In the Black: August 2025

How the new tax bill might affect you

The Good, The Bad, and The Ugly for 2025

The Good:

• Increased SALT Cap: This will be helpful to my clients in CA, NY, and other high-tax states, and also to people who pay property tax on homes they own - we’ll be able to use more of this.

• Increased Child Tax Credit: Moves the Child Tax Credit up to $2,200 - still lower than the credit under Biden at $3000 - but more than it was.

• Car Loan Interest: Becomes deductible.

The Bad:

• EV Tax Credits: ended as of 9/30/2025, and Home Energy Credits (solar) end in 2025.

• Obamacare/ACA Funding: is cut, which will increase premiums this fall for many.

The Ugly:

• The main parts of the bill lower the tax bills of corporations (lowering their tax %), and wealthy Americans (Estate tax changes for tax-free transfer up to 15 million), among other changes.

• These changes are paid for by cutting funding to many programs, notably Medicare and Medicaid.

This bill is 900 pages long - so these are just the highlights of what will change in 2025. There's a lot more that happens in 2026 that we’ll be unpacking and folding into the tax planning that we are doing as we work on your Q3 estimates, and some that we’ll talk about as we work on 2025 taxes.
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Speaking of Q3 estimates, they aren’t due until mid-September, but you’ll hear from us in the coming weeks as we start work on them.

Stay cool out there.