{"id":373,"date":"2025-09-24T04:00:35","date_gmt":"2025-09-23T22:30:35","guid":{"rendered":"https:\/\/myexpenseplanner.in\/blog\/?p=373"},"modified":"2025-09-24T04:00:36","modified_gmt":"2025-09-23T22:30:36","slug":"tax-planning-2025-irs-changes","status":"publish","type":"post","link":"https:\/\/myexpenseplanner.in\/blog\/tax-planning-2025-irs-changes\/","title":{"rendered":"Tax Planning 2025: IRS Changes, Deductions and SALT"},"content":{"rendered":"\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><h2>Table of Contents<\/h2><nav><ul><li><a href=\"#introduction\">Introduction Tax Planning 2025: IRS Changes<\/a><\/li><li><a href=\"#irs-changes-for-2025\">IRS Changes for 2025<\/a><ul><li><a href=\"#standard-deductions-brackets\">Standard Deductions &amp; Brackets<\/a><\/li><li><a href=\"#new-deductions-under-the-one-big-beautiful-bill\">New Deductions Under the \u201cOne Big Beautiful Bill\u201d<\/a><\/li><li><a href=\"#other-federal-updates\">Other Federal Updates<\/a><\/li><\/ul><\/li><li><a href=\"#how-to-use-these-deductions-in-2025\">How to Use These Deductions in 2025<\/a><\/li><li><a href=\"#state-vs-federal-tax-burdens\">State vs. Federal Tax Burdens<\/a><ul><li><a href=\"#states-with-highest-burdens\">States With Highest Burdens<\/a><\/li><li><a href=\"#states-with-lowest-burdens\">States With Lowest Burdens<\/a><\/li><li><a href=\"#why-it-matters\">Why It Matters<\/a><\/li><\/ul><\/li><li><a href=\"#practical-tax-planning-tips-for-2025\">Practical Tax Planning Tips for 2025<\/a><\/li><li><a href=\"#conclusion\">Conclusion<\/a><\/li><li><a href=\"#plan-smarter-with-the-right-tools\">Plan Smarter With the Right Tools<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"introduction\">Introduction Tax Planning 2025: IRS Changes<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Tax season never gets easier\u2014but 2025 brings some of the <strong>biggest updates in years<\/strong>. From new IRS deductions to adjustments in state and federal tax burdens, understanding what changed is key to avoiding surprises and maximizing your savings. Here\u2019s your <strong>complete guide to tax planning in 2025<\/strong>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-opt-id=1266531421  fetchpriority=\"high\" data-dominant-color=\"89a9b7\" data-has-transparency=\"false\" style=\"--dominant-color: #89a9b7;\" decoding=\"async\" width=\"1024\" height=\"576\" sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"https:\/\/ml9yn5u1fvhb.i.optimole.com\/cb:rmiU.f32\/w:1024\/h:576\/q:mauto\/f:best\/https:\/\/myexpenseplanner.in\/blog\/wp-content\/uploads\/2025\/09\/Blue-White-and-Teal-Modern-Tax-Strategies-Finance-Presentation.avif\" alt=\"Tax Planning 2025: IRS Changes, Deductions and SALT\" class=\"wp-image-375 not-transparent\" srcset=\"https:\/\/ml9yn5u1fvhb.i.optimole.com\/cb:rmiU.f32\/w:1024\/h:576\/q:mauto\/f:best\/https:\/\/myexpenseplanner.in\/blog\/wp-content\/uploads\/2025\/09\/Blue-White-and-Teal-Modern-Tax-Strategies-Finance-Presentation.avif 1024w, https:\/\/ml9yn5u1fvhb.i.optimole.com\/cb:rmiU.f32\/w:300\/h:169\/q:mauto\/f:best\/https:\/\/myexpenseplanner.in\/blog\/wp-content\/uploads\/2025\/09\/Blue-White-and-Teal-Modern-Tax-Strategies-Finance-Presentation.avif 300w, https:\/\/ml9yn5u1fvhb.i.optimole.com\/cb:rmiU.f32\/w:768\/h:432\/q:mauto\/f:best\/https:\/\/myexpenseplanner.in\/blog\/wp-content\/uploads\/2025\/09\/Blue-White-and-Teal-Modern-Tax-Strategies-Finance-Presentation.avif 768w, https:\/\/ml9yn5u1fvhb.i.optimole.com\/cb:rmiU.f32\/w:1536\/h:864\/q:mauto\/f:best\/https:\/\/myexpenseplanner.in\/blog\/wp-content\/uploads\/2025\/09\/Blue-White-and-Teal-Modern-Tax-Strategies-Finance-Presentation.avif 1536w, https:\/\/ml9yn5u1fvhb.i.optimole.com\/cb:rmiU.f32\/w:1920\/h:1080\/q:mauto\/f:best\/https:\/\/myexpenseplanner.in\/blog\/wp-content\/uploads\/2025\/09\/Blue-White-and-Teal-Modern-Tax-Strategies-Finance-Presentation.avif 1920w\" \/><figcaption class=\"wp-element-caption\">Tax Planning 2025: IRS Changes, Deductions and SALT<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"irs-changes-for-2025\">IRS Changes for 2025<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"standard-deductions-brackets\">Standard Deductions &amp; Brackets<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Standard deduction<\/strong>: $15,000 (single), $30,000 (married filing jointly), $22,500 (head of household).<\/li>\n\n\n\n<li><strong>Tax brackets<\/strong>: Same 7 rates (10%\u201337%), but income thresholds adjusted for inflation.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"new-deductions-under-the-one-big-beautiful-bill\">New Deductions Under the \u201cOne Big Beautiful Bill\u201d<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>No tax on tips<\/strong>: Deduction up to $25,000 of reported tip income. Phases out at $150k (single) \/ $300k (joint).<\/li>\n\n\n\n<li><strong>No tax on overtime<\/strong>: Deduct the overtime portion of pay above regular rate.<\/li>\n\n\n\n<li><strong>Auto-loan interest deduction<\/strong>: Up to $10,000 interest deductible for U.S.-assembled vehicles.<\/li>\n\n\n\n<li><strong>Extra senior deduction<\/strong>: Additional $6,000 deduction for taxpayers age 65+.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"other-federal-updates\">Other Federal Updates<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>SALT cap increase<\/strong>: Deduction for state &amp; local taxes rises to $40,000 (through 2029).<\/li>\n\n\n\n<li><strong>Child Tax Credit<\/strong>: Continues at $2,000 per child under 17, with income phase-outs.