Retirement Plan Contribution Changes

401(k) / 403(b) / 457 / similar work-plans

• The basic elective deferral limit for 2025 is $23,500.

• If you’re age 50 or older, you can contribute additional “catch-up” contributions of +$7,500 on top of the base limit. For 2025:

• For those age 60-63, a higher “super” catch-up applies: +$11,250.

Individual Retirement Account (IRA) & Roth IRA

• For 2025, you can contribute up to $7,000 total across your IRAs (traditional + Roth).

• If you’re age 50 or older, that limit increases by $1,000

Employers not yet required to separately report overtime amounts → keep your own records.

New deduction for the “extra” portion of overtime pay (2025–2028).

What’s deductible

• You may deduct the part of qualified overtime compensation that is above your regular rate of pay, such as the “half” in time-and-a-half overtime required by the Fair Labor Standards Act (FLSA).

• The overtime must be reported on a Form W-2, Form 1099, or other specified statement.

Dollar limits & phase-outs

• Maximum annual deduction:

  • $12,500 (most filers),

  • $25,000 (married filing jointly).

• Phases out once modified AGI exceeds:

  • $150,000 (single),

  • $300,000 (married filing jointly).

Who can claim it

• Available to both itemizers and standard deduction filers.

New deduction for interest on qualifying car loans for personal vehicles (2025–2028).

What’s deductible

• Interest you pay on a loan used to buy a new, qualifying personal vehicle (not a lease).

• The car must be for personal use, not business or commercial use.

• If you later refinance a qualifying loan, interest on the refinanced amount can still qualify.

• The loan must be secured by the vehicle and:

  • Originate after December 31, 2024, and

  • Be used to buy a vehicle where original use starts with you (used cars don’t qualify)

2025–2028 deduction limits & phase-outs

• Maximum annual interest deduction: $10,000.

• Phases out when modified AGI exceeds:

  • $100,000 (single and most non-joint filers),

  • $200,000 (married filing jointly).

Vehicle requirements – “final assembly in the U.S.”

• The vehicle must:

  • Have a gross vehicle weight rating under 14,000 lbs.

  • Be a car, minivan, van, SUV, pickup, or motorcycle.

  • Have final assembly in the United States.

• You can confirm final assembly by:

  • Checking the label on the vehicle at the dealer, or

  • Using the VIN (Vehicle Identification Number) and the NHTSA VIN Decoder tool referenced by the IRS.

Eligibility and reporting

• Available whether you itemize or take the standard deduction.

• You must list the vehicle’s VIN on your tax return for any year you claim the deduction.

• Lenders must eventually report total interest received on information returns; the IRS is providing transition relief in 2025 while those systems are built.

Extra deduction for taxpayers age 65+ (2025–2028) on top of existing senior standard deduction.

Amount & years

• $6,000 per qualifying individual age 65 or older.

• $12,000 total if both spouses in a married couple are 65+ and file jointly.
• Applies for tax years 2025 through 2028.
• This is in addition to the current “extra” standard deduction seniors already get under prior law.

Eligibility rules

• You must be age 65 or older by the last day of the tax year.

• Available whether you itemize or take the standard deduction.

Income phase-outs

• Deduction phases out when modified AGI exceeds:

  • $75,000 (single or non-joint filers),

  • $150,000 (married filing jointly).

What is 1099-DA

1099-DA stands for “Digital Asset Proceeds From Broker Transactions.”
It’s a new IRS information return created specifically to report sales, exchanges, or other dispositions of “digital assets” such as cryptocurrency, NFTs, stablecoins — whenever those transactions are handled by a “broker.”

Who issues / receives it

The form is issued by “digital-asset brokers,” which generally includes centralized exchanges, crypto trading platforms, payment processors, hosted-wallet providers, and other entities that effectuate or facilitate crypto transactions for customers.

If you sell, exchange, or otherwise dispose of digital assets in 2025 via a broker, you should receive a 1099-DA from them — and the broker is also required to send a copy to the IRS.

What’s reported on 1099-DA

The form will show: The “gross proceeds” — i.e. how much you received from the sale or exchange of digital assets.

The number of units sold, type of digital asset, sale (or exchange) date, and other relevant transaction details.

Important caveat (for now): For 2025 transactions, cost-basis information (i.e. how much you originally paid for the crypto) may not be included on the 1099-DA.

Because of that, you — the taxpayer — are responsible for calculating your cost basis and determining capital gain or loss for your tax return.

Timeline & Effective Year

The 1099-DA requirement for brokers begins for transactions made in calendar year 2025.

You (or any taxpayer who traded crypto/assets in 2025) should expect to receive 1099-DA forms by early 2026 (typically by mid-February) from each broker you used.

What you should watch out for (and what to do)

Because cost basis may not be on 1099-DA, you need to keep good records of your purchases — date acquired, amount spent, transaction history — so you can compute correct gains/losses.

Even if you don’t get a 1099-DA (for example, you transferred assets between wallets, or used a non-broker, or received crypto but didn’t sell), the IRS still expects you to report taxable events. 1099-DA is a tool for compliance — not the sole determinant of taxable activity.

What are Trump Accounts & Form 4547

Trump Accounts are a new, tax-advantaged savings/investment account established on behalf of children (under age 18) under the legislation commonly called the One Big Beautiful Bill Act (OBBBA).

