Navigate tax season with these resources for accountants: 2025 edition

As a tax and accounting professional, you know that each tax season brings new challenges and opportunities. For 2025, the field has shifted significantly due to the passage of the One Big Beautiful Bill Act (OBBBA) and the permanent extension of many Tax Cuts and Jobs Act (TCJA) provisions.

These changes will directly affect your planning strategies, client communications, and compliance processes. Staying ahead of these updates is essential for delivering value and maintaining your reputation as a trusted advisor.

Below, you’ll find a comprehensive overview of what’s new for individuals and businesses, along with actionable steps and resources to help you prepare for the season and guide your clients confidently.

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What’s new for individuals

This year, individual taxpayers face a host of changes that will impact their returns and planning strategies. As their advisor, it’s crucial to understand these updates so you can proactively identify opportunities and avoid pitfalls.

Permanent TCJA provisions

The OBBBA has made several TCJA reforms permanent, providing much-needed stability for tax planning. What does this look like?

• • Lower tax rates and expanded brackets are here to stay
  • The marriage penalty fix continues to benefit joint filers
  • The standard deduction has increased
  • The child tax credit is enhanced and indexed for inflation, with stricter eligibility requirements

These changes mean you’ll need to update your planning models and client communications to reflect the new landscape.

Expanded deductions and credits

Deductions for state and local taxes (SALT) are more generous and charitable giving rules have changed to allow more flexibility for both itemizers and non-itemizers. Here’s what else you need to know:

• • Medical expense deductions remain accessible
  • Seniors benefit from a temporary extra deduction
  • Personal exemptions remain eliminated, but mortgage interest rules are now permanent

These updates will affect your recommendations for itemizing versus taking the standard deduction and may open new opportunities for tax savings.

Temporary and new deductions

New deductions for tips, overtime, and car loan interest provide relief for working individuals, especially those in service industries.

The introduction of Trump Accounts for Children and expanded 529 college savings plan eligibility support families saving for education.

You’ll want to identify clients who can benefit from these new provisions and ensure they meet eligibility and reporting requirements.

Education & retirement

• • Education credits and student loan interest deductions now phase out at higher incomes, while 529 plans cover more expenses
  • Retirement savers benefit from increased contribution limits and new catch-up opportunities

These changes will impact your advice on education and retirement planning, especially for high-income clients.

Gift and estate tax

Higher annual and lifetime exclusions offer planning opportunities for wealth transfer. Review your clients’ estate plans to ensure they take advantage of these increased limits.

Disaster relief

The IRS now has expanded authority to postpone deadlines for state-declared disasters, providing greater flexibility for affected taxpayers. Stay alert for disaster declarations that may impact your clients’ filing deadlines.

What’s new for businesses 

Business clients will rely on you to interpret a wide range of new rules and opportunities. The 2025 updates affect everything from asset expensing to payroll reporting and require careful review of internal processes and client strategies.

Permanent and enhanced deductions

• • Businesses can now rely on permanent 100% bonus depreciation for qualified property, and Section 179 expensing limits have doubled
  • The Qualified Business Income (QBI) deduction is now permanent, with higher phase-in thresholds and a minimum deduction for active businesses

These changes will affect your recommendations for capital investments and entity selection.

Business interest limitation

The return to an EBITDA basis for interest deduction calculations benefits capital-intensive businesses, allowing for greater deductibility. Review your clients’ financing arrangements to maximize their interest deductions.

Reporting & compliance

• • Thresholds for 1099-MISC/NEC and 1099-K reporting have increased, reducing the reporting burden for smaller payments
  • Employer credits for family leave and childcare are now permanent
  • Tip credit expansion benefits more service businesses

Update your compliance checklists and educate clients on these new thresholds and credits.

Payroll & employee benefits

New deductions for tips and overtime will require updated payroll systems and reporting beginning in 2026.

• • The dependent care assistance exclusion is increased
  • Affordable Care Act (ACA)affordability percentages are updated for 2025 and 2026

Work with clients to ensure their payroll systems are ready for these changes.

Net operating losses (NOLs)

NOL rules now allow indefinite carryforward with an 80% taxable income limitation, though carrybacks are generally eliminated. Advise clients on how these changes affect their loss planning and tax projections.

Excess business loss limitation

This limitation is now permanent and indexed for inflation, affecting non-corporate taxpayers. Review your clients’ business structures and loss utilization strategies.

Energy & manufacturing

Clean energy credits are sunsetting faster, and new restrictions apply to foreign-influenced entities seeking U.S. tax credits. Advise clients on the timing of energy investments and eligibility for credits.

Other notable updates

Expanded QSBS exclusion and permanent changes to partnership/S corporation loss rules provide new planning opportunities.

E-filing systems are transitioning from FIRE to IRIS, requiring preparation.

Make sure your firm and your clients are ready for these operational changes.

How to prepare for the 2025 tax season 

With so many changes, preparation is key. Here are practical steps to help you and your clients stay compliant and maximize opportunities:

1. 1. Update your tax planning checklists
      • Revise your client checklists to reflect new deduction and credit opportunities, phaseouts, and compliance requirements.
      • Pay special attention to the expanded reporting thresholds and new payroll deduction rules.
   2. Communicate proactively with clients
      • Educate clients about changes to the standard deduction, child tax credit, SALT cap, and new opportunities for tips/overtime deductions.
      • For business clients, highlight the permanent bonus depreciation, Section 179 expensing, and QBI deduction changes.
   3. Review payroll systems and processes
      • Begin preparing for new reporting requirements associated with tips and overtime in 2026.
      • Ensure your payroll systems can capture the necessary data and occupation codes.
   4. Monitor energy credit expirations
      • Advise clients on the accelerated phaseouts for clean energy credits and plan investments accordingly.
   5. Stay current with e-filing platform changes
      • Transition planning for the move from FIRE to IRIS for information returns is essential for compliance.
   6. Leverage Thomson Reuters resources
      • Utilize comprehensive guides, webinars, and checklists from Thomson Reuters to stay ahead of legislative changes and optimize your workflow.

Tax season resources for accountants

Thomson Reuters offers a suite of resources designed specifically for tax and accounting professionals. These tools help you stay informed, streamline your workflow, and deliver exceptional service to your clients:

• • OBBBA Resource Hub: Everything you need to know regarding the latest updates and information on the OBBBA and its implications for tax and accounting professionals.
  • Modern Tax Firm Resource Hub: Find all of our resources on for modern tax firms to prepare for a smooth busy season.
  • Checkpoint Tools: Comprehensive year-end planning guides and compliance checklists.

The 2025 tax season brings both challenges and opportunities. By leveraging the latest resources and staying informed about legislative changes, you can provide strategic, informed advice and help your clients navigate the evolving tax landscape with confidence.

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