2025 Tax Update

What’s New This Season - 2025

Happy New Year! 2024 was a fun-filled year with travel to Europe, James graduating high school, and Joe transitioning out of the US Navy and returning home. There will be more travel and fun in 2025!

 

Now, on to business matters…

We provide a secure link for easy upload through Dropbox for clients who send their documents via email or US mail.  Contact us for details or to request a link.

Please take note of our new email address:  tinataxpro@protonmail.com.

New Services!

We now provide Notary services, and we will travel to your site.  Contact Tina if you need any documents notarized.  

E-file 2025

The IRS will begin accepting and processing tax returns on January 27, 2025. 

Key Tax Code Changes

2024 Tax Year – Final Tax Brackets

 

Income Bracket	Single	Married Filing Joint
10%	<$11,600	<$23,200
12%	>$11,600	>$23,200
22%	$47,150	$94,300
24%	$100,525	$201,050
32%	$191,500	$383,900
35%	$243,725	$487,450
37%	$609,350	$731,200

·     2024 Increased Standard Deduction.  The standard deductions have increased for each filing status:

Single - $14,600

HOH - $21,900

MFJ - $29,200

·    Earned Income Tax Credit (EITC).  The maximum EITC for 2024 is $7,830 for three or more dependents.

·    Child Tax Credit.  The refundable portion has increased to $1,700.

·    IRA Contributions.  The annual contribution limit for 2024 is now $7,000.  For age 50 and over, the limit is $8,000.  Remember, you have until April 15 to contribute for the 2024 tax year.

·    Bonus Depreciation.  The bonus depreciation deduction is 60% in 2024.

·    Gift Tax Exclusions.  The annual gift tax exclusion increases to $18,000, and the lifetime exclusion increases to $13.61 million.

·    Electric Vehicle Credit.  Beginning in 2024, at least 40% of the battery components must come from North America or specified US Trading Partners. The credit can also be advanced at the point of sale and paid directly to the seller, but would need to be reconciled on the tax return.

 

2025 – Year of Uncertainty

The Tax Cuts and Jobs Act provisions are set to expire on December 31, 2025.  If they are not extended, significant changes may occur.

·    Itemized deduction phaseouts would be in place.

·    Standard deduction amounts would be greatly reduced.

·    $10,000 limit on taxes as an itemized deduction will be removed.

·    Child tax credit would be reduced.

·    Estate tax deduction would be greatly reduced.

 

We do not know what changes will occur or what provisions will be extended. We will keep you updated on developments throughout the year.

Call soon for a tax appointment!  Evenings and weekends also available at your convenience.