:
You may still qualify for the Credit for Other Dependents (up to $500 per dependent) in certain cases.
6) Senior Additional Deduction
Taxpayers age 65+ may qualify for an additional deduction on top of the standard deduction.
7) SALT Deduction (State & Local Taxes)
Some taxpayers who itemize may benefit from a temporarily higher cap on deducting state and local taxes, including property taxes.
Need help preparing?
Review your documents here:
Document Checklist
• Or contact us:
Contact Us