New Tax Law Provisions for 2025: Complete Guide
Download our Guide to New Tax Law Provisions (2025) here: New Tax Law Provisions for 2025 Guide
Tax laws shift often, and 2025 brings several important updates that could affect individuals, families, and business owners. To make these changes easier to navigate, we’ve created a comprehensive guide that breaks down the highlights of the 2025 New Tax Law Provisions (OBBBA - H.R.1).
Some of the most notable updates include:
Higher standard deductions. For 2025, the standard deduction has increased to $15,750 for single filers, $23,625 for heads of household, and $31,500 for married couples filing jointly. Seniors (65+) may also claim an additional $6,000 per person, though this benefit phases out at higher income levels.
Expanded child and adoption credits. The Child Tax Credit increased to $2,200 per qualifying child, while up to $5,000 of the Adoption Credit is refundable starting in 2025.
New deductions. Taxpayers may be able to deduct qualified tips (up to $25,000), overtime pay (up to $12,500), and vehicle loan interest (up to $10,000), subject to income limits.
529 plan flexibility. Education savings accounts now cover additional expenses, including tutoring, testing fees, and credentialing programs.
Energy credits sunset. Credits for electric vehicles, residential energy improvements, and other clean energy investments begin phasing out in late 2025.
Looking further ahead, some provisions are extended or made permanent in 2026, such as the lower individual tax brackets, limits on mortgage interest deductions, and higher thresholds for 1099 reporting.
These updates can create both opportunities and challenges for taxpayers. Understanding how they apply to your situation is key to avoiding surprises and planning effectively.
At KeyLin Advisors, our team is here to help you interpret these updates and apply them to your financial strategy. If you have questions about how these provisions may impact your tax return or business planning, connect with us today.