1. What major tax law changes affect 2025?

The One, Big, Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several

new provisions:

• No tax on tips: Up to $25,000 of qualified tips may be deductible.

• No tax on overtime: Deduction available for qualified overtime compensation.

• No tax on car loan interest: Deduction for interest on loans for qualifying passenger

vehicles.

• Enhanced deduction for seniors.

• Increased standard deduction and Child Tax Credit (CTC).

 

2. What are the 2025 federal income tax brackets?

For single filers:

• 10%: $0–$11,925

• 12%: $11,926–$48,475

• 22%: $48,476–$103,350

• 24%: $103,351–$197,300

• 32%: $197,301–$250,525

• 35%: $250,526–$626,350

• 37%: $626,351+

For married filing jointly, the brackets are roughly double those for single filers.

[bipartisanpolicy.org]

 

3. How do I update my withholding for 2025?

You can adjust your withholding using:

• The 2025 Form W-4, Step 4(b) Deductions Worksheet.

• The IRS Tax Withholding Estimator, which reflects some but not all OBBBA provisions.

• A tax professional for personalized guidance. [irs.gov]

 

4. What is the new standard deduction for 2025?

• Single: $15,000

• Married filing jointly: $30,000

• Head of household: $22,500 [nysscpa.org]

 

5. Are there changes to the Earned Income Tax Credit (EITC)?

Yes. The maximum EITC for taxpayers with three or more qualifying children is $8,046, up from

$7,830 in 2024. [nysscpa.org]

 

6. What deductions are new or enhanced in 2025?

• Qualified tips: Deductible up to $25,000.

• Overtime compensation: Deductible.

• Vehicle loan interest: Deductible if loan originated in 2025.

• Senior deduction: Enhanced for eligible taxpayers. [irs.gov]

 

7. What if I owe back taxes or need help resolving tax debt?

You may:

• Explore Installment Agreements, Offer in Compromise, or Currently Not Collectible

status.

• Work with a licensed tax resolution professional or enrolled agent.

2025 Tax Preparation FAQ

**1. When is the tax filing deadline for 2025?

April 15, 2026 is the deadline to file your 2025 federal income tax return.

2. What documents do I need to file my taxes?

You’ll typically need:

• W-2s from employers

• 1099s for freelance, interest, or investment income

• Receipts for deductible expenses (charity, mortgage interest, medical, etc.)

• Form 1098 for mortgage interest

• Records of estimated tax payments, if any

3. What are the standard deduction amounts for 2025?

• Single: $15,000

• Married filing jointly: $30,000

• Head of household: $22,500 [nysscpa.org]

4. What’s new in 2025 due to the One, Big, Beautiful Bill Act (OBBBA)?

• Deduction for qualified tips (up to $25,000)

• Deduction for overtime compensation

• Deduction for car loan interest (on loans originated in 2025)

• Enhanced deduction for seniors

• Increased Child Tax Credit

• Higher SALT deduction cap [irs.gov]

5. How can I file my taxes?

• E-file using tax software (recommended for speed and accuracy)

• IRS Direct File (free for eligible taxpayers in 25 states)

• Mail (slower—can take 4+ weeks to process)

• Tax professional or enrolled agent

6. Should I itemize or take the standard deduction?

• Itemize if your deductions (e.g., mortgage interest, medical expenses, charitable

donations) exceed the standard deduction.

• Otherwise, take the standard deduction—now higher due to OBBBA.

7. How do I update my withholding for 2025?

• Use the 2025 Form W-4, Step 4(b) Deductions Worksheet.

• Or consult a tax professional.

• The IRS Withholding Estimator reflects some 2025 changes, but not all. [irs.gov]

 

8. What if I can’t pay my taxes in full?

You can:

• Apply for an Installment Agreement

• Submit an Offer in Compromise

• Request Currently Not Collectible status

 

IRS wants you to know about schemes, scams and cons

“If it sounds too good to be true, it probably is!” Don’t become a victim to any scheme that

offers instant wealth or exemption from your obligation as a United States citizen to file tax

returns and/or pay taxes. Some of these schemes can literally cost you your life savings. Others

can result in your prosecution and imprisonment if you knowingly participate in them.

 

Abusive return preparer

Taxpayers should be very careful when choosing a tax preparer. While most preparers provide

excellent service to their clients, a few unscrupulous return preparers file false and fraudulent

tax returns and ultimately defraud their clients. It is important to know that even if someone

else prepares your return, you are ultimately responsible for all the information on the tax

return.

 

Abusive tax schemes

Abusive tax scheme originally took the structure of fraudulent domestic and foreign trust

arrangements. However, these schemes have evolved into sophisticated arrangements to give

the appearance that taxpayers are not in control of their money. However, the taxpayers receive

their funds through debit/credit cards or fictitious loans. These schemes often involve offshore

banking and sometimes establish scam corporations or entities.

 

Non-filer enforcement

There have always been individuals who, for a variety of reasons, argue taxes are voluntary or

illegal. The courts have repeatedly rejected their arguments as frivolous and routinely impose

financial penalties for raising such frivolous arguments. Take the time to learn the truth about

frivolous tax arguments.

 

Report a tax scam or fraud

To help the public recognize and avoid abusive tax schemes, the IRS offers an abundance of

educational materials. Participating in an illegal scheme to avoid paying taxes can result in

imprisonment and fines, as well as the repayment of taxes owed with penalties and interest.

Education is the best way to avoid the pitfalls of these “too good to be true” tax scams.