New Tax Changes for 2025: What You Need to Know!
OLIVER INVESTMENTS LLC Tax Update Newsletter – July 2025
Dear Valued Clients and Friends,
I'm excited to share important updates from the One Big Beautiful Bill Act (just so you are aware, this is the legal name for the bill...not what I am calling it), which introduces significant tax changes starting in 2025. These updates could impact your financial planning, so I've summarized the key points below to help you stay informed.
Key Tax Changes Starting in 2025 For Everyone: Standard Deduction Increase: $15,750 for single filers; $31,500 for joint filers.
State and Local Tax (SALT) Deduction: Increased to $40,000 (temporary through 2028). You must itemize in order to take SALT tax deduction.
For Seniors (65+) Bonus Deduction: $6,000 additional deduction (2025–2028). This is on top of your standard deduction.
For Workers: No Tax on Tips: Up to $25,000 in tips is now tax-free. You must report them, and this is NOT on the State TAX level.... just Federal.
No Tax on Overtime: Up to $12,500 (single filers) or $25,000 (joint filers) is tax-free. Same thing here, this applies to FEDERAL not State taxes.
For Business Owners: Qualified Business Income Deduction (QBID): 20% deduction is now permanent.
Capital Expensing: 100% restored, offering significant savings.
For Families Child Tax Credit: Increased to $2,200 per child.
Dependent Care Limits: Raised to $7,500 for greater support.
For Estate Management Estate Tax Exemption: Increases to $15 million (single) or $30 million (joint), starting 2026.
Important Note: Some of these changes are temporary (2025–2028). To understand how these updates apply to your unique situation, I strongly recommend consulting a tax professional. Take Action Today
Don’t miss out on potential savings! Contact me to schedule a consultation and explore how these tax changes can benefit you or your business. I am Here to Help! I are committed to keeping you informed and prepared for what’s ahead. If you have questions or need personalized advice, reach out to me today! Best regards,
Jake Oliver
Financial Adviser
Oliver Investments LLC.
207-380-1898
www.JakeOliverInvestments.com
Jake@JakeOliverInvestments.com