Tax Law Highlights TY25

Tax-Aide Scope Changes

TBD

Virginia TY25 Updates

Standard Deduction -

S/MFS:  $8,750 MFJ:  $17,500

Virginia rebate up to tax liability (max $200 per taxpayer) for returns filed by Nov. 3, 2025 - may be taxable if itemized in TY2024 and benefited

Refundable EITC increased to 20% of federal EITC

Estimated tax payment threshold increased to $1,000

Expired: Eligible Educator Expense Deduction

Federal TY25 Updates (IRS List)

TBD

Federal Standard Deduction

S or MFS:  $ MFJ or QSS:  $ HoH:  $

Additional for Age (65+) or Blindness

Married/QSS: $ S/HOH:  $

Gross income limit for qualifying relative $5,200

Expenses

Standard mileage rates:  

$0.70 business; $0.21 medical; $0.14 charitable

HSA contribution $4,300 (self) and $8,550 (family) with 55+ $1,000

Tax Credits

Earned Income Tax Credit: Maximum investment income $11,950

Policy and Procedures Update

Para 4.6.3 Taxpayer should initial bank account information found on Form 1040 (refund only) or Client Form Listing Summary page in QR print set.

Tax Law Highlights TY24

Tax-Aide Scope Changes 

Schedule 1 line 8m, Olympic and Paralympic medals and USOC prize money

Schedule 1 line 24c, Nontaxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8m. If AGI is not more than $1,000,000 ($500,000 MFS), a corresponding adjustment to remove the income is made here. 

Schedule C expenses allowed increased from $35,000 to $50,000 (announced 1/24/25). 

Virginia TY24 Updates

Standard Deduction - 

S/MFS:  $8,500 MFJ:  $17,000

Military retiree benefits subtraction (code 60) up to $30,000 regardless of age

Form 1099-K VA state threshold $600 regardless of transaction volume

Federal TY24 Updates (IRS list)

New Intake/Interview Booklet - Draft IRS Form 13614-C, Intake/Interview and Quality Review Sheet

Form 1099-R box 7 code G for employer contribution to Roth with box 2a taxable amount

Form 1040 - Due by April 15, 2025

Federal Standard Deduction

S or MFS:  $14,600 MFJ or QSS:  $29,200 HoH:  $21,900

Additional for Age (65+) or Blindness

Married/QSS: $1,550 S/HOH:  $1,950 for each

Gross income limit for qualifying relative $5,050

Adjustments

HSA individual contribution limit $4,150. Family limit $8,300.

Income

Form 1099-K from third-party settlement networks (e.g., PayPal, VISA, Mastercard, Venmo) if paid over $5,000 for goods and services regardless of transaction volume

Social Security annual wage base $168,600

Pension

 May withdraw $1,000 for emergencies without penalty - income tax still due. 

IRA maximum contribution $7,000 plus $1,000 for 50 and older.

Expenses

Standard mileage rates:

$0.67 business; $0.21 medical; $0.14 charitable 

Tax Credits

Earned Income Tax Credit: Maximum investment income $11,600.