Form 4547 is the “Trump Account Election” form. It’s used to elect to establish a Trump Account for an eligible child — and, for eligible children, to request the $1,000 “pilot-program” seed contribution from the U.S. Treasury.

Who qualifies / Eligibility

Any child under 18 with a valid Social Security number can have a Trump Account opened on their behalf.

To receive the $1,000 government seed contribution, the child must be a U.S. citizen born between January 1, 2025 and December 31, 2028.

Parents or guardians (or other authorized individuals) will be responsible for opening the account using Form 4547.

Contribution rules / account characteristics

After establishing the account, starting July 4, 2026, the account can receive additional contributions. The cap is $5,000 per child per year (aggregate of all non-government contributions).

Employers may contribute, via a “cafeteria plan,” up to $2,500 per year for a dependent child’s Trump Account; that employer contribution counts toward the $5,000 annual cap (but is not taxable to the employee).

For children eligible for the $1,000 seed benefit, that initial contribution from the government does not count toward the $5,000 annual limit.

Restrictions / Withdrawal Rules

Funds in a Trump Account generally cannot be withdrawn until the child turns 18.

Once the child turns 18, the account is treated like a traditional IRA. That means normal IRA rules apply for distributions and withdrawals.

Because of the investment structure mandated by law: funds must be invested in certain low-cost broad U.S. equity index funds (e.g. a fund tracking the S&P 500), with annual fees limited (e.g. ≤ 0.10% per year).

What’s the status now / What you need to know

As of December 2025, the IRS has released a draft Form 4547 and draft instructions. The form will become the official mechanism to make the election.

You can file Form 4547 at any time — including together with your 2025 income tax return.

Actual contributions (aside from the seed amount) can only start July 4, 2026, once the Trump Account system is formally operational.

• No changes to W-2s / 1099s / withholding tables for 2025→ Systems update in 2026 instead

• Penalty relief for employers not yet showing separate tip & overtime amounts in 2025

• You may need to provide pay stubs or employer statements when claiming these new deductions

Beginning September 30, 2025, the IRS will phase out most paper check refunds and move to direct deposit or other secure electronic methods for delivering tax refunds. This means taxpayers filing 2025 returns should expect faster, electronic refunds rather than mailed checks.

Paper refunds will only remain available in limited hardship situations — for example, when a taxpayer does not have a bank account or cannot access electronic payment methods.

To avoid delays, please ensure your bank routing and account information is included with your tax return when we file.

What’s changing / what to watch out for in 2025

Important 2025 deadline: Because of a recent law change, the 30% Clean Energy Credit for residential installations expires after December 31, 2025. If installation is completed after that date, the credit will not be available — even if you paid before then.

These credits are expiring as of December 31, 2025 — meaning 2025 is the last year homeowners can claim the 30% Clean Energy Credit or the Energy Efficient Home Improvement Credit for new installations/ improvements.

 
How it works

The Residential Clean Energy Credit works similarly to the Energy Efficient Home Improvement Credit, allowing homeowners to claim a credit of up to 30% of the cost of the following improvements to their home:   

• Solar, wind, and geothermal power generation   
• Solar water heaters   
• Fuel cells   
• Battery storage    

This residential tax credit has no annual maximum or lifetime limit, so homeowners can claim the full 30% of the total cost of the improvement. Like the Energy Efficient Home tax credit, the Residential Clean Energy Credit is non-refundable. 

What changed in 2025: Expiration of the Credit

Because of legislation in 2025 (One, Big, Beautiful Bill Act / “OBBBA”), the Clean Vehicle Credit is being ended.

• New-vehicle credits as well Used-vehicle credits will no longer be allowed for vehicles acquired after September 30, 2025.

• Similarly, the credit for commercial clean vehicles ends after September 30, 2025.

 In short: you had to acquire (i.e. sign contract and take delivery/payment) for a qualifying clean vehicle by September 30, 2025, to get the federal credit.

 The IRS urges taxpayers to use the tool on the FuelEconomy.gov website for the most up-to-date information on eligible models that were purchased before September 30, 2025.

 If you bought a vehicle before the cutoff, these were typical qualifying rules:

• The vehicle must be a qualified plug-in electric or fuel cell vehicle with adequate battery capacity (or otherwise meet the clean-vehicle definition under IRS rules).

• Income limits applied: for new-vehicle credit, modified adjusted gross income (MAGI) had to be ≤ $300,000 for married filing jointly, ≤ $225,000 for head of household, and ≤ $150,000 for other filers.

• For used EVs under the used-vehicle credit: price cap (sale price under $25,000), purchase from a licensed dealer, and compliance with IRS/dealer reporting requirements.

• Dealers had to be registered with the IRS and file a “time-of-sale” report via the IRS portal shortly (within 3 days) after sale — without that, the credit could be denied.

What It Means for 2025 and After 

As of October 1, 2025: There is no longer a federal Clean Vehicle tax credit for new or used EVs acquired after September 30, 2025.

• If you bought a qualifying vehicle before September 30, 2025 (with a signed binding contract + payment, or delivery by that date depending on IRS guidelines), you may still claim the credit — but timing and documentation (dealer report, IRS compliance) are critical.

• For buys after that cutoff, you’ll need to look for state-level EV incentives, manufacturer discounts, or other non-federal incentives — the federal credit will no longer apply.