Tax Topic 7
Budget Bill Tax Provisions
ONE BIG BEAUTIFUL BILL
With over 100 Tax provisions this bill has stopped a couple of trillion in scheduled tax increases.
Provisions impacting the 2025 TAX YEAR for Individuals Include:
➢ Deductions for $6,000 of taxable Social Security per individual.
➢ TIPS deduction of up to $25,000.
➢ Overtime Pay deduction of up to $12,500 ($25,000 joint). The deduction is for pay over regular wages.
➢ Up to $10,000 interest expense deduction for 2025 or later purchase of a personal vehicle assembled in the USA.
➢ All deductions have phased out provisions based on Modified Adjusted Gross Income (MAGI).
➢ Due to budget restraints, these deductions are not for complete exclusion from taxation as Trump requested, but they are a start.
➢ There are many other provisions and expiring provisions made permanent.
Be sure to start your 2025 Tax Planning as early as possible before the December 31st Deadline.
David R Dye, CEP
804-980-0502
804-745-4242
David.dye@taxbizsol.com