For 2025, the Standard Deduction has increased to $15,000 ($14,600 in 2024) for single filers and $30,000 ($29,200 in 2024) for married couples filing jointly, reflecting inflation adjustments. The income tax brackets have also been adjusted accordingly.

The maximum Child Tax Credit limit remains $2,000, with a maximum refundable amount of

$1,700. The credit begins to phase out for higher income taxpayers at $200,000 if single and

$400,000 if married and filing jointly. The dependent care credit continues to cover up to $3,000 in expenses for one child and $6,000 for two or more children. In order to qualify for 2024, a child must have a Social Security number and be under the age of 17 at the end of the year.

Health Savings Accounts (HSA) contribution limits have increased significantly. The maximum contribution for self-only coverage is now $4,300 ($4,150 in 2024) for individual coverage and

$8,550 ($8,300 in 2024) for family coverage. Account holders age 55 and older can make an additional $1,000 catch-up contribution.

The FinCEN Beneficial Ownership Information Report requirement continues for "smaller" business entities (20 or fewer full-time employees). If you own or control part or all of an LLC or corporation that has 20 or fewer full-time employees, please mention this to us as penalties for non-compliance remain severe.

"Green energy" tax credits have been expanded for 2025. The credits now cover various energy­ efficient home improvements and clean vehicles. If you've invested in solar panels, energy-efficient windows or doors, electric vehicles, or other green energy improvements, please provide complete documentation to maximize your available tax benefits.

For Retirement Savings, the contribution limit for 401 (k) plans has increased to $23,500, with an additional $7,500 catch-up contribution allowed for those over age 50. The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401 (k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan remains $7,500 for 2025. Therefore, participants in most 401 (k), 403(b), governmental 457 plans and the federal government's Thrift Savings Plan who are 50 and older generally can contribute up to $31,000 each year, starting in 2025. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500.

Each year, the IRS sets the Annual Gift Tax Exclusion, which allows a taxpayer to give a certain amount (in 2025, $19,000) per recipient tax-free without using up any of the taxpayer's lifetime gift and estate tax exemption (in 2025, $13.99 million). For married couples, this means that they can give $38,000/year per recipient beginning next year, shielding a total of $27.98 million without having to pay any federal estate or gift tax.

The deduction for Student Loan Interest remains available up to $2,500 and begins phasing out at higher incomes of $75,000 single/$155,000 joint filers. The employer student loan repayment program that allows certain employees to count their student loan repayments as 401 (k) contributions for matching purposes continues to be available.

Cryptocurrency reporting requirements have increased. Cryptocurrency exchanges are required to issue 1099s for transactions, making it essential to maintain detailed records of all crypto transactions.

For small businesses, the Section 179 deduction limit has increased to $1,220,000 for qualified equipment purchases. The phase-out begins at $3.05 million in asset purchases.

The maximum Earned Income Tax Credit has been adjusted for inflation for low- and moderate­ income workers. The credit now ranges from $632 to $7,830 depending on income and number of children.

The Foreign Earned Income Exclusion has been adjusted for inflation to $120,000, allowing

qualifying U.S. citizens working abroad to exclude this amount from their taxable income.

The Social Security wage base limit has increased to $168,600, meaning earnings above this amount are not subject to Social Security tax. However, all earnings remain subject to Medicare tax.

Remote workers should note that several states have updated their tax reciprocity agreements and remote work policies. If you work remotely for an employer in another state, please provide details about your work arrangement to ensure proper state tax compliance.

To ensure we have all the necessary information to complete your tax return accurately, please provide the following documents that apply to you:

• Form W-2 from all employers showing wages and withholding for the year

• Form 1099-INT showing interest income from banks and investments

• Form 1099-DIV reporting dividends from investments

• Form 1099-R showing distributions from IRAs or retirement plans

• Form 1099-G showing unemployment income or state/local tax refunds

• Form 1099-K reporting income from self-employment, side jobs, or gig work

• Form 1099-MISC for any miscellaneous income received during the year

• Form 1099-NEC if you worked as an independent contractor

• Form 1098 showing mortgage interest and property taxes paid

• Form 1099-DA for cryptocurrency transactions

• Receipts for charitable donations made in cash or property

• Receipts for expenses related to self-employment or rental properties

• Records of cryptocurrency transactions needed to calculate capital gains/losses

• Any other tax documents received from employers, banks, brokerages, etc.