Tax Tip Tuesday #1 ’26:  What Changed in the 2025 Tax Law — And Who It Impacts Most

Jan 27, 2026

Why this matters:
Taxpayers who rely on last year’s filing strategy without reviewing current-year rules may overlook deductions, misclassify income, or miss opportunities to reduce taxable income.

Who is most affected?

• Individuals with itemized deductions
• Small business owners and self-employed filers
• High-income earners subject to phaseouts

The 2025 tax filing season reflects a meaningful shift in the U.S. tax landscape, as several federal tax provisions enacted in 2025 now apply to income earned during the year.

While many taxpayers assume tax laws only change dramatically every decade or so, incremental updates can still have a noticeable impact on refunds, balances due, and long-term planning.

One of the most significant developments is the continuation and formalization of several tax structures that were previously temporary or scheduled to expire. Individual tax brackets, the standard deduction framework, and certain business deductions now offer greater predictability. At the same time, new limitations and targeted benefits have been introduced, changing how some income and deductions are treated.

For individuals, the biggest changes tend to affect:

• Itemized deductions versus the standard deduction
• Certain types of earned income
• Higher-income filers subject to phaseouts

For businesses, the changes center around:

• Depreciation and expensing rules
• Pass-through income treatment
• Long-term planning certainty

Tax Tip: Before filing, review not just what changed — but whether you now fall into a different category of taxpayer than in prior years.