Federal Income Tax Changes – 2025

Upon successful completion of this course, participants will be able to:

Chapter 1

• Identify the individual income tax rate changes affecting taxpayers;
• Calculate the standard mileage deductions for –
  • Use of a personal vehicle for business purposes,
  • Use of a personal vehicle to obtain medical care, and
  • Charitable use of a personal vehicle;
• Identify the 2025 standard deduction amounts available to taxpayers;
• Comprehend the tax changes resulting from the One Big Beautiful Bill Act (OBBBA), impacting 2025 income including-
  • Deduction for State and Local Taxes (SALT Deduction),
  • Tip deduction,
  • Tax on overtime,
  • Car loan interest deduction;
  • Clean Energy Incentives,
  • Bonus Depreciation,
  • Research and Development expenses,
  • Sustainable Aviation Fuel Credit, and
• Limitation of Business Interest; Recognize the changes made to the alternative minimum tax exemption amount for 2025;
• Apply the tax-free United States savings bond income limits for taxpayers who paid qualified higher education expenses in 2025;
• Calculate the tax-deductible premiums for and tax-free benefits received under qualified long-term care insurance contracts;
• Determine the amount of assets that may be passed tax-free at death; and
• Identify the qualified business income (QBI) threshold amount

Chapter 2

• Calculate the retirement savings contribution credit available to eligible taxpayers;
• Recognize the rules and income limits applicable to eligibility for the earned income credit; and
• Apply the adoption credit rules.

Chapter 3

• Health flexible spending arrangement contribution limits;
• Small business health care tax credit; and
• Large employer shared responsibility provision.

Chapter 4

• Recognize the eligibility rules applicable to Archer MSAs and HSAs;
• Calculate the maximum contributions that may be made to an Archer MSA;
• Apply the tax treatment rules to contributions to and distributions from Archer MSAs and HSAs;
• Calculate the traditional IRA tax deduction available to a taxpayer who is an active participant in an employer-sponsored retirement plan; and
• Recognize the MAGI limits that apply to a taxpayer’s eligibility to make a Roth IRA contribution.

Chapter 5

• Identifying the provisions designed to expand retirement plan coverage and increase retirement savings;
• Describing the provisions designed to enable plan participants to preserve their retirement income;
• Listing the provisions that simplify retirement plan rules; and
• Identifying those provisions designed to enhance federal revenue.

Chapter 6

• Recognize the new standard deduction amounts;
• Describe the new maximum state and local tax (SALT) deduction;
• Describe the new senior deduction;
• Explain the provisions of OBBBA that –
  • Increase the Child Tax Credit;
  • Provide for tax deductions for –
    • tip income;
    • overtime pay;
    • new car loan interest; and
    • Eliminate certain clean energy incentives.