Category Archives: Deductions
Rising vehicle prices and higher interest rates have made financing a car more expensive than ever. Fortunately, a major change in federal tax law—passed as part of the One Big Beautiful Bill Act (OBBBA)—is providing much-needed relief. For the first time in decades, certain taxpayers can now deduct auto loan interest from their federal taxes. […]
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The State and Local Tax (SALT) deduction has long been a focal point for taxpayers in high-tax states. Starting in 2025, a landmark change to federal tax law significantly expands this benefit. This guide covers everything you need to know about the new limits, phaseouts, and how to maximize your tax savings. What Is the […]
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Taxpayers preparing for the 2025 federal return season have a new opportunity to lower their taxable income—but it requires preparation. Under the One Big Beautiful Bill Act, new deductions for overtime premiums and tip income take effect for the 2025 tax year. While these deductions can significantly increase refunds for eligible workers, early IRS guidance […]
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If you’re 65 or older, your 2025 tax return (filed in 2026) could include significantly larger deductions thanks to new federal tax law changes and IRS inflation adjustments. A new $6,000 senior bonus deduction—created under the July 2025 tax package often referred to as the “Big, Beautiful Bill”—is now available beginning in tax year 2025. Combined with the increased […]
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The principle of giving teaches that abundance flows into your life when you share with others. This doesn’t always mean money—it can be expressed through kindness, appreciation, or time. What truly matters is the generosity behind the act. While the emotional rewards of giving are priceless, the financial rewards are tangible. When you donate to […]
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This year has been devastating for many, with 33 states already impacted by federally declared disasters. Catastrophic events like Hurricanes Milton and Helene have resulted in billions of dollars in damages, leaving countless individuals without adequate insurance to cover their losses. If you’ve been affected, the federal disaster loss tax deduction may offer some much-needed […]
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An attempt by Congress to end the medical expense deduction caused an intense reaction because it would have affected people in nursing homes and those with costly chronic diseases. In the end, the deduction was retained and made slightly more generous by lawmakers. They lowered the threshold from 10 percent to 7.5 percent of income […]
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The tax overhaul also suspended many other deductions or imposed new limits on them while targeting major write-offs such as mortgage interest and state and local taxes. These changes usually expire in late 2025. On Schedule A, a grab bag of items, Congress eliminated deductions for miscellaneous expenses. The change removed deductions for unreimbursed travel, […]
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As a result of the overhaul, the number of tax returns claiming deductions for charitable contributions is expected to fall by more than 50%. For 2018, approximately 15 million filers will take this write-off, compared to approximately 36 million for 2017. The standard 2018 deduction is almost double the 2017 level, rising from $6,350 to […]
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The overhaul made a significant change to the alimony payments tax status. For divorce and separation agreements signed after 2018, payers will not be able to deduct alimony on their tax returns. At the same time, future recipients will no longer be required to report these payments as income, making their tax treatment similar to […]
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