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-use-these-deductions-in-2025\">How to Use These Deductions in 2025<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Track <strong>tip income and overtime<\/strong> separately for maximum benefit.<\/li>\n\n\n\n<li>Consider buying a <strong>U.S.-assembled car<\/strong> if you need one\u2014the loan interest could be deductible.<\/li>\n\n\n\n<li>Seniors (65+) should claim the <strong>extra $6,000 deduction<\/strong> if they meet income limits.<\/li>\n\n\n\n<li>Run the numbers: sometimes the <strong>standard deduction<\/strong> still beats itemizing, even with higher SALT limits.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"state-vs-federal-tax-burdens\">State vs. Federal Tax Burdens<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"states-with-highest-burdens\">States With Highest Burdens<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Hawaii, New York, California, Vermont<\/strong> lead with combined burdens above 12\u201313% of income.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"states-with-lowest-burdens\">States With Lowest Burdens<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Alaska, Florida, Texas, Nevada, Washington<\/strong> stand out for having no state income tax.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"why-it-matters\">Why It Matters<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The expanded <strong>SALT deduction<\/strong> makes life easier for residents in high-tax states, but only for households under $500k\u2013$1M income thresholds.<\/li>\n\n\n\n<li>If you live in a low-tax state, you won\u2019t benefit much from the SALT cap lift\u2014but you already save on state taxes.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"practical-tax-planning-tips-for-2025\">Practical Tax Planning Tips for 2025<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Estimate your income early<\/strong> to know which deductions you qualify for.<\/li>\n\n\n\n<li><strong>Keep records<\/strong> of tips, overtime, loan interest, and state taxes paid.<\/li>\n\n\n\n<li><strong>Update your W-4 or estimated tax payments<\/strong> if new deductions or higher income changes your liability.<\/li>\n\n\n\n<li><strong>Check state-specific rules<\/strong>\u2014your state may not mirror federal deductions.<\/li>\n\n\n\n<li><strong>Plan ahead<\/strong>: these new deductions are temporary (most end by 2028).<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"conclusion\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Tax planning in 2025 is all about <strong>using new deductions wisely<\/strong> and understanding how your state\u2019s tax system interacts with federal law. Whether it\u2019s tips, overtime, or higher SALT caps, small moves now can lead to big savings at filing time. For complex cases, always consult a tax professional\u2014but with smart planning, you\u2019ll keep more money in your pocket this year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"plan-smarter-with-the-right-tools\">Plan Smarter With the Right Tools<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Want to see how these IRS changes and deductions could impact your own finances? Use our free <strong>tax and savings calculators<\/strong> to forecast your future and make smarter money moves.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udc49 Check them out here:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/myexpenseplanner.in\/\">My Expense Planner<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/myexpenseplanner.in\/blog\/financial-calculators\/\">Financial Calculators Blog<\/a><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction Tax Planning 2025: IRS Changes Tax season never gets easier\u2014but 2025 brings some of the biggest updates in years. From new IRS deductions to adjustments in state and federal tax burdens, understanding what changed is key to avoiding surprises and maximizing your savings. Here\u2019s your complete guide to tax planning in 2025. IRS Changes [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[67,69,63,70,64,65,68,62,66],"class_list":["post-373","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-deductions-2025","tag-federal-taxes","tag-irs-updates","tag-personal-finance","tag-retirement-planning","tag-salt-cap","tag-state-taxes","tag-tax-planning-2025","tag-us-taxes"],"_links":{"self":[{"href":"https:\/\/myexpenseplanner.in\/blog\/wp-json\/wp\/v2\/posts\/373","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myexpenseplanner.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myexpenseplanner.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myexpenseplanner.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/myexpenseplanner.in\/blog\/wp-json\/wp\/v2\/comments?post=373"}],"version-history":[{"count":3,"href":"https:\/\/myexpenseplanner.in\/blog\/wp-json\/wp\/v2\/posts\/373\/revisions"}],"predecessor-version":[{"id":383,"href":"https:\/\/myexpenseplanner.in\/blog\/wp-json\/wp\/v2\/posts\/373\/revisions\/383"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/myexpenseplanner.in\/blog\/wp-json\/wp\/v2\/media\/375"}],"wp:attachment":[{"href":"https:\/\/myexpenseplanner.in\/blog\/wp-json\/wp\/v2\/media?parent=373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myexpenseplanner.in\/blog\/wp-json\/wp\/v2\/categories?post=373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myexpenseplanner.in\/blog\/wp-json\/wp\/v2\/tags?post=373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}