As 2025 draws to a close, individual taxpayers face a familiar but evolving tax landscape. Many provisions from the Tax Cuts and Jobs Act have been preserved or extended under the One Big Beautiful Bill Act, while new deductions and adjustments take effect.
Standard Deduction and Age 65+ Benefits
The standard deduction for 2025 is $15,750 for single filers and $31,500 for married filing jointly. For taxpayers age 65 or older, there is a temporary bonus deduction of up to $6,000 per eligible individual.
SALT Deduction Cap Changes
The OBBBA temporarily raises the SALT cap to $40,000 for tax years 2025-2029. A phase-out applies once Modified Adjusted Gross Income exceeds approximately $500,000 (married filing jointly).
Capital Gains and Timing of Income
Tax-loss harvesting allows you to sell underperforming investments to offset realized gains. If capital losses exceed gains, up to $3,000 can be deducted against ordinary income.
Charitable Contributions
Beginning in 2026, the OBBBA imposes new limitations for itemizers including a 0.5% AGI floor on charitable deductions. Consider bunching several years' worth of contributions into 2025.
