The tax landscape is constantly evolving, and 2025 is no exception. From federal adjustments to deductions and credits to localized considerations that impact Rockwall-area taxpayers, staying informed is critical. Whether you’re filing as an individual in Heath or managing a small business in Royse City, understanding the latest tax changes helps you make smarter financial decisions—and avoid costly mistakes.
At Brozewicz CPA, we keep our clients ahead of the curve. Here’s a breakdown of the most important tax law updates you need to know for 2025, and how they might affect your next return.
1. Standard Deduction Increases
For the 2025 tax year, the IRS has adjusted the standard deduction once again to account for inflation. The new figures are:
- $14,000 for single filers (up from $13,850)
- $28,000 for married couples filing jointly (up from $27,700)
- $20,800 for heads of household (up from $20,800)
These increases may make itemizing less advantageous for some taxpayers. However, a CPA can analyze your specific financials to determine the best filing approach.
2. Retirement Contribution Limits Have Risen
If you’re contributing to a 401(k), IRA, or SEP IRA, good news: the contribution limits have increased for 2025. You can now contribute:
- Up to $23,000 in a 401(k), with an additional $7,500 catch-up for those 50+
- Up to $7,500 in a traditional or Roth IRA, with a $1,000 catch-up for 50+
This is a prime opportunity to reduce your taxable income while saving for the future—especially if you own a small business in Rockwall or Rowlett and use a solo 401(k) or SEP plan.
Learn more about how we help individuals and business owners optimize retirement tax strategies.
3. Child Tax Credit Adjustments
The Child Tax Credit remains in place but with key adjustments:
- The maximum credit per qualifying child under age 17 is now $2,200
- The refundable portion has increased, offering more benefits to lower-income families
- Phase-out thresholds remain the same, starting at $200,000 for single filers and $400,000 for married couples
These changes may impact your eligibility and refund size, especially for families in Heath and Fate with multiple dependents.
4. Energy Efficiency Credits Expanded
If you made home improvements or plan to do so, 2025 brings expanded energy credits:
- Up to 30% credit for qualifying HVAC, windows, insulation, and energy audits
- A maximum annual benefit of $1,200 per household
- Separate limits for heat pumps and biomass stoves
Rockwall-area homeowners can benefit from this credit while improving energy efficiency. Be sure to keep all documentation and work with a CPA to claim it accurately.
Check this out for more tips on credits and deductions that can lower your 2025 tax bill.
5. Business Owners Face New Reporting Requirements
If you operate a small business or LLC in Royse City or Rockwall, new federal transparency rules may apply to you in 2025. Under the Corporate Transparency Act (CTA), certain small businesses must report ownership details to FinCEN. This is separate from IRS filings but equally important.
Additionally, mileage deduction rates have increased slightly, now set at:
- 67 cents per mile for business use
- 21 cents per mile for medical or moving
- 14 cents per mile for charitable driving
Working with a CPA ensures these changes are reflected properly in your bookkeeping and year-end filings.
6. Tax Bracket Shifts
The federal tax brackets have widened slightly due to inflation adjustments. This means you may be able to earn more while staying in the same bracket. Key marginal tax rates (10%, 12%, 22%, 24%, etc.) remain unchanged, but the income thresholds have increased.
For example:
- The 22% bracket now applies to incomes up to $110,000 for single filers (up from $102,750)
- For married couples, the 24% bracket kicks in above $197,000
A CPA can help you assess if it’s time to adjust your withholding or make estimated tax payments to stay compliant.
Why Work With a CPA in Rockwall?
Federal updates are just one part of the equation. Local property tax trends, Texas-specific deductions, and regional housing costs all affect your financial outcome. A Rockwall-based CPA understands these local layers and ensures you don’t miss out on opportunities that national tax services overlook. This is another great reason.
A Local Case Study: Planning Around the Changes
A small business owner in Fate contacted us after hearing about the new reporting rules and standard deduction changes. We:
- Adjusted their 2025 estimated tax payments
- Helped them upgrade office HVAC to claim the new energy credit
- Updated their payroll system to reflect retirement contribution increases
These proactive steps saved the client thousands and eliminated potential filing errors.
Stay Ahead of Tax Changes with Brozewicz CPA
At Brozewicz CPA, we make it our mission to translate complex tax law into practical action. From retirement planning to energy credits, we ensure Rockwall residents and business owners are never caught off guard.
