BIG CHANGES AHEAD!
📣 Big Changes Ahead: What You Need to Know About 2025 Tax Returns
As we approach the 2025 tax season, both individuals and business owners should be aware of several key updates introduced by the One Big Beautiful Bill Act of 2025. These changes are designed to simplify tax filing, offer new deductions, and reshape how income is taxed. At CCFS, we’re here to help you understand what’s changing and how to prepare.
🧾 Key Changes for Individuals
1. No Tax on Tips and Overtime Pay
Starting in 2025, tips and overtime earnings are no longer subject to federal income tax [1]. This is a major win for service industry workers and hourly employees.
2. Increased Standard Deduction
The standard deduction for joint filers has increased to $31,500, with additional deductions for seniors over 65 [2].
3. Expanded SALT Deduction
The cap on State and Local Tax (SALT) deductions has been raised from $10,000 to $40,000, though it phases out for high-income earners [2].
4. New Car Loan Interest Deduction
Interest paid on new U.S.-made car purchases is now deductible—up to $10,000 [2].
🏢 Key Changes for Businesses
1. Permanent 20% QBI Deduction
Pass-through entities can continue to claim the Qualified Business Income (QBI) deduction, with expanded phase-out thresholds[2].
2. Bonus Depreciation Boost
Businesses can now claim 100% bonus depreciation on qualifying property placed in service in 2025. Section 179 limits have also increased from $1.2M to $2.5M[2].
3. Small Business Stock Incentives
Selling a qualified small business now comes with better tax treatment: the holding period for tax-free gains has dropped from 5 years to 3 years, and the market cap threshold increased to $75M[2].
🎥 Watch: Tax Changes Explained
For a deeper dive into these updates, check out this expert video breakdown:
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🔗 Helpful IRS Resources
💬 Need Help?
At CCFS, we’re ready to guide you through these changes and ensure your tax strategy is optimized. Whether you're an individual filer or a business owner, we’ll help you make the most of the new rules.
📞 Contact us today to schedule a consultation!
(281) 469-2013
References
[1] One, Big, Beautiful Bill Act of 2025 provisions
[2] The One Big Beautiful Bill Unpacked: Key Tax Changes in 2025 and Beyond
[3] IRS announces no changes to individual information returns or ...
