Welcome

Provisions affecting most individuals:

Stealing the “Tax Cookies”:

1. Employee Business Expense permanently repealed: No deductions for Union Dues, Safety Shoes, Railroader mileage etc. Ask employer about reimbursement. Self Employed can still deduct on business schedule.
2. Clean Electric Vehicle Credit (plug in cars/trucks). Terminated September 2025.
3. Home Energy Credit dies December 31, 2025. For Energy Star rated windows, exterior doors, Furnace and A/C insulation and solar panels, wind and geothermal.
4. Contractors building Energy Efficient homes (not #3). Credit “dies” June 30, 2026.

Adding to the “TAX COOKIE JAR”:

5. Lower Tax Rates Permanently Extended. Tax Brackets are 10, 12, 22, 24, 32, 35 and 37%. See “Facts and Figures” Section for discussion.
6. Standard Deduction: Current law permanent (No sunset). For Tax years 2025-2028 temporary increase: $1,000 for Single, 1,500 for Head of Household and 2,000 for Joint Filers in addition to increases for inflation.
7. Standard Deduction. Temporary. Tax Years 2025-2028. IF Over Age 65 with income below 75,000 Single or 150,000 Joint Filers, additional $4,000 per filer.
8. Car Loan Interest Deduction. No itemization/long form required! If assembled in US. Includes Car, Minivan, Sport Utility, Truck or Motorcycle. Deduct up to $10,000 if Adjusted Gross Income is under $100,000 Single or $200,000 Joint Filers.
9. Itemizers: State and Local Tax (SALT includes real estate taxes) limits increased from $10,000 to $40,000 Joint Filers, 20,000 all other filers (per Draft 2025 Schedule A) .
10. NEW Charitable Deduction for NON ITEMIZERS for Tax Years 2025-2028.Claim IF take Standard Deduction. For Cash or equivalent (Debit Card/Check) Contributions to 501C3 Charity. $1,000 Single, $2,000 for married filing Jointly. Deduction Records still required. If more than these limits must Itemize (Schedule A) to claim.
11. 2025 Child Tax Credit is $2,000 per child under 17 and $500 per dependent for all others. For 2027 and subsequent years, Child Tax Credit increased for inflation.
12. New Tax Credit: 2025 for Charitable Contributions to IRS Certified Charity’s (501c3’s) providing scholarships to Elementary and Secondary school students such as school choice programs. Careful: If also contribute to Ohio Scholarship Charity Credit-Federal Credit is reduced by the State Credit.
13. Tips—Tax Years 2025—2028 ONLY. Report on Tax Return. Deduction equal to Tips reported=no tip tax. Best practice=Report & deduct! See “Tips” section for more info.
14. No Tax on Overtime. Tax Years 2025—2028 ONLY. Again same as #13. Non taxable if it’s reported AND properly deducted. See “Tips & Overtime” Section for info.
15. Student loans. If student disabled or deceased, no Cancellation of Debt income
16. Expanded use of 529 Tax Education Accounts. For Elementary, Secondary School, Home School, qualified credentialing expenses (e. g. Bar Exam). Up to 20,000 year.
17. Educator (Teacher Classroom Supplies) Expense Deduction, increased to $1,000
18. Health Savings Account expanded. Qualify IF: working, have High Deductible Medical Insurance Plan (Includes Marketplace Plan), or Bronze plan that is NOT HSA rated can qualify.  Benefits pay for: Certain oral contraceptives, Male Condoms, Routine Breast Cancer Screenings (no Cancer Diagnosis), Direct Primary Care if monthly fee less than $150 Single/$300 Joint Filers.

    Fitness membership programs up to $500/year Single or $1,000 Joint Filer. See IRS Notice 2026-05 for more info.
    

19. Qualified Business Income Deduction (20% of Net Profits for Sole Proprietorship, Partnerships and limited other business entities) made permanent
20. Business owners 100% Bonus Depreciation for equipment purchases from January 20, 2025 – December 31, 2030
21. 1099 MISC/NEC Form (Rents, Contractor etc) reporting. Starting 2025 Tax Year, Form reporting threshold changed from $600 to $2,000. (Translation/Example: if pay contractor $1,999 in 2025 tax year for business agreement, Not legally required to give/file 1099. Contractor liable for taxes on ALL monies received. Penalties Apply. Act wisely.)
22. 1099K (Ebay sellers etc) Form reporting threshold increased to $20,000 or 200 transactions.
23. Farmland Sales: New rule, if sell farmland to an IRS Qualified Farmer (think young farmer starting out or extended family), Seller reports sale in one Tax Year. Capital Gains tax is paid over four years (lowers overall Tax). Sales agreement must stipulate that Buyer is required to hold and use purchased farmland for ten years after sale to qualify. IRS and Tax Writers should issue more guidance. See 26 USC 1062.

IRS will be supplementing information. Will Keep you posted.