Recent tax legislation has introduced some noteworthy deductions for 2025. They are:
- For tip-based jobs workers can deduct $25,000 in tips annually. Also, workers may deduct their overtime pay. Both of these are deductions whether you itemize or take the standard deduction.
- $6,000 senior deduction for those over age 65. For a married filing joint return where both taxpayer and spouse are qualified individuals, the maximum annual deduction is $12,000. This is in addition to the standard deduction.
- The SALT (State and local income taxes, property taxes and sales tax) has Increased From 10,000 To 40,000. This may move some people from the standard deduction into itemizing.
- For vehicles purchased new for personal use that are manufactured in the United States up to $10,000 of interest per year can be deducted.
Recent Comments