2025 Tax Year Highlights – One Big Beautiful Bill

File Your 2025 Return in 2026 – Key Takeaways for Individuals and Businesses

For Individuals

1. Higher Standard Deduction

• $15,750 for single filers

• $31,500 for married filing jointly

• $23,625 for head of household

2. Extra Deductions for Workers & Seniors

• Certain tipped income and qualifying overtime may be partially or fully excluded from federal taxes

• Seniors (65+) may claim an additional $6,000 deduction

3. Expanded SALT Deduction Cap

• Temporarily increased to $40,000, helping taxpayers in high-tax states

4. Child Tax Credit Support

• Maintains or enhances credit amounts for qualifying children under age 17

For Businesses

1. Small Business & Pass-Through Benefits

• Qualified Business Income (QBI) deduction is permanent and may be expanded

2. Bonus Depreciation & Equipment Write-Offs

• 100% bonus depreciation allows full deduction of qualifying property in the year it’s placed in service

3. R&D & Investment Incentives

• Immediate deductions for research and development costs

• Encourages investment in equipment, infrastructure, and clean energy projects

Planning Tips

• Many benefits apply only through 2028, so consider timing for deductions and credits

• Certain energy credits (solar, EVs, residential clean energy) expire after 2025, so act before year-end

• Work with your tax advisor to maximize deductions and credits, and plan for business investments

Need Help?

AAG Tax & Accounting LLC is here to guide you through bookkeeping, payroll, and tax planning — making sure you take full advantage of 2025 tax benefits.