tax law changes

ACA- Subsidies disappear at the end of 2025 unless they correct this and add them back during the government shutdown.

Savings Account starts for new babies- Born 2025-2029 The Government will deposit $1000 for each child born in Trump Account. Parents and family members can contribute up to $5000 per year tax free to the account. At age 18, the child can withdrawal the funds for education, home or business start venture. If the child waits until age 30, no restrictions for withdraw.

Tax Free Tips- Tips up to 25K are tax deductible through 2028. Deduction phases out for taxpayers with AGI over $150,000 single or $300,000 joint filers.

No Tax on Overtime Pay-Tax free up to $12,500 (25,000 joint filers)subject to income caps through 2028.

Car Loan Interest deductions- up to $10,000 if income is under 80k through 2028. AGI phases out 100,000 (200,000 joint filers.) This is for cars purchased and has final assembly in the United States.

IRS to Phase Out Paper Refund Checks

The IRS has announced that beginning September 30, 2025, it will begin phasing out paper refund checks for individual taxpayers.

(Full IRS release here)

This change, mandated by Executive Order 14247, is part of a broader push to move all refunds to secure electronic delivery methods whenever permitted by law.

No change in filing process: We will continue to file returns the same way. This announcement only impacts how refunds are issued.

• Refund delivery shift: Refunds will be sent by direct deposit, prepaid debit cards, or other authorized electronic methods. Paper checks will only be available in limited circumstances.

• Client guidance: Everyone needs to have a valid bank account or electronic payment option ready for refund delivery or they will receive a prepaid debit card in the mail instead of a check.

• Security & speed benefits: Paper checks are more prone to being lost, stolen, altered, or delayed. Electronic payments will be faster and more secure for your clients.

• Statistics to share: In the 2025 tax season, over 93.5 million individual refunds were issued. 93% went out via direct deposit, while only 7% were paper checks.

STANDARD DEDUCTIONS FOR 2025

Single 15,000

Married 30,000

Seniors over 65+ get a temporary bonus $6000 per person in Standard Deductions. This also has income limits: 75,000 Single 150,000 Married through 2028.

Snap & Medicaid Changes work requirements for those ages of 18-65 abled adults at least 80 hrs per month. Pregnant women, Parents caring for child under 14, medically unfit for work or part of recognized tribes are exempt from work requirements. Waiver limits are only valid until 2028 and may require volunteer work and lots more paperwork. There will be major cuts as well and many will no longer qualify for benefits. These do not start until 2026-2027.

Student Loan Changes Effective July 2026 Students will only be able to borrow $20,500 max per year with lifetime cap of $100,000.

Public Service workers have many changes from current and restrictions. Basically, a lot more paperwork.

Pell grants will only be awarded for trades and certificates or other short term programs.

Energy & Climate Credits currently have all been phased out. Including clean energy car credits, EV credits, Solar Credits and Energy Home Credits. However, there are many Fossil Fuel Credits added.

Business Lots of enhanced deductions including full equipment depreciation. Pass through deduction (20%) does not start until 2026. Buy new assets!

Business Car Mileage: Can take all actual expenses on business use vehicle including, Gas, Repairs & Maintenance and Insurance (must keep all receipts including gas receipts) or 70 cents per mile without any additional expenses for repairs and maintenance or insurance.

All business vehicles will be able to deduct lic/tag renewal.

Update on BOI filing, a court decision has proven this filing to be unconstitutional, the mandate has been lifted effective March 2nd and you no longer have to file.

Starting in 2025 all businesses will need to file a new report called a Beneficial Ownership Information report. It is basically like our secretary of state in TN annual report, except this is on the federal level and at this point there is no payment due when filing. If you have a partnership, you must enter the information about each partner and upload a state issued ID for each member a long with their personal address and other information requested. It is up and running for 2024 but only required for new businesses formed in 2024. There are some that are exempt from filing as well and you can read all about it here https://fincen.gov/boi UPDATE: There was a lawsuit filed that said that this was unconstitutional and no we no longer have to file. I found this out 12/4/24 at 10pm EST. UPDATE again: You have until March 21st, 2025 to comply or you could face jail time and huge fines. Make sure that you have taken a picture of your ID or passport before starting the form. UPDATE yet again, you no longer have to file effective March 3, 2025.

Be sure to change your address for everyone who will send you tax documents. Tax documents WILL NOT forward.