The Big Beautiful Bill – Tax Law Changes

New tax laws are coming into play next year, and us here at Reyes Tax Services are more than informed to handle them, but you also need to be familiarized with them too so you also don’t get caught off guard.

Taxpayers over 65 years old get an extra $6000 deduction each.
Increased Child Tax Credit (children under 17) from $2000 to $2200 with a refundable portion of $1700. All children should have a valid Social Security number and at least one parent.
Child and Dependent care tax credit increases from 35% to a max of 50% of the amount paid with a minimum of 20% of the cost.
No tax on tips of up to $25000 per couple per year, social security number required. Last paystub needed at time of filing.
No tax on overtime up to $12500 per Taxpayer per year, social security required. Last paystub needed at time of filing.
Interest on a new car or motorcycle loan will be deductible up to $10000 a year, vehicle must be assembled in the US, must have been purchased starting January 1, 2025, banks will issue a form 1099 to show amount of interest paid during the year.
State taxes deductions increase from $10000 a year to $40000, this include Sales Tax, Property Tax, Employment Taxes, Car Registration and other state taxes.
Education credits will only apply to individuals with a valid social security number.

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The Big Beautiful Bill – Tax Law Changes

Taxpayers over 65 years old get an extra $6000 deduction each.

Increased Child Tax Credit (children under 17) from $2000 to $2200 with a refundable portion of $1700. All children should have a valid Social Security number and at least one parent.

Child and Dependent care tax credit increases from 35% to a max of 50% of the amount paid with a minimum of 20% of the cost.

No tax on tips of up to $25000 per couple per year, social security number required. Last paystub needed at time of filing.

No tax on overtime up to $12500 per Taxpayer per year, social security required. Last paystub needed at time of filing.

Interest on a new car or motorcycle loan will be deductible up to $10000 a year, vehicle must be assembled in the US, must have been purchased starting January 1, 2025, banks will issue a form 1099 to show amount of interest paid during the year.

State taxes deductions increase from $10000 a year to $40000, this include Sales Tax, Property Tax, Employment Taxes, Car Registration and other state taxes.

Education credits will only apply to individuals with a valid social security number.