No income tax on tip income - a deduction for tip income is available to individuals through the year 2028 regardless of whether or not they itemize their deductions . The tips must be received from customers for services in industries where tips are customary . The deduction is limited to $ 25 , 000 , with a phase - out for taxpayers with modified adjusted gross income over $ 150 , 000 and $ 300 , 000 for joint filers . However , this deduction is not available to certain “ specified service trade or business ” ( i . e ., those in the fields of health , law , accounting , actuarial services , performing arts , consulting , athletics , banking , financial and brokerage services , and farming ). No income tax on overtime pay - a deduction for overtime pay is available to individuals through the year 2028 regardless of whether or not they itemize their deductions . The deduction is limited to $ 12 , 500 of qualified overtime income and $ 25 , 000 for joint filers with a phase - out for taxpayers with modified adjusted gross income over $ 150 , 000 and $ 300 , 000 for joint filers . Car loan interest deduction – allows an interest deduction of up to $ 10 , 000 on an auto loan for U . S . made vehicles . This will expire in 2029 . An increase in the child tax credit amount – There ’ s an increase of $ 200 for 2025 to $ 2 , 200 that will be adjusted for inflation in future years . Savings accounts for newborns – These accounts will be funded with an initial $ 1 , 000 government contribution and are eligible to receive up to $ 5 , 000 per year in parental after - tax contributions . Dependent care expenses - Flex - spending accounts are increased to $ 7 , 500 . Business incentives – These include reinstating 100 % immediate expensing for machinery , equipment , and Research and Development R & D expenses . Small business stock exclusion ( Section 1202 ) – There is a 50 % exclusion on the gain from the sale of qualified small business stock issued after the date of enactment that is held for at least three years . This increases to 75 % exclusion when held for at least four years and a 100 % exclusion when held for at least five years . Also , the gross asset limitation to qualify is increased to $ 75M , and the per - taxpayer gain exclusion cap is increased to $ 15M .
The above changes may affect your tax liability . Please feel free to reach out to us if you have any questions on how these changes will impact your financial plan .
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