October 2025 Newsletter

OCTOBER 2025 NEWSLETTER

The "Big Beautiful Bill" Should Have You Thinking

Tax season just got a little more interesting—and not in the “brace yourself” kind of way. Thanks to 2025’s updates, there are new deductions that could put real money back in your pocket. Below are just a few of the changes. As always please consult your tax professional to discuss how the new tax laws will affect you.

Overtime pay deduction: Individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay. The maximum annual deduction is $12,500 ($25,000 for joint filers). Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

Deduction on Qualified Tips: “Qualified tips” are voluntary cash or charged tips received from customers or through tip sharing. The maximum annual deduction is $25,000; for self-employed, although the deduction may not exceed an individual's net income. The deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

Car-loan interest: Individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria. (Lease payments do not qualify.) The maximum annual deduction is $10,000. The deduction phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).

Extra $6,000 deduction for older tax filers: Individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law. The $6,000 senior deduction is per eligible individual (or $12,000 total for a married couple where both spouses qualify). The deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).

On a personal note, Alexis was home with all her Abington friends, as everyone came home for Columbus Day weekend. This was especially nice because while she was home, she turned 19 years old. I can’t believe my little girl is 19. She loves college life and she’s making a lot of new friends. I love driving her back, as we get to have some quality time in the car and also get to hit one of Connecticut’s best pizza places before I drop her off. Nick is doing great on and off the ice. The team lost 8 seniors, so the first half of the year is going to be a challenge while the news kids get use to the pace at this level. They have their home opener next week and they will raise the championship banner and get their championship rings before the game.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.