Following the enactment of several new tax law provisions during mid-2025, taxpayers may have questions about changes to their tax filings for this year. We’ve highlighted the major ones that can affect individuals below.
Although certain aspects of your 2025 filing will be different from years’ past, thorough preparation remains key. By starting early and following our recommendations, you can help minimize the risk of delays.
Look back at 2025
The two most important questions to ask yourself when beginning to pull your documents for your 2025 tax return are “What’s the same as last year?” and “What’s changed?”
To figure out what needs to be repeated, both prior year federal and state (if applicable) tax returns serve as valuable references when preparing for the current year’s filing. By examining last year’s return, you can identify which income reporting documents to collect, including those related to earned wages, investments, and interest-bearing accounts.
Then, consider any changes that have occurred over the last year. Significant life events such as employment transitions, marriage, or relocation may influence your tax situation. These include:
- Getting a new job
- Becoming self-employed
- Getting married
- Getting divorced
- Having a child or adopting a child
- Moving
- Opening new investment accounts
- Establishing new entities
- Bankruptcy
- Large gifts
- Creating new estate planning instruments such as trusts
Gather all relevant tax documents, receipts, and notices
Once you have prepared a list of all pertinent income sources and recent changes affecting this year’s filing, the process of collecting supporting documentation should be streamlined. Remember that although employers are required to distribute necessary forms by the end of January, delays can occur. The following documents may be required:
- W-2s from employers
- 1099s pertaining to miscellaneous, contract, or other payments received
- 1099-INT for interest from savings accounts or certificates of deposit
- 1099-B for broker and barter exchange transactions
- 1099-DIV for dividends and distributions
- 1099-R for retirement plan distributions
- 1099-NEC for independent contractors
- 1099-K for third-party payment processor income (e.g., PayPal, Venmo)
- 1099-S for real estate transaction proceeds
- 1099-MISC for rental or other miscellaneous income
- 1099-G for unemployment compensation
- 1098 Mortgage Interest Statement, if applicable
- Documentation for estimated tax payments
- Records of medical, educational, childcare, or other expenses
- Receipts for charitable contributions
- Receipts substantiating deductible expenses, particularly for self-employed individuals or business owners
- Confirmation of contributions to HSA and IRA accounts
Additionally, if you have received notices regarding prior year filings, provide these to your tax preparer as they may be critical to filing your 2025 return. With the notices in hand, your preparer can advise on the specific requirements relevant to your situation and avoid any confusion with the IRS.
Review key OBBBA changes
On July 4, 2025, the One Big Beautiful Bull Act (OBBBA) was enacted. This legislation removed specific tax incentives, introduced new ones, and permanently extended numerous provisions that were originally set to expire under the Tax Cuts and Jobs Act (TCJA).
Although your tax partner will be aware of these changes, here’s a brief list of what to expect. If you have questions about any of these provisions and how they’ll affect your 2025 tax return filing, reach out to your tax partner for clarification.
For the 2025 tax year, OBBBA:
- Permanently enacts the TCJA’s individual tax rates and nearly doubles the standard deduction, with slight increases effective for 2025.
- Introduces an additional deduction of up to $6,000 for taxpayers aged 65 or older and under certain income thresholds for tax years 2025 through 2028.
- Establishes a new deduction of up to $25,000 for tip income in occupations that customarily and regularly receive tips, applicable from 2025 through 2028.
- Provides a new deduction of up to $12,500 for single filers, or $25,000 for joint filers, for qualified overtime pay from 2025 through 2028.
- Implements a new deduction of up to $10,000 for qualified passenger vehicle loan interest on the purchase of certain vehicles for 2025 through 2028.
- Raises the cap on the state and local tax deduction from $10,000 to $40,000 for taxpayers under certain income thresholds in 2025, with annual 1% increases through 2029.
- Broadens the range of expenses eligible for tax-free Section 529 plan distributions, effective for distributions made after July 4, 2025.
- Permanently increases the child tax credit to $2,200 starting in 2025, with adjustments for inflation each year.
- Expands the exclusion for qualified small business stock gains for stock acquired after July 4, 2025.
- Increases the federal gift and estate tax exemption to $15 million for individuals beginning in 2026, subject to annual inflation adjustments.
- Sunsets clean energy tax credits generally after 2025; however, the clean vehicle credit concludes on September 30, 2025.
Shift to electronic methods (including TaxCaddy)
As of Sept. 30, 2025, the IRS has transitioned to electronic refunds and payments, with very few exceptions, to help expedite processing times and minimize fraud and other risks associated with paper checks. Tax refunds will primarily be sent via direct deposit. The IRS provides several options for electronic payments, including IRS Direct Pay, ID.me accounts, wire transfers, and more. Learn more about the shift to digital-only tax refunds and payments
Also, unless there are specific instructions from the IRS that call for paper filing, electronic filing is often faster and more efficient. By filing electronically, you can expedite both processing and refunds, often within a matter of weeks.
For collecting documentation, Mowery & Schoenfeld uses TaxCaddy, which allows both clients and accountants to see the same files, ensuring nothing is lost in transit or forgotten at home. This platform enables secure electronic document sharing, direct communication with your preparer, e-signatures, and efficient filing of all necessary returns. For more information or to enroll, contact us at taxcaddy@msllc.com.
Check out our Tax Planning Guide for more information about key updates from OBBBA, practical tips, and more. And reach out to your Mowery & Schoenfeld tax advisor if you have any questions.
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READ MORE: Why monitoring AGI matters more than ever under OBBBA
READ MORE: Qualified Small Business Stock rules under OBBBA
READ MORE: OBBA’s state and local tax (SALT) changes, explained
READ MORE: What’s changing? The OBBBA’s impact on clean energy credits
READ MORE: How the OBBBA changes charitable deductions