Tax Information

Providing you with the most up-to-date tax information.

Establishing an Account

A Trump Account may be established for a child who is under age 18 at the end of the tax year in which the election is made, provided all other eligibility requirements are met.
If the child was born after December 31, 2024, and before January 1, 2029, the authorized individual may also elect to receive the $1,000 pilot program contribution, if the child otherwise qualifies.
Children born before January 1, 2025, are not eligible for the pilot program contribution but may still have a Trump Account established if they are under age 18.

Contributions

For each child with an established Trump Account, total annual contributions are generally limited to $5,000 per year, subject to IRS rules.
Certain contributions, such as the $1,000 pilot program contribution, qualified general contributions, and rollovers, are not counted toward the annual contribution limit.
Employer contributions under section 128 are subject to a separate annual limitation.
Contributions cannot be made before July 4, 2026.

Use of Funds

During the growth period (generally before January 1 of the year the child turns 18), distributions from a Trump Account are restricted and are permitted only for specific reasons (such as rollovers, excess contributions, or upon death of the beneficiary).
Beginning January 1 of the year the child turns 18, the Trump Account is treated similarly to a traditional IRA.
Distributions made after this point may be subject to the 10% additional tax on early distributions, unless an exception applies (such as qualified higher education expenses or first-time home purchase). Restrictions apply.

Qualified Child

An authorized individual can make an election for a $1,000 pilot program contribution to be made to a Trump account for a child, who meets all of the following requirements:

Is anticipated to be the qualifying child of the authorized individual for the year in which the election is made
Is born after December 31, 2024, and before January 1, 2029
Has not had a prior pilot program contribution election made for them
Is a U.S. citizen
Has an SSN

Overview

Notice 2025-69 provides guidance for taxpayers who are eligible for the federal income tax deduction for qualified tips (the "no tax on tips" provision discussed in section 70201 of the new tax bill). For 2025, employers and payors are not required to separately report or account for qualified tips on the Form W-2, 1099-NEC, 1099-MISC, or 1099-K that is provided (however, employers/payors may provide this information in a statement).

Qualified tips must:

be cash or charged tips received in an occupation that customarily and regularly received tips before 12/31/2024.
- See the proposed rule document that discusses occupations that customarily and regularly received tips.
be voluntary, not negotiated or required in advance, and determined by the payor.
- Mandatory service charges or automatic gratuities added by a business do not qualify.
not be received in the course of a trade or business that is a specified service trade or business (SSTB).

The deduction:

is up to $25,000 (per return).
can be claimed by both itemizing and non-itemizing taxpayers.
is not available for taxpayers who file Married Filing Separately (MFS).
is subject to a MAGI phase-out starting at $150,000 ($300,000 MFJ).

For more information, see the IRS Info page.

Enhanced Deduction for Seniors

Eligible taxpayers may now qualify for an Enhanced Deduction for Seniors. This deduction was enacted as part of the new tax.

This deduction can be taken by both itemizing and non-itemizing taxpayers.
The Enhanced Deduction for Seniors is in addition to the standard age/blindness deduction.
The senior deduction can be taken by eligible seniors for tax years 2025 through 2028, unless extended by future legislation.

Amounts

The amount is up to $6,000 for a qualifying individual.
The deduction amount is up to $12,000 for a married couple, if both spouses qualify.
The deduction starts to phase out for taxpayers with a Modified Adjusted Gross Income (MAGI) over $75,000 for single filers or $150,000 for married filing jointly.

Requirements

If married, taxpayers must file MFJ to take this deduction. Taxpayers who choose to file Married Filing Separately are not eligible to take the deduction, even if otherwise qualified.
The taxpayer must be age 65 or older by the end of the tax year.
- Each spouse must independently meet the age requirement to qualify for their portion of the deduction.
The Social Security Number of the qualifying individuals must be included on the return.

No Tax on Car Loan Interest

Certain taxpayers can now deduct up to $10,000 of qualifying vehicle loan interest (the "no tax on car loan interest" provision discussed in section 70203 of the new tax bill). Both itemizing and non-itemizing taxpayers can take this deduction. Taxpayers who are filing MFS cannot take this deduction.

A qualified passenger vehicle must meet these qualifications:

Vehicle has to be a new passenger vehicle purchased for personal use.
Vehicle must have had its final assembly in the United States.
- Use https://vpic.nhtsa.dot.gov/decoder/ to confirm the final assembly location.
Vehicle must have a gross vehicle weight rating (GVWR) under 14,000 lbs. Vehicle must be purchased with a loan (not a lease).
Loan must originate after December 31, 2024.

Available entries are as follows:

TS - Select if the vehicle belongs to the taxpayer or spouse.
Loan origination date - Enter the date the loan was originated. To qualify, the loan must have been originated after December 31, 2024, by the taxpayer, used to purchase an eligible passenger vehicle for personal use, and secured by a first lien on the vehicle.
Outstanding principal - Enter the amount of outstanding principal on the loan as of January 1, 2025 or the date of origination, whichever is later.
Year - Enter the year of the vehicle.
Make - Enter the make of the vehicle.
Model - Enter the model of the vehicle.
Vehicle identification number (VIN) - Enter the vehicle identification number (VIN) of the vehicle.
Business interest - Enter the portion of interest that will be deducted as a business deduction on a different form, such as Schedule C (Form 1040), Schedule E (Form 1040), or Schedule F (Form 1040).
Personal interest - Enter the portion of interest that will be applied to Schedule 1-A (Form 1040).

The deduction is subject to phase out when the MAGI is over $100,000 single or head of household, or $200,000 married filing jointly. Taxpayers who are filing MFS cannot take this deduction.

No Tax on Overtime

Notice 2025-69 provides guidance for taxpayers who are eligible for the federal income tax deduction for qualified overtime compensation (the "no tax on overtime" provision of the new tax bill). For 2025, employers are not required to separately report or account for qualified overtime compensation on the Form W-2 that is provided to an employee (however, employers may provide this information in a statement, or use Form W-2, Box 14 to provide details).

Note Qualified overtime compensation is the portion of overtime compensation paid to an individual as required under section 7 of the Fair Labor Standards Act (FLSA) that is in excess of the regular rate at which the individual is employed. In other words, the FLSA premium portion of overtime (generally the “half” in time-and-a-half), not the entire overtime payment. State or union overtime rules do not apply for this deduction.

See 29 U.S. Code §§ 201-219 and 29 U.S. Code § 207 for details.