Key tax updates to pay attention to this filing season

The recent passage of the Big Beautiful Act last year means taxpayers should be aware of some significant changes as the tax filing season gets closer. When it comes to state and local taxes, there’s a cap on what you can pay depending on your adjusted gross income. A notable point for servers is President Trump’s commitment not to tax tips, though there are some limitations. The tax exemption on tips is capped at $25,000 per return. So, for a married couple filing jointly, it’s still just $25,000—not $25,000 for each person, as tax partner John Karp from Whitley Penn explains. On the family front, the child tax credit has gone up by $200 this year. There are also what some are calling “Trump accounts” for children born after 2024. If you want to secure a $1,000 account, the simplest method is to submit Form 4547 with your taxes this year. Mark your calendars—the IRS will start accepting applications on January 26th.