What’s Changing This Year and How to Plan Ahead

Introduction

Each year brings a wave of updates from the IRS, but this year is different, thanks to the wide range of changes introduced by the One Big Beautiful Bill Act.
With new thresholds, deduction limits, mileage rates, and compliance rules, these updates can significantly affect both personal and business finances. Below, we walk through all the key changes coming with this new bill. In future articles, we’ll dive deeper into each topic and explain what it could mean for you.

At Kind Business Services, we help individuals and small businesses across Chicago stay ahead of tax changes through proactive planning and automation.
Here’s your clear breakdown of what’s new for tax year 2025, what it means for you, and how to prepare before filing season.

Individual Tax Highlights for 2025

1. Standard Deduction Increases
   • Single: $15,150 (up from $14,600)
   • Married Filing Jointly: $30,300 (up from $29,200)
   • Head of Household: $22,600
2. Marginal Tax Brackets Adjusted
   Each bracket shifts upward about 5% due to inflation.
3. Retirement Contribution Limits Rise
   401(k): $23,500 | IRA: $7,500 | Catch-up: $1,000
4. Child Tax Credit & Dependent Rules
   The maximum credit remains $2,000, but thresholds rise slightly.

Business Tax Highlights

1. Bonus Depreciation Phase-Down Continues — 40% for 2025 (down from 60% in 2024).
2. Section 179 Expensing Limit Rises — $1.25 million limit, phase-out begins at $3.1 million.
3. Corporate Tax Rate — Flat 21%, with possible legislative discussion in future years.
4. Mileage Rates — Business: 67¢ | Charitable: 14¢ | Medical/Moving: 21¢

These changes can all affect your annual tax preparation, whether you’re filing individually or managing a business.

How AI Is Modernizing Tax Preparation

AI and automation tools are transforming how small businesses handle compliance:

• Smart categorization: Automatically classifies transactions into the correct expense categories.
• Predictive tax estimates: Systems like QuickBooks + AI forecasting can estimate quarterly payments.
• Document recognition: Scans and stores receipts, invoices, and 1099s automatically.
• Audit readiness: AI compares historical filings to detect anomalies before the IRS does.

At Kind Business Services, we integrate these tools into client workflows to minimize surprises and keep your financial data audit-ready.

Key Deadlines for 2025 Tax Compliance

(Starting in January 2026)

• Jan 31: W-2 & 1099 issuance
• Mar 15: Partnership & S-Corp filings
• Apr 15: Individual & C-Corp filings
• Jun 15 / Sep 15 / Jan 15 (2026): Estimated tax payments

What You Should Do Now

1. Review your 2024 income and expenses early.
2. Maximize retirement contributions.
3. Organize your documentation with digital tools.
4. Schedule a tax planning meeting before year-end.

Stay Tuned or Contact Us Today

If you’re unsure how these 2025 changes will affect your return, our team can help.
Check our website weekly for additional blogs breaking down these updates further.

✅ Schedule a 30-minute consultation
✅ Sign up for our Tax Estimate Service to stay compliant and avoid penalties.

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