Getting a head start on your 2025 tax preparation can help make this season a little less stressful, while early planning can help you prepare for changes coming to 2026 taxes.
For 2025 taxes (which are due on April 15, 2026), start by:
✔️Gathering key documents (W-2s, 1099s, receipts)
✔️Reviewing income and expenses
✔️Noting any life changes that may impact your return
As you look forward in 2026, consider the following changes as you plan for your taxes this year:
- Under the One Big Beautiful Bill Act, the standard deduction might impact your future tax filing. The updated standard deduction amounts for 2026 will be:
- $32,200 for married filing jointly
- $24,150 for head of household
- $16,100 for single or married filing separately
- If you don't typically itemize, you may reconsider that this year. If you typically take the standard deduction, beginning in 2026 you may additionally deduct cash donations to charities up to:
- $1,000 if filing single
- $2,000 if married filing jointly
➡️Donations must be made in cash and sent to qualified organizations. This is a new option for giving back while managing taxable income without requiring itemization.
- The One Big Beautiful Bill Act increases the Child Tax Credit to $2,200 per eligible child. Other updates to the Child Tax Credit include:
- The credit will be adjusted for inflation in future years
- A valid Social Security number is required for the child
- For joint filers, at least one spouse must have a valid SSN
➡️These updates aim to clarify eligibility and streamline administration.
- Starting in 2026, eligible taxpayers may deduct:
- Up to $25,000 in reported tips
- Up to $12,500 in overtime compensation ($25,000 if married filing jointly)
➡️These deductions phase out for higher-income taxpayers.
- Thinking about solar, EVs, or energy-efficient upgrades? Several energy tax credits expire under the One Big Beautiful Bill Act including:
🚗Clean vehicle credit
🏠Residential clean energy credit
🔋Energy-efficient home improvement credit
➡️The IRS has published FAQs to help with eligibility and phase-out timelines.
As always, give us a call for more information, but don’t make any changes until you speak with your tax, legal, or accounting professional.