What It Means for You

 

There are new tax changes coming, and many of them are designed to help everyday people save more money and get bigger refunds. Here are the updates that may impact you the most:

 

Major Tax Benefits for Individuals

 

1. Auto Loan Interest Deduction (2025–2028)
If you buy a new U.S.-made car or motorcycle and earn under $100,000 (single) or $200,000 (married), you may deduct up to $10,000 of interest—even without itemizing.

 

2. Child and Dependent Care Credit (2026–2028)
Helps parents with childcare costs. Lower-income families can get up to 50% of their childcare expenses back as a credit.

 

3. Child Tax Credit
Up to $2,200 per child. Up to $1,700 per child can be refunded even if you owe zero tax.

 

4. Tax Savings for Seniors (2025–2028)
If you are age 65 or older, you can deduct an extra:

$6,000 if single

$12,000 if married

 

5. Bigger Standard Deduction
More of your income is tax-free:

$15,750 Single

$23,625 Head of Household

$31,500 Married Filing Jointly

 

6. No Tax on Tips (2025–2028)
Up to $25,000 in qualified tips will not be taxed. Still must be reported.

 

7. No Tax on Overtime (2025–2028)
The extra overtime pay can be deducted up to:

$12,500 Single

$25,000 Married Filing Jointly

 

8. SALT Deduction Raised
State/local tax deduction increased up to $40,000 (income limits apply).

 

9. Home Energy Credits Ending Soon
Current energy-efficiency credits expire December 31, 2025.

 

10. Electric Vehicle Credits Ending
Up to $7,500 credit for new EVs ends after Sept 30, 2025.

 

11. Gambling Loss Deduction Limit
Starting in 2026, you can only deduct up to 90% of gambling winnings.

 

12. Charitable Donations Without Itemizing (2026)
Deduct up to $1,000 (single) or $2,000 (married) even if you take standard deduction.

 

13. “Trump Accounts” for Newborns (2025–2028)
Babies may receive a $1,000 government contribution plus family contributions with tax benefits.

 

 

New Benefits for Small Business Owners

 

1. 20% Business Income Deduction—Permanent
Self-employed and small business owners keep this big tax savings.

 

2. 100% Bonus Depreciation
Business equipment purchased after Jan 20, 2025 can be fully deducted right away.

 

3. Higher Section 179 Expense Limit
Instant write-off limit increased to $2.5 million in equipment purchases.

 

How to Take Advantage

 

Keep records and receipts for childcare, business expenses, donations, and vehicle purchases.

Plan early because some tax breaks expire soon.

 

Ask a tax professional to help you get the most out of these new rules.

Need Help Understanding How This Affects You?

 

I stay up to date with every tax law change so you do not miss a single credit or refund you deserve. Contact me early for tax planning if you:

 

Have kids or dependents

Drive for rideshare or gig work

Run a small business

Receive tips or work overtime

Recently bought a car or home upgrades

 

I am happy to review your situation and help you make the smartest tax decisions for next year.