I’m excited to share the latest tax law updates from the new One Bill Beautiful Bill
Personal Tax Benefits for Your 2025 Return:
Full $2,000 Child Credit
Enjoy the full credit amount, refundable even if your tax liability is zero.
Expanded Earned Income Credit
Now available for taxpayers ages 19–24 and certain non-custodial parents.
Car-Loan Interest Deduction
Deduct interest of up to $10,000 annually on new car loans from 2025–2028.
No Tax on Tips & Overtime
Tips and overtime earnings, up to specific IRS limits, are now exempt from taxation.
Social Security Benefit Exclusion
Exclude up to 50% of Social Security benefits from taxable income.
Home Clean-Energy Credit
Receive a 30% credit for qualified investments in solar panels, heat pumps, insulation, and more.
Coming in 2026 and Beyond:
More Affordable Health Insurance
Out-of-pocket spending caps will gradually decrease over three years.
First-Time Homebuyer Credit
Receive a credit of up to $5,000 for homes purchased starting in 2027.
Business Tax Advantages for 2025:
100% Bonus Depreciation
Businesses can fully expense new equipment for an additional year.
Increased Section 179 Limit
Immediate deduction limit increases to $1.5 million in the first year.
Made-in-USA Credit
Gain an extra 6% tax credit on domestic production costs.
Enhanced Employer Child-Care Credit
Credit increases to 40% (50% for small businesses), capped at $500,000.
Clean-Energy Business Credits
Extended tax credits available for investments in solar, wind, and other renewable energy projects.
Tax Increases You’ve Avoided:
- Income tax rates rising by 10 percentage points.
- Child credit reduced to $1,000 and becoming non-refundable.
- Standard deduction being cut in half.
- Corporate tax rate reverting to 35%.
- Expiration of valuable equipment write-offs.
Next Steps:
These tax updates represent significant opportunities to optimize your financial strategies. To discuss the specific impact on your tax situation, please contact our office to schedule a consultation.
Call us at (916) 359-9838
