RECENT NEWS

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Tax Season Summer of 2025
July 2025

Dear Valued Client and Friend,

Hope you had a wonderful long and safe 4th of July weekend. There is so much to be thankful for in this the greatest country in the world. We are blessed compared to the rest of the world.

The Big Beautiful Bill Act (OBBBA) has been passed and there is much in it that will benefit all of us in 2025 and beyond. The hope is that it will stimulate the economy for growth. Before we jump into the profundity of this bill, some reminders first.

The 2024 tax returns and related taxes are due this October 15, 2025. If you live in Los Angeles, because of the wildfires, you do need to pay the taxes but no penalties.

This deadline also applies to estimated taxes for 2025 due April 15, June 15th and September 15.
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Many of you have still have not filed and should contact as soon as you can.

MAJOR TAX PROVISIONS:

• One of the most important is Permanent Extension of 2017 Tax Cuts and Jobs Act (TCJA) Provisions. Existing 7 brackets from 10%-37%.
• Higher Standard Deduction amount to $15,750 for singles and $31,500 for joint filers.
• Increased Child Tax Credit from $2,000 to $2,200 if under 17 years of age on December 31, 2025.
• Seniors over 65 get an additional $6,000 deduction if under $75,000 as single and $150,000 for joint filers. You still get $6,000 if you don't itemize. This is meant to help with taxable Social Security  benefits.
• Auto loan interest deduction even if you don't itemize up to $10,000.
• Tip income deduction for up to $25,000 if income under $150,000 and $300,000 if joint.
• Deduction for overtime pay up to $12,500 with limitation of modified adjusted gross income of $150,000 for single and $300,000 for joint filers.
• SALT or State and Local taxes deduction has been raised to $40,000 from $10,000. Phase out at 4% for income over $250,000 for single and $500,000 for joint filers.
• Section 179 expensing has been increased to $2,500,000.
• Tax advantage savings accounts for children including $1,000 for newborns between 2025-2028.
• Research and Development expensing for businesses with no income limitations.
• Tax filing deadline for paying taxes in 2026 for 2025 will be April 15, 2026.
• There will still be penalties for late filing and underpaying fees for prior years.

FINANCIAL PLANNING:

Many of us live paycheck to paycheck and forget about setting some money aside for a rainy day fund or retirement or both. Try some budgeting so you can reduce your day to day spending and save for the unexpected which is sure to come.

Be careful of getting overexcited about investment opportunities: If it is too good to be true, it probably is. A strong Balance Sheet is so important before investing.

Before making any important or expensive decisions, please check with us first.

If married or if you have a significant other, please keep them informed about important financial decisions and location of valuable documents.

Please make sure you contact us before you make major financial decisions that can affect your wealth. It could save you thousands of dollars!

We are here to help you with your planning and questions. Please contact us at
310-374-8832.

Thank you for trusting us.
Sincerely,
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Chuck Anderson
Chuck Anderson, C.P.A., Inc.
[email protected] 

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Tax Season 2024-2025
January 2025

Happy New Year to each of you and thank you very much for your support over the years.

Let's make this the best year ever as we work our way through the upcoming 2024 tax filing year....READ MORE...