What changed on 2025 tax returns

New lines and limits on the 2025 Form 1040

• Schedule 1-A: the new home for four deductionsDeductions on the schedule: 4
• The no tax on tips deduction, for tax preparersMaximum deduction: $25,000 a year
• The qualified overtime deduction: only the premium countsMaximum deduction: $12,500 ($25,000 joint)
• Car loan interest deduction: the preparer’s checklistMaximum deduction: $10,000 a year
• The senior deduction and how it stacks with the age add-onPer eligible person: $6,000 per person
• The $40,000 SALT cap: who gains and where it shrinks2025 cap: $40,000
• Standard deduction and brackets for 2025 and 20262026, married filing jointly: $32,200
• Child tax credit at $2,200, and Trump Accounts for new parentsChild tax credit per child: $2,200
• The adoption credit is now partly refundableRefundable for the 2025 return: $5,000 per child
• The supplemental housing allowance paid to service members is not taxableOne-time payment: $1,776
• Form 4547: the Trump account election, line by linePilot contribution per eligible child: $1,000

Revised 2025 forms and schedules

• Form 1040 changes for tax year 2025Standard deduction, joint (line 12e): $31,500
• Schedule A changes for tax year 2025Line 5e SALT limit: $40,000
• Schedule C changes for tax year 2025Business standard mileage rate, 2025: 70 cents a mile
• Schedule D changes for 2025: digital assets get their own codesNew digital asset codes: G, H, I, J, K and L
• Schedule E changes for landlords, tax year 2025Rental mileage rate, 2025: 70 cents a mile
• Schedule F changes for farm clients, tax year 2025Section 179 limit, 2025: $2,500,000
• Schedule SE changes: the 2025 wage base and the 2026 draft2025 maximum subject to social security tax: $176,100
• Schedule 8812 changes for 2025: the credit rises and the SSN rule tightensChild tax credit per child: $2,200
• Forms 8995 and 8995-A: what changed for 2025Form 8995 threshold, joint: $394,600
• Form 4562 changes for 2025, and what the 2026 draft addsSection 179 limit, 2025: $2,500,000
• Form 5695 for 2025: the last year for the home energy creditsCredits end for expenditures after: December 31, 2025
• Form 8936 for 2025: when a vehicle counts as acquiredNo credit for vehicles acquired after: September 30, 2025
• Form 8962 changes for 2025, and the bigger change coming in 2026New for 2025: Coverage month rule
• Form 8889 for 2025: telehealth no longer breaks HSA eligibilityHSA limit, self-only / family, 2025: $4,300 / $8,550
• Form 1065 and Schedule K-1 changes for 2025New K-1 codes: 13X, 20AZ, 20ZZ
• Form 1120 changes for 2025Minimum late-filing penalty (over 60 days): $525
• Form 1120-S and Schedule K-1 changes for 2025New line 17d codes: BA and ZZ
• Form 1041 changes for estates and trusts, tax year 202520% capital gain rate starts above: $15,900
• Form 709 for 2025: gift tax returns can now be e-filedAnnual exclusion, 2025: $19,000
• Form 940 changes for 2025FUTA wage base per employee: $7,000
• Form 6765: Section G becomes required after 2025Section G required for tax years beginning: After 2025
• Form 3800 changes for 2025: transfer elections move onto the formNew on page 1: Item B, transfer elections

Business and timing items that affect 2025

• Bonus depreciation is back at 100%, and Section 179 doubledBonus depreciation: 100%
• Domestic research costs are deductible againDomestic R&E: Deduct in year paid
• The business interest limit goes back to an EBITDA baseSmall business exemption (2025 gross receipts test): $31 million
• ERC claims for late 2021 filed after January 2024 are barredLate claim cut-off: Filed after January 31, 2024
• Energy credits ending: the cut-off date for each oneClean vehicle credits end: Vehicles acquired after September 30, 2025
• Form 1099-K is back to $20,000 and 200 transactionsGross payments over: $20,000
• IRS paper refund checks are being phased outPaper refunds phased out from: September 30, 2025