1) Child tax credit raised from $2000 to $2200 per child under 17.
2) Social security tax reduction depending on your income, the tax on your social security could be greatly reduced. The reduction will apply to people who turned 65 in 2025 and who’s income was $150,000 if married, or under $75,000 single or HOH.
3) Itemizing is back, I can think of many of you this could help. The cap for taxes on itemized deductions was raised from $10,000 to $40,000 for this year, and only in place at this point for this year. Not sure about coming years yet. If you have high taxes, house interest or high income with a lot of state tax withheld this could benefit you greatly. You can use the personal organizer found on my website to provide this information, or just bring forms.
“State and Local Taxes (SALT): The deduction limit for combined property, income, or sales taxes has increased to $40,000 for most filers ($20,000 for married individuals filing separately). This deduction begins to phase out for taxpayers with a modified AGI over $500,000.”
4) Business mileage for 2025 is .70/mile, up from last year.
5) Clean energy credits for vehicles available for 2025, then terminating (Expired September 30, 2025)
6) Residential clean energy available for 2025, then terminating 2026.
7) Premium tax credit repayment-cap removed (this is Marketplace insurance)this means that you could have to pay back more if you qualify than in the past because the cap has been removed. There was a maximum payback before.
8) Educator expenses (teachers or trainers, added are sports leaders and coaches)added to itemized deductions – no dollar limit, or $300 per person if not itemizing.
9) Donations – Even if you are not itemizing, there should be a place for you to claim up to $1000 for cash donations (this is all monies, but not items donated).Our experienced tutors specialize in test preparation, providing personalized guidance and support to help you reach your goals.
10)New Personal Use Car Loan Interest Deduction (2025-2028)
The "One Big Beautiful Bill Act," signed in July 2025, allows qualifying taxpayers to deduct up to $10,000 annually in interest paid on a personal vehicle loan. This is an "above-the-line" deduction, meaning you can claim it even if you don’t itemize.
Go here for key requirements:
https://www.google.com/search?q=KEY+REQUIREMENTS+FOR+CAR+INTEREST+TAX+DEDUCTION&rlz=1C1VDKB_enUS1069US1069&oq=KEY+REQUIREMENTS+FOR+CAR+INTEREST+TAX+DEDUCTION&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIHCAEQIRigATIHCAIQIRigATIHCAMQIRigATIHCAQQIRigATIHCAUQIRigATIHCAYQIRirAjIHCAcQIRirAjIHCAgQIRiPAtIBCTEyNzI0ajBqN6gCALACAA&sourceid=chrome&ie=UTF-8
11)Digital assets: keep good records (if you have sold crypto currencies in 2025)
12)Preventative care is added to medical if you itemize.
13)No tax on tips – up to $25,000 (w2s not changed in 2026)
This law is only in effect until 2028, reduced after $150,000 (phase out), excluded from QBI, money tips (no other form of tips), only on certain business (restaurants, etc typical tips), not on married separate returns, goes on Schedule 1a of 1040. (W2’s will not be changed in 2025).
14)No tax on overtime:
You or your employer have to determine the overtime, no guessing. W2 not being revised until 2026. You will need to know how much was overtime for this deduction in 2025, not allowed on Married filing separate returns, don’t have to itemize for this deduction.
Nebraska will honor Schedule 1a, other states may not. Your last pay stub of the year could help determine over time if your employer does not let you know how much is designated overtime.
15)You should be able to find w2s and 1095a on you online account now.
16)ABLE (Trump) accounts for children under age 18 (parents and grandparents, other can contribute up to $5000/year, plus $1000 given to newborns in given year automatically. Cannot withdraw before age 18.
No contributions can be made until July 4, 2026.
(17)1099K-only if more than $20,000 or 200 transactions
