Recent legislation made significant changes to the tax code. Here's what affects returns we're preparing now.
Standard deduction now permanent: $15,750 (single), $23,650 (HOH), $31,500 (MFJ). These amounts adjust for inflation. Personal exemptions for yourself, spouse, and dependents are eliminated.
Continue reading →Child tax credit rises to $2,200 per child under 17, adjusted for inflation. Refundable portion now $1,700. Phase-out starts at $200K (single) / $400K (MFJ).
Continue reading →Seniors 65+ get an extra $6,000 deduction (2025–2028). Couples where both are 65+ can claim $12,000. Phase-out above $75K.
Continue reading →New tip deduction: up to $25,000 (2025–2028) for qualified tips from traditional tipping jobs. Phase-out. Not for all service trades.
Continue reading →Deduct up to $12,500 in overtime pay (2025–2028). $25,000 for joint filers. Reported separately on W-2. Phase-out above $150K.
Continue reading →SALT limit now $40,000 (was $10,000). More may itemize.
Continue reading →Car loan interest: up to $10,000/year (2025–2028). US-assembled only. Phase-out starting at $100K.
Continue reading →Deduction limited to federally declared disasters (permanent). Starting 2026, state-declared disasters also qualify.
Continue reading →Child savings accounts: $5,000/year limit. Treasury gives $1,000 for kids born 2025–2028. Not deductible; withdrawals taxed.
Continue reading →Moving expense deduction permanently repealed (except military/intelligence). Employer reimbursements now taxable.
Continue reading →These changes are already law but take effect for future tax years.
Beginning in 2026, deduct up to $1,000 in charitable donations even if you don't itemize — a permanent change. And once required IRA distributions begin at 73, giving directly from the IRA keeps that money out of your adjusted gross income entirely.
Continue reading →Beginning in 2026, the Act treats mortgage insurance premiums (PMI) as qualified residence interest.
Continue reading →Gambling losses capped at 90% (was 100%). Only deductible against winnings.
Continue reading →Plain-language pieces on how the rules actually work, written by the people who prepare your return.
