Big Tax Changes Coming in 2025: What Every Taxpayer Needs to Know. One Big Beautiful Bill Act.

Hey amigos! It's Abdel from Ramos & De La Torre herewith the scoop on some major tax updates heading our way starting in 2025.Whether you’re a family filing jointly, a tipped worker, a small businessowner, or just someone trying to keep more of your paycheck, this bill has something for you. Let me walk you through it, point by point, with my insights so you can understand not only what’s changing, but how it benefits you.

1. Lower Tax Brackets Stay — For Good

Remember how we’ve been enjoying those juicy lower tax rates(10%, 12%, 22%) since 2017? They were set to disappear in 2025. But not anymore! This bill locks them in permanently and gives an extra year of inflation adjustment.

What it means for you:

Your income stays in lower brackets, meaning less money goes to Uncle Sam. A family making $80K will likely save hundreds (or more) each year compared to the old brackets. That’s more cash in your pocket.

2. Bigger Standard Deduction — Locked In

The standard deduction is the amount you subtract from your income before taxes. It's going up and staying up:

$31,500 for joint filers

$23,625 for head of household

$15,750 for singles

Why it matters:

Most people don’t itemize anymore because of the standard deduction. By locking in this higher number, it makes tax filing easier and ensures more of your income is tax-free. Easy. Clean. Beneficial.

3. New $6,000 Deduction for Seniors (2025–2028)

This one’s close to my heart. Seniors 65+ get an extra$6,000 deduction, even if they don’t itemize.

Pro tip:

Married couple where both are seniors? That’s $12,000 off the top.

Catch:

It starts to phase out after $75,000 in income, so it’s targeted at middle-income seniors — those who need it most.

4. Child Tax Credit Gets a Boost

Right now, you get $2,000 per child under 17. Starting in2026, it increases to $2,200 and gets an annual inflation boost.

Breakdown:

Helps working families keep more of their money

Refundable up to a certain amount, so even if you owe nothing, you may get a refund

Bottom line:

More money for groceries, school supplies, and savings.

5. Mortgage Interest Deduction Cap Stays at $750,000

This prevents the cap from going back up to $1 million.

Translation:

Deductions are still available for most average-priced homes. It limits tax perks for luxury properties — and keeps the focus on middle-class homeowners.

6. SALT Deduction Cap Temporarily Increases

For 2025 only, the cap on deducting State and Local Taxes(SALT) jumps from $10,000 to $40,000 — then increases by 1% each year through2029.

Who wins here?

Homeowners in high-tax states like NY, CA, NJ, or even Miami-Dade (yep!).

Heads up:

If you earn over $500,000, the benefit phases out. And in2030, we’re back to $10,000.

7. Deductions Capped at 35% for Top Earners

If you’re in the highest bracket, your itemized deductions will now only reduce your taxes by 35 cents per dollar instead of your full marginal rate.

Example: Donate $10K to charity, but you’re in the 39.6%bracket? You save $3,500, not $3,960.

Why?

To make sure the tax system is fairer — not giving ultra-high earners the biggest breaks.

8. AMT (Alternative Minimum Tax) Adjustments

The bill makes AMT exemptions permanent and phases them out faster for higher incomes.

Why you care:

If you’re middle- or upper-middle-income, this helps you avoid the AMT trap. High-income earners? This makes it harder to dodge taxes with tons of deductions.

9. Charitable Deductions Get a Makeover

You’ll need to donate over 0.5% of your AGI to get any itemized deduction.

BUT you also get a new above-the-line deduction: up to$1,000 for individuals and $2,000 for joint filers, even if you don’t itemize.

Smart move:

It rewards meaningful giving while cutting small "token" donations just for tax breaks.

10. NEW! Tip Income Deduction (2025–2028)

This one’s a game-changer for bartenders, servers, hairstylists, and others in tipped industries:

Deduct up to $25,000 in tips from your taxable income.

Phaseout starts at $150K (single) or $300K (joint).

You read that right:

Your tips could become tax-deductible. Finally, some love for workers who often report income no one else sees!

11. Overtime Pay Deduction (2025–2028)

If you earn OT, you could deduct the premium portion:

Up to $12,500 (single) or $25,000 (joint)

Even if you take the standard deduction

Yes, please.

This is huge for hourly workers putting in the extra grind.

12. Auto Loan Interest Deduction (2025–2028)

You can deduct interest on car loans, but only if:

The car is new

Assembled in the U.S.

Interest paid is up to $10K

Income limits apply: Phases out at $100K (single) or $200K(joint).

Hot tip:

Thinking of buying a new car in 2025? Look for Made in the USA on the sticker.

That’s the breakdown, folks — point by point, with my commentary and examples to help you make sense of all this tax talk.

And remember — these are just the individual tax provisions .Want a breakdown of the business, estate, and international tax changes? I’vegot that coming next.

If you’re not sure how this will affect your situation, or you want to start strategizing early — hit me up. That’s what we’re here for.

Hasta la proxima,

Abdel Celecia

Tax Expert | Ramos & De La To

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