IRS bullet points of the 2025 tax filing year:

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1.  Standard Deduction increase:

• The 2025 standard deduction is $15,750 for single filers and those married filing separately,

$31,500 for those married filing jointly, and $23,625 for heads of household.  

2. The child & family tax credits 

•   Child tax credit: $2,200 per child (16 yo and under), $1,700 refundable. Phase out at $200,000.

•  Other dependent credit: $500 (permanent)

•  Adoption credit: up to $17,280 with $5,000 refundable

3. Business & Worker Deductions

• QBI deduction: 20% for pass-through income, now permanent.

• Overtime pay deduction: up to $12,5000 (single) $25,000 (joint) exp 12/31/28 Phase outs: $150,000 (single) $300,000 (joint)

• Qualified tips deduction: up to $25,000 exp 12/31/28 ^same phase out.

4. Senior Deduction

• $6,000 deduction for taxpayers over 65. exp 12/31/28 Phase outs $75,000/$150,000    ​

5. Itemized Deductions: 

• SALT (state and local taxes) State and local taxes: The deduction for state and local income taxes, property taxes, and real estate taxes have increased to $40,000.

• Charitable donations: Non-itemizers may deduct up to $1,000 (starting in 2026). Itmezers (new) 0.5% of AGI cap

• Medical expenses: Only medical expenses that exceed 7.5% of adjusted gross income (AGI) can be deducted in 2025.

• Gambling Losses: Limited to 90% of the year's winnings.

5.  Retirement contribution limits are:

• IRA  $7,000 up to age 50, $8,000 age 50 and up

• 401K is $23,500, over 50 limit is $31,000

6. Auto Loan Interest deduction

• Up to $10,000 for new US assembled vehicles for personal use. 

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Tax Scams/Consumer Alerts

If it sounds too good to be true, it probably is!
In recent years, thousands of people have lost millions of dollars and their personal information to tax scams and fake IRS communication.

REMEMBER: The IRS doesn't initiate contact with taxpayers by phone calls, email, text messages or social media channels to request personal or financial information.  In addition, IRS does not threaten taxpayers with lawsuits, imprisonment or other enforcement action.  Being able to recognize these tell-tale signs of a phishing or tax scam could save you from becoming a victim.

THINK BEFORE YOU DONATE:

Here are the 'good guys' or, even better, choose to donate to a local nonprofit.
 

The American Legion National Commander receives a $0.00 salary

The Veterans of Foreign Wars National Commander receives a $0.00 salary

The Disabled American Veterans National Commander receives a $0.00 salary

The Military Order of Purple Hearts National Commander receives a $0.00 salary

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