Robert Roper, CPA, and Phil Mitchell, CFA, CPA, have highlighted some key tax provisions and takeaways from the passage of the most recent tax reform, which was signed into law on July 4, 2025. In our opinion, despite its breadth, the bill does not contain major economic changes for everyone. There are changes that will uniquely benefit key areas of the tax code as outlined below. While the lower tax brackets (TCJA) were set to expire at the end of 2025, most will now remain in the same tax bracket as in the previous few years. Tax rates are staying the same. This is the lions share of the cost of this legislation.
Takeaway: The senior deduction will be a key planning factor for seniors as phase-outs of taxable social security income as well as other deductions will be vital.
Takeway: This is an area to closely watch for anyone who lives in high tax states. High-income taxpayers in high-tax states may see limited benefits. Consider bunching deductions or timing payments.
Takeaway: This is the best kind of deduction, an above-the-line deduction not subject to itemized deductions restrictions.
Takeaway: Most filers have not been able to take advantage of charitable deductions since the last major tax reform so ensure that you’re tracking your cash donations and providing them at tax time to receive the deduction.
Takeaway: This will help workers across numerous industries and income ranges.
Takeaway: The child tax credit is a popular credit among families who are looking to reduce their tax liability and the pilot savings program could help spurn long-term savings for education or first-time home buying expenses.
Other items of note:
Takeaway for other items: Just a few of the numerous provisions of the bill have been highlighted within. Please contact us if you have specific questions on how the bill will impact your personal income tax or retirement plan.
We are happy to assist you in understanding these latest tax changes. Give us a call at 616-356-2002 or complete our contact form today.