Form 1099/1098
This form will be issued for digital asset transactions.
What is 1099-DA
100% Depreciation Effective Date
January 20, 2025.
Assets placed in service January 1-19, only receive 40% depreciation
Mortgage Interest Addition
What is Mortgage Insurance Premium deduction?
Maximum Deduction for Seniors
$6,000 (age 65+, subject to phaseout) Years 2025-2028. Both spouses can qualify if 65+
If Married must file MFJ to claim the deduction.
Income limits $75k (single/HOH), $150k (MFJ)
Phaseout $175k (single/HOH), $250k (MFJ)
Child Tax Credit 2025
What is $2200
Beginning January 2026 Form 1099-NEC will be required for thresholds above what amount
What is $2,000 (previously $600)
Salt Cap Increase
What is $40,000
Phaseout begins MAGI $500k (single & MFJ), $250k (MFS)
Mortgage Interest Cap
What is $375k (MFS)/$750k
Permanently extended, no reversion to $1M
Section 529 Plan Expansion
What is $10k qualified expenses to include K-12 and homeschooling expenses and postsecondary credentialing expenses. Effective after December 1, 2025
Maximum Additional Child Tax Credit 2025
What is $1400
This form will be issued for car interest received in 2025
What is 1098 - VLI
Qualifications for Overtime Deduction
What is $12,500/$25,000 (subject to phaseout), MAGI income limitations $150k (single, HOH), $300k (MFJ)
If married MUST file MFJ to claim deduction.
Pease Limitation
What is itemized deductions reduced by 2/37 (37% tax bracket) to 35% (35 cents on the dollar) total itemized deductions for high income taxpayers. Income approx $626k (single), $751k (MFJ)
Long Term Savings for Babies born in 2025
What is the Trump Account? Tax preferred account for individuals under 18. Moves to a traditional IRA at 18 years old.
Requires: valid SSN, US Citizen, parents open account by submitting form 4547 or using the portal opening approx Summer 2026. Can file for 4547 with 2025 tax return.
Individuals and employers can contribute up to $5k.
Government to contribute $1k to each account.
Child Dependent Care Credit Tiers
What is 35 - 50% Tier 1 (under $15k), 20 -35% Tier 2 (income max $75k/$150k)?
2026 Credit increases to $1500 one child, $3k for two or more.
1099K Threshold 2025 & 2026
What is $20,000 or greater and 200 transactions or greater
Income phaseout for tips deduction
Phaseout if MAGI exceeds: $150k (single/HOH), $300k (MFJ)
Up to $25,000 (subject to phaseout)
If married MUST file MFJ to claim deduction
Charitable Deduction Non-Itemizers
What is up to $1000 (single) and $2,000 (MFJ)
Cash donations only
In eligible - donor advised funds (DAF) or private foundations.
Applies to individuals 60-63 years old
What is "Super" Catch Up Contributions. Increased to $10k in 2025. Must be a Roth IRA.
2026 born before 1977 $11,250 catch up.
Adoption Credit Enhancement
What is $5000 refundable credit. Effective 2025, a portion of the nonrefundable credit will be refundable up to $5k.
Starting in January 2027 this system will replace the FIRE e-filing 1099 system.
What is IRIS
Maximum Auto Loan Interest Deduction
What is $10,000 annually (subject to phaseout), MAGI exceeds $100k (single, HOH), $200k (MFJ)
Used Vehicles do not qualify. Need VIN number to claim. Must be purchased after December 31,2024
Personal Use only.
Charitable Donation floor percentage
What is 0.5% floor? First 0.5% of contribution is nondeductible.
Example: AGI $200k, first $1k is not deductible.
High earners are capped at 35%.
2025 Contribution Limits
What is 401k $23.5k/$7.5 - 2026 $24.5k/$8k
What is IRA $7k/$1k - 2026 $7.5k/$1.1K
What is Simple IRA $16.5/$3.5 - 2026 $17k/$4k
Required to claim energy credit
What is Qualified Manufacturer (QM) code? Four-digit alphanumeric code for eligible item for each property claimed.
Credit stopped Sept 30, 2025. EV and energy credit.