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Tax Blog

The 2025 tax year saw many changes to the tax code in the One Big Beautiful Bill. Below highlights some of these big changes.

Many of these changes may apply to you and what we will need you to bring with your tax documents. If you have any questions about these changes and how they may apply to you please give us a call or email us.

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  • Under Executive order 14247, effective September 30, 2025 the IRS will phase out paper checks for refunds.

This means that most taxpayers will be required to receive their tax refund electronically, primarily through direct    deposit or other secure digital methods.

Tax payments must also be made using electronic methods such as: IRS Direct Pay, Electronic Federal Tax Payment System (EFTPS), Credit/debit card payments via IRS approved processors, and IRS Online Account portal.

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  • One Big Beautiful Bill Act (P.L. 119-21), effective January 1, 2025 permanently extends the 2017 Tax and Jobs Act.

Tax Brackets 10% - 37% are permanent​

Standard Deductions made permanent and increase with inflation

New $6000 Deduction for Seniors (65+) (2025-2028)~Phases out at $75K (Single) / $150K (MFJ)

Tips: Deduct up to $25,000; phased out at $150k/$300K MAGI

Overtime: Deduct up to $12,500 per person ($25,000 MFJ); phased out at $150K/$300K MAGI

Car Loan Interest: Deduct up to $10,000 for brand new U.S.-assembled cars for loans after 12/31/2024; phased out at $100K/$200K MAGI

Credits (2025)

Adoption Credits ~ Max: $17,280, $5K is now refundable

Child Tax Credit ~ Increased to $2,200

Additional Child Tax Credit ~ Increased to $1,700 (Refundable portion of CTC)

Electric Vehicle Credits ~ Expired September 30, 2025

Other 2025 Provisions

SALT (State & Local Taxes) Deduction ~ Increased from $10,000K to $40,000K

Educator Expenses ~ Above-the-line deduction capped at $300

1099K Threshold ~ $20,000 and 200 transactions

Trump Accounts ~ $1,000 credit for children born in 2025-2028 (accts will open after July 4, 2026.)

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*** Please bring last pay stub to help determine if you qualify for OT premium deduction and direct deposit/payment information.

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