FRESNO, Calif. (KFSN) — As the IRS starts accepting and processing 2025 federal tax returns, there are major changes to navigate.<\/p>\n
The passage of the One Big Beautiful Bill includes modifications to standard deductions, and potential new tax breaks for Americans.<\/p>\n
“That was a transformative piece of tax legislation largest I’ve seen in 40 years and mostly for good.”<\/p>\n
Jackson Hewitt, Chief Tax Officer, Mark Steber says it’s important to stay organized and file early, as filing for year 2025 could come with complications, “If you’re getting tips as part of your income two things to note. 2025 is part of a transition year they passed it last summer so a lot of the infrastructure wasn’t in place to make it simple with a box on your W2. So it’ll be important to keep up with your tips for this year and a good pro can tell you what to bring and how to do that.”<\/p>\n
Steber says there’s a distinction between service fees and tips.<\/p>\n
The service fee for like 6 or more vs a tip. The IRS has been pretty clear on that that is not a tip that’s a service charge. If you’re getting tips not the service fee but tips you might be eligible for up to $25,000 and that’s an important new deduction that can be confusing and overwhelming.”<\/p>\n
New deductions are also in place for seniors.<\/p>\n
“If you’re 65 or older on December 31, you get a brand new deduction of 6,000 dollars per person,” he says.<\/p>\n
Steber says this is the case whether you draw social security or don’t, “That’s not to be confused with the former, still in place, senior tax deduction or the larger standard deduction potentially so its a brand new one and for all three of these you do not have to itemize.<\/p>\n
One big purchase can bring new savings, if you bought a new car last year.<\/p>\n
If you purchased a car in 2025 and took a loan to buy that and it was assembled in the United States you can get up to 10,000 in tax deductible interest expense no need to itemize its a new thing on the form.<\/p>\n
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