New Interest Deduction Encourages U.S. Vehicle Purchases Starting with vehicles purchased in 2025 , qualifying car buyers can claim a tax deduction of up to $10,000 per year  for interest paid on an auto loan used to purchase a new vehicle that was assembled in the United States . This deduction applies for tax years 2025 through 2028 , and — importantly — taxpayers don’t have to itemize deductions  to claim it. The provision is part of a broader legislative push to support d

Standard Deduction Increases for 2025 For the 2025 tax year, the standard deduction  amounts have risen to reflect inflation and recent tax law changes, reducing taxable income for most taxpayers and simplifying filing for those who do not itemize deductions. According to the IRS’s Revenue Procedure for 2025: Single filers:  $15,000 Married filing jointly:  $30,000 Head of household:  $22,500 These figures represent modest increases from 2024 and maintain historically high de

WASHINGTON, D.C. — In one of the most significant changes to federal tax administration in decades, the Internal Revenue Service (IRS) has officially phased out issuing paper tax refund checks to individual taxpayers — a shift that took effect September 30, 2025, and is now fully in place for the 2026 tax season. Under an executive order aimed at modernizing federal payments and reducing fraud, costs, and delays, the IRS now delivers all tax refunds electronically, primarily

WASHINGTON, D.C. — A new federal tax provision included in the One Big Beautiful Bill Act, signed into law in 2025, introduces a significant change for workers in traditionally tipped occupations by creating a new deduction for tip income. Under the No Tax on Tips provision, eligible workers can deduct up to $25,000 of qualified tips from their federal taxable income for tax years 2025 through 2028. The law is designed to reduce federal income tax burdens on workers who rely

WASHINGTON, D.C. — A major tax overhaul passed in 2025 has introduced a new federal tax benefit for overtime earnings, effective for tax years 2025 through 2028, bringing notable relief to many American workers. Under the One Big Beautiful Bill Act (Public Law 119-21), employees who earn overtime pay under the federal Fair Labor Standards Act (FLSA) can now deduct a portion of their overtime income from federal taxable income. This change effectively reduces the amount of fe

The Minnesota Department of Revenue announced updated individual income tax brackets, standard deduction amounts, and dependent exemption figures for tax year 2026, released on December 16, 2025. The 2026 income tax brackets reflect a 2.369% inflation adjustment from tax year 2025, a change required by law to prevent taxpayers from moving into higher tax brackets solely due to inflation. This adjustment affects income ranges only and does not change Minnesota’s tax rates, whi