Whats exactly changing & what it means for you
Being in school may seem like a huge financial burden for some, but if you have the right team beside you, they can make sure that your education and work save you money for the time you’ve put in.
Here are just a few of the ways you can maximize tax savings, potentially saving thousands of dollars per year.
Increased Standard Deduction: The standard deduction has been raised for 2025 to $15,750 for single filers, $23,625 for head of household, and $31,500 for married filing jointly, increasing the amount of income shielded from taxes.
For example, if you’re married and filing jointly, you can now deduct up to $31,500 from your income before paying taxes, reducing your taxable income and your overall tax bill.
Additional Deduction for Seniors: Taxpayers age 65 and older can claim an additional $6,000 deduction effective through 2028, phased out for higher incomes. This offers extra tax relief for older Americans.
For example, Older Americans can lower their taxable income further, which can mean paying less in taxes or increasing potential refunds.
Expanded SALT Deduction Cap: The State and Local Tax deduction cap has been raised to $40,000 for incomes under $500,000, allowing more local and property taxes to be deductible, potentially benefiting taxpayers in high-tax states.
For example, Taxpayers in high-tax states like New York or California might save more on their itemized deductions, lowering their taxable income.
No Tax on Tips and Overtime Income: Certain workers will not pay tax on tip income up to $25,000 and overtime income up to $12,500, providing more take-home pay for hourly and tipped workers.
For example, If you work in a tipped job or earn extra overtime, you get to keep more of that income without higher tax bills.
Child Tax Credit Increase: The credit increases from $2,000 to $2,200 per qualifying child and will be indexed for inflation, helping families with children.
For example, Families will owe less in taxes or receive larger refunds, helping support children and dependents.
End of Electric Vehicle Credit: The EV tax credit ended as of September 30, 2025, altering incentives for electric vehicle purchases.
For example, if you’re planning to buy an EV, the federal tax credits are no longer available, potentially increasing the cost.
Small Business Tax Benefits: The bill offers important tax savings opportunities for small businesses, including reinstated bonus depreciation and expanded expensing limits, allowing for greater deductions and investment incentives.
If you run a small business and purchase $5 million worth of qualified machinery or equipment in 2025, you could immediately write off the entire $5 million on your tax return for that year (not having to spread deductions over multiple years). For instance, you can use Section 179 to deduct up to $2.5 million and then apply 100% bonus depreciation on the remaining $2.5 million.
Trump Savings Accounts: New tax-deferred accounts for children born from 2025 to 2028, with a $1,000 tax credit for opening, offering a new way to save for education, housing, or retirement
For example, Parents and guardians can save more for their child’s future, with initial tax savings at account opening.
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Disclaimer: The information provided in this article is for general informational purposes only and should not be considered as professional tax advice. Consult with Simply AHT for personalized guidance based on your specific needs.
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