Schedule A changes for tax year 2025

Line 5e now limits state and local income, sales and property taxes to $40,000, or $20,000 married filing separately. The limit shrinks once modified AGI passes $500,000 ($250,000 married filing separately), but not below $10,000 ($5,000 married filing separately).

The IRS says the tips, overtime, car loan interest and senior deductions are claimed on Schedule 1-A, not Schedule A, even for clients who itemize. Line 8d on the 2025 form is still marked reserved for future use.

Anyone who paid well over $10,000 of state income and property tax and took the standard deduction under the old cap deserves a second look. So does anyone near the phase-down start, where a bonus or a capital gain can shrink the limit.

• High property-tax homeowners.
• Clients in high income-tax states with modified AGI under the phase-down start.
• Clients who paid into a governmental paid family leave program, which the 2025 Form 1040 instructions say can count as state and local tax for itemizers.

Property tax bills with the dates paid, state estimated payment confirmations and the prior-year state refund amount. For business owners, ask whether a state pass-through entity tax was paid, since it changes what lands on line 5a.

Clients can upload these through the HelloBooks client queries tool, where the request sits on the return and reminds the client automatically until it is answered.