The Good News: What You Need to Know for Your 2025 Taxes 💵💰
Tax season is here! If you earned income in 2025, there are several updates that can affect personal taxes, family credits, and small business deductions. Here’s a quick guide so you know what to expect.
1. Tax Services with us start at $250
Whether you’re filing personal taxes or both personal and business returns, our services start at $250. We handle the details, maximize deductions, and make sure everything is done accurately.
2. Bigger Standard Deduction
For 2025, the standard deduction is:
Single: $15,750
Married filing jointly: $31,500
Married filing separately:$15,750
Head of household: $23,625
Surviving Spouse: $31,500
More of your income is automatically shielded from tax, which can lower your bill if you’re not itemizing.
3. Child Tax Credit & Earned Income Credit
Child Tax Credit: Eligible families can claim up to $2,200 per child under 17, with up to $1,700 refundable.
Earned Income Tax Credit (EITC): Slightly higher amounts for low and moderate income workers, up to $8,046 for families with three or more children.
These credits can increase your refund or reduce your tax liability for 2025.
4. Tip Income
If you earn tips (servers, bartenders, hairstylists, etc.):
All tip income is taxable.
For 2025, you may qualify for a deduction on qualified tips — up to $25,000, subject to income limits.
Payroll taxes (Social Security & Medicare) still apply.
5. Qualified Overtime Deduction
For 2025, the premium portion of overtime pay may be deductible. Here’s what you need to know:
What qualifies: Only the extra half beyond your regular rate (the “premium portion”) — e.g., the additional $10 when your $20/hour rate becomes $30/hour for overtime.
Limits:
Up to $12,500 for single filers
Up to $25,000 for married filing jointly
Phases out at higher incomes (above ~$150,000 single / ~$300,000 joint)
How it works: The deduction reduces taxable income when you file your return — it does not reduce payroll taxes or your W‑2 wages.
Action needed: You may need to calculate this manually using pay stubs, as employers may not separately list it on the W‑2 for 2025.
6. Withholding & Future Planning
Because of higher deductions, credits, and the overtime rule, now is a good time to check your Form W‑4 with your employer for 2026. Adjusting withholding can help prevent overpaying or underpaying taxes next year.
7. Small Business & Depreciation Rules
For small business owners, several changes can reduce taxable income and improve cash flow:
Bonus Depreciation: Full 100% deduction for qualified assets placed in service in 2025, like equipment or tech.
Depreciation Recapture: Selling depreciated assets can trigger taxes on previously claimed deductions.
Section 179 & QBI: Higher expensing limits and the 20% Qualified Business Income deduction remain, helping pass-through businesses save on taxes.
8. Other Considerations
SALT deduction cap temporarily higher for 2025: $40,000.
Seniors may have additional deductions if eligible.
So, what’s the good news?
Thegood news is, even with all the changes for 2025, there are ways to reduce your taxable income and maximize your refund. From child tax credits and earned income credits to deductions for tip income and qualified o ertime, you have options to lower your taxes. Small business owners can also take advantae of bonus depreciation and Section 179 expensing to save on taxes. The key is knowing what’s available and reporting it correctly - that’s where we come in. We help make sure you don’t miss deductions, credits, or savings that are rightfully yours, so you can keep more of what you earned.
Need help filing? Our tax services start at $250, and we make it simple, accurate, and stress-free.
