Stay Prepared with Z Tax & Accounting

As Tax Year 2025 approaches, taxpayers and business owners must prepare for significant updates to U.S. tax laws, deductions, and credits. Z Tax & Accounting provides a detailed overview of all the major changes, ensuring you stay compliant and maximize your refunds this filing season.

Key Tax Changes for 2025

1. Extension of TCJA Provisions
The 2017 Tax Cuts and Jobs Act (TCJA) reductions for both individual and corporate tax rates are now permanent, creating long-term stability for taxpayers and businesses.

2. SALT Deduction Cap Increased
The State and Local Tax (SALT) deduction limit has been raised from $10,000 to $40,000 for households earning under $500,000. This benefit is effective through 2029.

3. Enhanced Child Tax Credit
Families can now claim $2,200 per child, with up to $1,400 refundable and indexed for inflation—helping parents offset rising living costs.

4. New Senior Deduction
A new $6,000 deduction is available for taxpayers aged 65 and older, gradually phasing out at higher income levels.

5. Small Business Incentives

• R&D Expensing: Small businesses may immediately expense domestic research and experimental costs.
  
  

• Tip and Overtime Deduction: From 2025–2028, employees can claim an above-the-line deduction for tips and overtime pay.
  
  

• Car Loan Interest Deduction: Up to $10,000 per year in deductible interest on qualified vehicle loans through 2028.
  
  

6. Expiring Green Energy Tax Credits
Certain Inflation Reduction Act energy incentives will expire after December 31, 2025, reducing available tax breaks for renewable energy investments.

Updated Tax Rate Schedules for 2025

The federal income tax brackets remain progressive, with rates ranging from 10% to 37% across all filing statuses:

• Single / Unmarried Individuals: 10% – 37%
  
  

• Married Filing Jointly: 10% – 37%
  
  

• Heads of Household: 10% – 37%
  
  

• Married Filing Separately: 10% – 37%
  
  

• Estates and Trusts: 10% – 37%, at lower thresholds
  
  

Additional Updates:

• Adoption Credit: Maximum $17,280 (phase-out: $259,190–$299,190)
  
  

• Foreign Earned Income Exclusion: $130,000
  
  

• Gift Tax Exclusion: $19,000 ($190,000 for non-citizen spouses)
  
  

Education and Health Tax Benefits

Education Credits:

• American Opportunity Credit: Up to $2,500 per student (phase-out for joint filers: $160,000–$180,000).
  
  

• Lifetime Learning Credit: Up to $2,000 per return, with the same income limits.
  
  

Other Adjustments:

• Educator Expense Deduction: $300, converting to an itemized deduction in 2026.
  
  

• Health Savings Account (HSA) Limits: $4,300 (self-only) and $8,550 (family coverage).
  
  

Important Tax Deadlines for 2025

• January 22, 2025: IRS begins accepting returns
  
  

• April 15, 2025: Tax Day — federal return deadline
  
  

• October 21, 2025: Final extension deadline
  
  

Federal Holidays:
Labor Day – September 1, 2025
Thanksgiving – November 27, 2025

Access IRS forms, publications, and compliance updates online through official channels for detailed guidance.

Partner with Z Tax & Accounting for 2025 Filing

Z Tax & Accounting helps individuals and businesses navigate new tax rules, maximize deductions, and stay IRS-compliant. Whether you’re filing locally or managing multi-state taxes, our experts handle federal, state, and business filings efficiently and securely.

📍 Z Tax & Accounting
600 E John Carpenter Fwy, Suite 268
Irving, TX 75062
📞 Call today to schedule your 2025 tax consultation and get ahead this season!