What Georgia Taxpayers Need to Know This Filing Season

Tax season is officially underway for returns covering the 2025 tax year, with federal and Georgia returns due April 15, 2026. There are a handful of new deductions and tax law updates that could meaningfully affect your refund or tax bill. Let’s break them down and make sure you don’t miss anything important.

Bigger Standard Deductions

Thanks to inflation adjustments and a temporary boost, standard deductions are up across the board:

• $15,750 for single filers

• $31,500 for married couples filing jointly

• $23,625 for heads of household

These higher thresholds reduce taxable income for many families and individuals, often meaning a bigger refund or lower tax owed. The familiar seven federal tax brackets remain in place, giving you predictability as you plan your return.

Child Tax Credit Changes

If you’re claiming the Child Tax Credit this year, there’s good news and a twist: the credit amount increased to $2,200 per qualifying child. However, tightened eligibility rules now require Social Security Numbers for both spouses and the children claiming the credit. Estimates suggest this could make about one million children ineligible.

New Breaks for Older Taxpayers

Taxpayers age 65 and older now qualify for a new deduction worth $6,000 — or $12,000 for married couples filing jointly if both spouses are eligible. This extra cushion phases out for higher earners but can be a significant advantage for many retirees.

Auto Loan Interest Deduction

If you bought a new, U.S.-assembled car and took out a loan, you may be able to deduct up to $10,000 in interest paid. This “above-the-line” deduction reduces your adjusted gross income without needing to itemize.

Deductions for Tips and Overtime

For tax year 2025 and continuing through 2028, eligible workers can take a deduction for qualified tips and overtime pay. This applies whether you itemize or take the standard deduction, and can be especially helpful for people in service jobs who report tips on their W-2.

Expanded SALT Deduction

The federal deduction for state and local taxes (SALT) — including Georgia income taxes, property taxes and personal property taxes — saw its cap temporarily increase to $40,000 for most filers. That’s up from the longtime limit of $10,000. This is a temporary provision scheduled to phase back down after 2029.

Don’t Overlook Valuable Tax Credits

Many taxpayers miss out on credits that reduce tax liability dollar-for-dollar. Two big examples are:

• The Earned Income Tax Credit, which can be a significant refund for working individuals and families below certain income thresholds

• The Retirement Saver’s Credit, for eligible contributors to retirement accounts

Other credits like the enhanced adoption credit or energy-related credits may still apply depending on the year a purchase or expense qualified.

What This Means for You

These changes create real opportunities to lower your tax bill or increase your refund. Whether you’re a retiree benefiting from the new age-based deduction, a family navigating updated credits, or a worker earning tips or overtime, the details matter.

Filing early and working with a professional can make a meaningful difference.

If you want expert guidance, I highly recommend Cambridge CPA’s 👉 cambreancpa.com

Or, of course, your preferred tax accounting specialist.

As always, if taxes, timing, or bigger life decisions connect back to your housing plans, I’m here to help you think through the full picture. No pressure. Just good strategy and honest advice.