Important Info for 2025!

Please read below to see if some of the new laws can help you this year

There are several new tax law changes for 2025 that may benefit you. Review the information below to see if you qualify and which documents are required.

To help avoid additional fees, please bring all required documents to your first appointment. Follow-up visits take additional time and may result in extra charges.

No Tax On Overtime

IMPORTANT!!!
If you earned overtime in 2025, check your w2 (box 14) if nothing is noted please bring your final pay stub of the year (based on check date).

You may deduct the portion of overtime pay above your regular rate of pay (often the “half” portion of time-and-a-half).
Deduction limit for 2025: up to $12,500 for single filers or $25,000 for married filing jointly.
Phase-outs begin at $150,000 MAGI for individuals and $300,000 for joint filers.

You can claim it whether you itemize or take the standard deduction
If your W2 (box 14) does not show the overtime wages, please bring your final pay stub of the year (based on check date).
*You must be classified as a non-exempt employee to qualify. Most of our clients will qualify, though some may not. We will review eligibility on a case-by-case basis.

No Tax On Tips

To qualify for the no-tax-on-tips deduction, tips must be reported and included on your W-2. Unreported cash tips do not qualify.

Deduction limit is $25,000
Phase-outs begin at $150,000 MAGI for individuals and $300,000 for joint filers.

Must receive qualified tips and report them (e.g., on W-2).

This deduction applies only to tips reported on your W-2, so no additional documents are needed.

New Car Loan Interest Deduction

A new federal deduction for interest paid on a qualifying personal vehicle loan, available to both itemizers and non-itemizers.

You must meet all of the following:

Loan originated after December 31, 2024 for the purchase of a qualified vehicle.
Vehicle is for personal use (not business).
Vehicle is new and had final assembly in the United States.
Interest is actually paid during the tax year. Max deduction $10,000.

What counts as a qualified vehicle:

Car, SUV, pickup truck, van, minivan, or motorcycle under 14,000 lbs.
Final assembly in the U.S. (shown on the vehicle label or VIN production location). Cars with a VIN starting with 1, 4, or 5 are generally U.S.-assembled.

Use this link to verify where the car was assembled:

https://vpic.nhtsa.dot.gov/decoder/
Used vehicles and leases do not qualify.

What we need you to bring in: (VERY IMPORTANT)

Vehicle loan statement showing interest paid for the year.
Purchase paperwork or loan agreement (to verify loan start date)
Vehicle information (VIN or window sticker showing U.S. final assembly)
There are some income limits:
- Deductions begin to decrease for taxpayers with a Modified Adjusted Gross Income (MAGI) exceeding $100,000 (single) or $200,000 (joint).
- Fully phases out at approximately $150,000 (single) or $250,000 (joint)

Social Security is still taxable

While the proposed elimination of taxes on Social Security was not enacted, a new $6,000 bonus deduction is now available for taxpayers age 65 and older. We will apply this deduction automatically where applicable. Please continue to provide your Social Security income documentation (Form SSA-1099) as usual.

No More Paper Refund Checks

Make sure you have a routing and account number. Paper check by mail is no longer an option