CHATTANOOGA, Tenn. (WDEF) – Millions of Americans will see significant changes when they file their 2025 tax returns.
The Child Tax Credit is increasing to $2,200 per child, providing more support for families. Seniors may also qualify for an additional deduction, offering extra relief for retirees.
In addition, the IRS is introducing new deductions for tips, overtime pay, and car loans, which could benefit workers and households with extra income or transportation expenses.
The agency is also tightening reporting rules for income earned through third-party payment platforms like Venmo and PayPal.
This means more digital transactions, including side gigs, freelance work, and gifts, could count as taxable income and must be reported on 2025 returns.
Tax experts recommend that households review their withholdings, organize financial records, and plan ahead to avoid surprises when filing next year.
Understanding these changes now can help families maximize deductions and stay compliant with the updated rules.
