SAN DIEGO (KGTV) — When it comes to filing your 2025 taxes, financial experts suggest starting early and doing more research because there are a number of changes that went into effect regarding tax breaks.
This year, there may be more money up for grabs for tax filers because of changes to tax breaks implemented through the passage of the Trump administration's One Big Beautiful Bill Act.
Thomas Boles is the owner of Telesis Tax & Financial. He says these tax breaks can help you whether you use a standard tax deduction, which is a set rate predetermined by the IRS, or if you use an itemized deduction, which is where individuals can subtract designated expenses from their taxable income.
The more that can be deducted from your income level can determine how much you get in a tax refund or how much you may have to pay.
Boles says the bulk of the changes revolve around adjustments in deductions for certain things, such as the child tax credit. The previous deduction was $2,000 per child. Now it's been increased to $2,200 per child.
When it comes to the state and local tax cap, also known as the SALT cap, this deduction has also increased. In 2024, the cap was set at $10,000. It has now gone up to $40,000.
"Let's say in 2024 your property tax was $15,000 you only benefit from the $10,000 because that was the cap. Now it 2025, 15,000 that full 15,000 would be an exemption to your schedule A," Boles said.
Other changes include no taxes on overtime pay. Single filers can deduct up to $12,500 of qualified overtime pay.
A new federal tax deduction also allows workers to deduct up to $25,000 in qualified tips, which pertains to tips for jobs like wait staff, bartenders, and personal trainers.
"On the reporting documents, someone who works in the service industry for example they're going to have a new box. That says qualifying tips and those tips are put into the software and they're processed as a non-taxable event," Boles said.
There's also a tax break if you bought a new car in 2025. You can get $10,000 deducted. The caveat is the car must be purchased with a loan and not a lease.
Boles also offers this reminder: Make sure the information you file is correct. If not, you do run the risk of facing penalties from the IRS, which could be a fine of up to $600 for an error on a return.
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