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TAX PROVISION
Standard Deduction
WHAT CHANGED
Increased to $31,500 (MFJ)/ $23,625 (HOH)/ $15,750 (single)
Child Tax Credit
Increased from $2,000 to $2,200 per qualifying child
Child & Dependent Care Credit
Covers up to 50% of $3,000 (1 child) or $6,000 (2+ children) of qualified care expenses
State and Local Tax (SALT) Cap
Increased cap from $10,000 to $40,000 with phaseout beginning at $500,000 MAGI
Car Loan Interest Deduction
Up to $10,000 deduction on new car loans on U.S. assembled vehicles. Phaseout for AGI over $100,000 (single)/ $200,000 (MFJ). Available to itemizers and nonitemizers.
No Tax on Tips
Up to $25,000 deduction is available for qualified tips in traditionally tipped industries. Phases out with AGI over $300,000 (MFJ)/ $150,000 (single) and is available to both itemizers and nonitemizers.
No Tax on Overtime Pay
Deduction on qualified overtime income up to $12,500/ $25,000(MFJ), available to both itemizers and nonitemizers.
Retirement (401(k)/IRA)
Saver’s credit becomes federal match paid into your account; catch-ups at 60+ and indexed for inflation
Enhanced Deduction for Seniors
$6,000 deduction for age 65 or older, Phased out by 6% of AGI exceeding $75,000 (single) / $150,000 (MFJ)
2025 TAX UPDATES FOR INDIVIDUALS
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