In this letter, you’ll find a summary of key tax law changes, important deadlines and actionable planning ideas. Whether you’re looking to maximize deductions, plan for retirement or address life changes, we’re here to provide guidance and support every step of the way.

Let’s work together to make sure you’re prepared for year-end and beyond!

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New temporary deductions for tips, overtime, car loan interest and seniors (2025-2028)

• Up to $25,000 of qualified tips; up to $12,500 ($25,000 joint) of overtime premium pay

• Up to $10,000 of interest on loans for new, U.S. assembled vehicles (MUST be assembled in the U.S. not just U.S. owned company)

• Additional senior deduction of up to $6,000 if you are age 65 or older available to those who itemize or claim the standard deduction.

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Charitable contribution planning

With changes coming in 2026 to the charitable deduction, it will be important to review your plans to discuss the best timing and structure for your charitable giving.

• Qualified charitable distributions (QCDs) are another beneficial option for those over age 70 ½ who don’t typically itemize on their tax returns. A QCD counts toward your required minimum distribution (RMD) and is excluded from taxable income, especially valuable if you do not itemize deductions.

• Even if you do not itemize you can donate $1,000 single or $2,000 married for a income adjustment.

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Energy tax credits and green incentives

• Most green incentives have sunset as of September 2025.

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Estate and gift tax planning

• The federal estate and gift exemption will increase to $15 million per person ($30 million per couple) for transfers after Dec. 31, 2025, with future inflation adjustments.

• The annual gift exclusion for 2025 and 2026 is $19,000 per recipient.

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State and local tax deduction

• The cap on the deduction for state and local taxes is temporarily increased to $40,000 ($20,000 for married filing separately) for 2025 through 2029

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Digital assets and virtual currency

Digital assets are defined as any digital representation of value that are recorded on a cryptographically secured distributed ledger or any similar technology. For example, digital assets include non-fungible tokens (NFTs) and virtual currencies, such as cryptocurrencies and stablecoins.  Beginning with transactions occurring in 2025, the IRS has implemented new reporting requirements. For certain transactions through a broker or certain digital asset platforms, you may receive a new Form 1099-DA in early 2026. It is important to note that you are responsible for accurately reporting all taxable digital asset transactions on your tax return, even if you do not receive a Form 1099-DA.

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Electronic payments to and from the IRS

In March 2025, President Trump signed an executive order requiring all federal disbursements, including IRS tax refunds to be made electronically rather than by paper check, effective Sept. 30, 2025. According to the IRS, payments to Treasury can still be made using the current acceptable methods until guidance is released to provide a timeline for electronic payments. We recommend reviewing your current refund and payment methods to ensure compliance and to avoid delays or complications in the future. Please let us know if you would like to discuss how these changes might affect you.

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Additional tax and financial planning considerations

We recommend you review your retirement plans at least annually. That includes making the most of tax-advantaged retirement saving options, such as traditional individual retirement accounts (IRAs), Roth IRAs and company retirement plans. It is also advisable to take advantage of health savings accounts (HSAs) that can help you reduce your taxes and save for medical-related expenses.

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Here are a few more important tax and financial planning items to consider:

• Life changes –– Let us know about any major changes in your life such as marriages or divorces, births or deaths in the family, job or employment changes, starting a business and significant expenditures (real estate purchases, college tuition payments, etc.). These events often create both tax and planning opportunities.

• Capital gains and loss harvesting –– Consider tax benefits related to using capital losses to offset realized gains. Selling underperforming assets before year-end can help manage taxable income.

• Education planning –– Save for education with Sec. 529 plans. There can be income tax benefits to do so, and there have been changes in the way these funds can be used.

• Required minimum distributions (RMDs) ––RMDs are the minimum amount you must annually withdraw from your retirement accounts once you reach a certain age (generally age 73). Failure to do so can result in significant penalties.

• Roth IRA conversions –– Evaluate the benefits of converting your traditional IRA to a Roth IRA to lock in lower tax rates on some of your pre-tax retirement accounts.

• Estimated tax payments –– With underpayment interest rates currently at 7% for federal, it is a good idea to review withholding and estimated tax payments and assess any liquidity needs.​

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Year-end planning equals fewer surprises

As the year draws to a close, thoughtful planning can help you minimize surprises and position yourself for greater financial success. Our team is committed to guiding you through these changes and helping you make informed decisions tailored to your unique situation. 

 

If you have any questions you can reach out to us at 318-251-2196 or 318-927-6456. Together, we can identify opportunities, address any concerns, and ensure your tax and financial strategies are aligned with your goals. Thank you for trusting us.

Sincerely,

Tonya & Stephanie