Enjoying the show? Support our mission and help keep the content coming by buying us a coffee.The 2025 tax year is here, bringing with it a wave of notable changes that could significantly impact your finances. From new deductions for tipped workers to a temporary jump in the SALT cap, staying informed is crucial for optimizing your tax return.In this episode, we're cutting through the jargon to give you a clear, practical guide to navigating the 2025 tax landscape. We'll start by demystifying the difference between a tax deduction (which lowers your taxable income) and a tax credit (which reduces the tax you owe, dollar for dollar).Next, we'll break down the biggest changes, including:New Above-the-Line Deductions: For the first time, you can deduct up to $25,000 in qualified tip income and $12,500 in overtime pay, even if you don't itemize.SALT Deduction Increase: The cap for state and local tax deductions has temporarily jumped from $10,000 to $40,000, a massive change for homeowners in high-tax states.Child Tax Credit Bump: The credit is now a permanent $2,200 per child, with up to $1,700 of that being refundable.Important Deadlines: We’ll give you a heads-up on clean energy credits for EVs and home solar that are sunsetting at the end of the year.We'll also offer smart strategies for different groups, including a checklist for the self-employed (like deducting business miles at $0.70/mile) and tips for investors (like tax loss harvesting).Finally, we’ll discuss how to use your tax refund strategically—whether it’s paying down high-interest debt, building your emergency fund, or investing for long-term growth.Tune in to get a handle on the new rules and discover how optimizing your taxes in 2025 can help you achieve your bigger financial goals.

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