A few of the more notable changes to 2025 Individual Income Taxes
- A new Senior Deduction of $6,000 may be deducted up to income levels of $75,000 Single/Head of Household/Married filing Separate or $175,000 Married filing Joint. The deduction phases out if your income is above these levels.
- Interest on a new car loan purchased after 12/31/24 may be deductible.
- A new Tip Deduction of up to $25,000 of Tip Income may be deducted if your income levels are below $150,000 Single/Head of Household or $300,000 Married filing Joint. The deduction is not available to Married filing Separate returns.
- A new Overtime Deduction of up to $12,500 Single/Head of Household or $25,000 Married filing Joint of Overtime Income may be deducted if your income levels are below $150,000 Single/Head of Household or $300,000 Married filing Joint. The deduction is not available to Married filing Separate returns.
- The State and Local Tax Deduction is expanded from $10,000 to $40,000 for income levels up to $250,000 Single/Head of Household/Married filing Separately and $500,000 Married filing Joint.
- Energy credits for residential improvements to your home expire at 12/31/25.