Tax season brings child tax credit changes and updates for seniors

Tax season, although a few months away, is a good time to start preparing for upcoming changes. Mark Steber from Jackson Hewitt Tax Services discussed modifications to the child tax credit and updates for seniors. It’s definitely an important topic. Many might not think it’s necessary to prepare early, but even if you’re not wealthy, everyone has some income these days. Waiting until the last minute can be stressful, right? Planning a bit in advance can be very beneficial. So, let’s talk about these changes.

There are significant updates, especially concerning the child tax credit. For 2025, this credit could go up to $2,200 per child. It’s a tried and true benefit that many families are starting to utilize more than ever. Interestingly, refunds for those with low or no tax liabilities are also seeing an increase. Additionally, the standard deduction has been raised, along with a new deduction tailored specifically for seniors aged 65 and older, which amounts to $6,000 per individual and $12,000 for couples.

You might have heard about some other deductions too, right? If you find yourself earning up to $25,000, there’s a deduction of $12,500 for overtime. And if you bought a U.S.-made car last year and rented it out—like quite a few people did—you can deduct interest up to $10,000. Plus, property tax thresholds have definitely shifted, increasing from $10,000 to $40,000.

There’s definitely a lot to unpack heading into 2025. It can feel overwhelming, particularly with life changes, and other issues that might pop up in states like California. So, given all these complexities, how do we avoid making mistakes?

Well, best practices come from experience. With forty years in the field, I believe in knowing the rules to navigate them successfully. It’s essential to educate yourself to prevent falling victim to misinformation. If you’re unsure how these changes might affect your situation, it might be a good idea to consult a qualified tax professional. It really helps to have guidance, especially so you don’t leave any money on the table.

Thanks for your time, Mark, and for joining us to discuss this critical topic.