what's new?

On July 4, 2025 the President signed the new OBBB - a few highlights of the changes for 2025 are listed here:

• The standard deduction increased to $15,750 if single and $31,500 if married.
• The cap for SALT (State and local tax) deductions increased to $40,000 (up from $10,000 in 2024).
• Car loan interest may be deductible for a new (not used) car in 2025 if it was assembled in the US.  Income limits apply.
• Tip income may be deducted up to the lesser of the tip income shown on W-2 or $25,000. Income limits apply.
• Overtime pay may be deducted up to the lesser of overtime income shown on W-2 or $12,500.  Income limits apply.
• New deduction for seniors which allows an additional $6,000 for each filer that has reached age 65 by December 31, 2025.
• The credit for an electric car ended on September 30, 2025, and the credits for insulation, storm windows, doors, furnaces, water heaters, solar power, geothermal energy, and wind energy systems ended on December 31,2025.