Tax season is here, and while it is rarely anyone’s favorite item on the calendar, a well-prepared tax file can make the process smoother and often uncover planning opportunities that get missed when everything is rushed.
A small but important reminder: Some forms (especially certain brokerage statements and K-1s) can arrive later than others, so don’t be surprised if your preparer recommends waiting until everything is finalized.
What’s new for the 2025 tax year
A few provisions from the One Big Beautiful Bill Act are in effect for tax year 2025 and may apply depending on your situation.
1. Standard deduction amounts increased for 2025
The IRS adjusted the standard deduction for 2025 to:
- $31,500 (Married Filing Jointly / Qualifying Surviving Spouse)
- $15,750 (Single / Married Filing Separately)
- $23,625 (Head of Household)
2. New additional deduction for seniors (age 65+)
For 2025–2028, taxpayers age 65 and older may qualify for an additional $6,000 deduction per eligible person (separate from existing senior add-ons), with income phaseouts beginning at $75,000 (single) and $150,000 (joint).
3. New deductions related to tips and overtime (where applicable)
For 2025–2028:
- A new deduction for qualified tips, up to $25,000 per year, subject to eligibility rules and income phaseouts.
- A new deduction for qualified overtime premium pay (the “extra” portion above regular rate), capped at $12,500 per year ($25,000 for joint filers), with phaseouts at higher incomes.
These items are highly fact-specific, so if they might apply in your household, it’s worth flagging with your tax professional.
The part we care about most: what your tax return tells us.
Once your return is filed, it becomes a planning tool, not just a historical document. Three things we often review with clients after tax season:
- Withholding and estimated tax settings (to reduce surprises next year)
- “Which account to pull from” decisions for retirees (tax bracket management matters)
- Charitable strategy (simple timing changes can sometimes improve tax efficiency)
Through winters, wars, tax seasons and all the good times, our team is here for you. Please do not hesitate to reach out to us.