In 2017 a huge overhaul was made to the tax code. This overhaul is called the Tax Cuts and Job Acts.  Many of the tax benefits we enjoyed as a result were set to expire.  Now these have been made permanent.

 What does this mean under the 2025 tax bill that was just passed.

• Tax Brackets remain permanent.
• Standard Deductions remain permanent.
• Child Care Tax Credit remains permanent.
• Estate Tax remains permanent.
• Alternative Minimum Tax (AMT) for income earners over $100,000.00 remains permanent.
• Estate tax remains permanent.
• Qualified Business Income tax remains permanent.

What will change are adjustments such as income limits and phase outs. Not only are these permanent, they have also increased the amounts and include Cost of Living Increases to keep up with inflation.  

What is new?  

• No tax on Qualified Tips (definition still to be determined), 
• No tax on overtime.  
• No tax on auto loans that were manufactured in the United States of America.  Did you know that you could write off your auto loan?

Bonus Depreciation has been extended to 2029.

401K limits increase, including catch up.

The most important thing to keep in mind as one prepares for the 2025 tax return is these do not impact Life Events.  If you are concerned about how Life Events may impact your return you may reach out to me for a free 15 consultation. We also offer a year round consultation for a more in depth, personalized consultation for $65.00.  Check out the site and subscribe.

Jamison’s Tax Consulting does not use mainstream media as a resource.  We only use the IRS site and resources to educate our clients.