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Essential Tax Preparation Tips for 2025

As tax season approaches, it’s time to prepare efficiently for your tax appointment, whether it’s taking place at our office in Las Vegas, NV, via videoconference, or over the phone. The success of this task largely hinges on how organized your tax records are from the past year. But regardless of your situation, coming fully prepared ensures we maximize your tax benefits and streamline the filing process.

  • Explore every potential legal deduction,

  • Evaluate the most advantageous income reporting tactics,

  • Examine changes in tax laws affecting your status,

  • Discuss strategic tax-planning options to reduce future liabilities.

Noteworthy Tax Changes for 2025

The One Big Beautiful Bill Act (OBBBA) introduces several critical changes this year:

  • No Tax on Tips: Employers now report eligible tips on W-2s or a separate form for 2025. A deduction of up to $25,000 for qualifying tips is provided, phasing out with AGIs over $150,000 for singles and $300,000 for joint filings.
  • No Tax on Qualified Overtime: Deduct up to $12,500 ($25,000 for married couples) for additional overtime income. Phaseouts apply beyond a $150,000 MAGI for singles and $300,000 for married filers.
  • Vehicle Loan Interest Deduction: Deduct up to $10,000 on interest for personal-use vehicles, with phaseouts starting for income ranges between $100,000-$150,000 (single) and $200,000-$250,000 (joint). Image 1
  • SALT Deduction Limit: The SALT deduction expands up to $40,000, phasing down for higher incomes.
  • Super Retirement Catch Up: Individuals aged 60 to 63 can enhance their retirement plan contributions with substantially increased limits.
  • Child Tax Credit: Increased credit amounts and criteria for eligibility, phasing out at certain income levels.
  • Adoption Credit: Expanded with refundable credits sections, phaseout limits, and carryforward options.
  • Section 179 Expensing: Enhanced limits for immediate asset expensing, ideal for small and medium enterprises.
  • Bonus Depreciation: Continuing depreciation benefits for business assets.
  • Research or Experimental Expenditures: Immediate deductibility for domestic expenses; international expenditures remain amortized over 15 years.

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Optimizing Your Tax Strategies

  • Property Sales: Choose between immediate or installment gain reporting.
  • Depreciation Choices: Elect for standard depreciation over years, or immediate full deductions if eligible through Section 179 or bonus depreciation benefits.

Kick-Start Your Tax Prep Journey

Start assembling your documents from January to ensure a smooth preparation process:

  • Organize records into respective income and expenditure categories.
  • Disclosure any foreign financial interests for compliance.
  • Note significant tax-impacting transactions, including cryptocurrency and healthcare impacts. Image 3
  • Tax tips specifically for business owners and self-employed individuals.

The IRS’s vigilance in accurate filings, especially concerning identity validity and transactions such as crypto and overseas dealings, means stringent preparation is crucial.

  • Review all personal data for any changes affecting current filings.
  • File changes in marital status or dependent information promptly and accurately.
  • Address special transactions in detail, ensuring clarity and compliance.

For more guidance or scheduling your tax appointment, don’t hesitate to contact us. Our expertise in personal and business tax preparation is designed to help you achieve optimal financial results while ensuring strict adherence to tax regulations.

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