Tax season is here, and 2025 has shaped up to be one of the most significant years for tax changes in recent history. The recently passed One Big Beautiful Bill (OBBB) made sweeping updates that will affect nearly every taxpayer. From higher deductions to expanded credits and even new types of income exclusions, there’s a lot to keep track of this year.
At Strojny Financial Services, our goal is to break down these changes so you know exactly what to expect and how to take advantage of opportunities to save.
Major Updates for 2025 filing
Bigger Standard Deductions:
- $15,000 for Single Filers
- $30,000 for Married Filing Jointly
- $22,500 for Head of Household
This means fewer people will need to itemize, but we’ll help you determine which filing method gives you the best outcome.
Senior Deduction
Taxpayers age 65 and older can now claim an additional $6,000 deduction, even if they itemize. This new benefit can make a meaningful difference for retirees on fixed incomes.
No Tax on Tips & Overtime Pay
From 2025 through 2028, tips and overtime income are excluded from taxation (subject to income caps). This is great news for service workers and anyone working extra hours.
Auto Loan Interest Deduction
If you purchase a U.S.-assembled vehicle, you may deduct up to $10,000 in auto loan interest between 2025–2028. This is a completely new deduction and could make vehicle financing more affordable.
SALT Deduction Cap Raised
The state and local tax (SALT) deduction cap jumped from $10,000 to $40,000 through 2029. This is especially valuable for taxpayers in higher-tax states.
Enhanced Child Tax Credit
Families will see an increase to $2,200 per child (under the age of 17), with the amount now indexed to inflation. This boosts relief for parents and guardians.
Expiring Credits & Incentives
Some credits are phasing out:
Electric vehicle tax credit and clean energy incentives ended September 30, 2025.
Other clean energy tax breaks ended by December 31, 2025.
Inflation Adjustments Across the Board
The IRS also raised thresholds for items like the Earned Income Tax Credit, AMT exemption, foreign earned income exclusion ($130,000), gift tax exclusion ($19,000), and the adoption credit.
Why This Matters for You
With so many updates in play, 2025 offers more opportunities to reduce your tax burden, but also requires careful planning. Filing without a strategy could mean leaving money on the table. That’s where we come in. At Strojny Financial Services, we’ll help you:
- Maximize deductions and credits
- Plan around expiring incentives
- Ensure compliance with new rules
- Build a tax strategy that aligns with your long-term financial goals