2025 standard deduction:
SINGLE STATUS $15,750
MARRIED/JOINT FILERS $ 31,500
FILERS OLDER THAN 65 YRS OLD $2,000
IF TAXPAYER QUALIFIES:
ADDITIONAL DEDUCTION $1,600
ADDITIONAL DEDUCTION $ 1,600
ADDITIONAL DEDUCTION $ 2,000
BONUS DEDUCTION/TAX RELIEF (FROM YR 2025 TO 2028):
IF YOU ARE 65 OR OLDER CAN DEDUCT UP TO $ 6,000
MODIFIED ADJUSTED GROSS INCOME (MAGI) UP TO $75,000/SINGLE $ 6,000
MODIFIED ADJUSTED GROSS INCOME (MAGI)UP TO $150,000/JOINT FILERS $ 6,000
***The deduction phases out if you exceed $175,000 (single) $250,000 (for a couple)***
DEDUCTION ON CAR LOAN INTEREST:
IF THE CAR LOAN INTEREST IS ORIGINATED ON OR AFTER JANUARY 1, 2025, THEN, UP TO $10,000 CAN BE DEDUCTED. LIMITATIONS APPLIED ( MAGI $100,000 SINGLE/$200,000 COUPLES, THEN DEDUCTION TAPERS OFF BY $200 FOR EVERY $1,000 OF ADDITIONAL INCOME.
EXPANDED BREAKS FOR STATE AND LOCAL TAXES:
THE NEW TEMPORARILY DEDUCTION INCREASES DE LIMIT TO $40,000 FOR TAXPAYERS WITH MODIFIED ADJUSTED GROSS INCOME BELOW $500,000.
CERTAIN EARNINGS FREE FROM INCOME TAX:
EMPLOYEES AND SELF-EMPLOYESS CAN DEDUCT UP TO $25,000 OF TIP INCOME RECEIVED IN CUTOMARILY AND REGULARLY OCCUPATIONS, FOR EXAMPLE: RESTAURANT WORKERS, DOG WALKERS, TUTORS, COMPANIONS FOR OLDER PEOPLE, TAXI AND RIDESHARE DRIVERS.
MAXIME DEDUCTION IS $12,500 FOR SINGLE (WITH MAGI BELO
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