Major tax code changes include higher child tax credit, new deductions

JACKSON, Tenn. — While it is not officially tax season, now is a good time to go over all of your information to make sure the process is easier for you later on.

Millions of taxpayers will see changes when they file their 2025 taxes next year.

The child tax credit is increasing to $2,200 per child.

Seniors may qualify for additional deductions.

And other updates include deductions for tips and overtime.

“It is a year round event now,” said Mark Steber, Chief Tax Officer, Jackson Hewitt Tax Services. “The table stakes have never been higher. The money involved has never been higher. But you and your tax pro can get you the best result. But you need to start that right now while you still have a little bit of time.”

There are also deductions for car loans, as well as new reporting rules for income earned on third-party payment platforms.

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