Each tax season brings new forms, new rules, and new potential pitfalls. But in 2025, individuals and families face a particularly dynamic environment:
The stakes are high — but so are the opportunities for those who plan, prepare, and partner with a trusted CPA.
At Riley & Company CPA, we help individuals and families across Pennsylvania and beyond make sense of their tax situation — not just during filing season, but year-round. In this guide, we’ll walk through what’s new for 2025, common traps to avoid, and smart strategies to keep more of your income and reduce audit risk.
Let’s start with the landscape.
🧾 1. Standard Deduction Increased
For 2025, the IRS has again adjusted for inflation:
Tip: If you have itemized in the past, check again — rising thresholds mean some may now benefit more from the standard deduction.
💼 2. Child Tax Credit Remains — But May Phase Out
Planning insight: If you’re on the borderline, we may recommend timing income, retirement contributions, or bonuses to stay under the phaseout threshold.
💳 3. No More Above-the-Line Charitable Deduction
The temporary deduction for up to $300/$600 in cash donations (without itemizing) has expired. That means:
We offer clients a donation tracking worksheet to simplify recordkeeping.
🏥 4. Medical Deduction Threshold Still High
Only unreimbursed medical expenses exceeding 7.5% of AGI are deductible. Most taxpayers don’t qualify unless there was a major health event.
However, HSAs and FSAs remain powerful tools to reduce your taxable income — and we guide clients on how to fund and use them effectively.
💸 5. The IRS Is Sending More Notices Than Ever
With more funding, upgraded systems, and AI flagging tools, the IRS is issuing more:
The best defense? Accurate filing, full documentation, and working with a CPA who can represent you in case of audit.
Even well-organized individuals can make tax errors that cost money or trigger red flags. Here are a few we routinely catch and correct:
🚫 Mistake #1: Not Reporting Gig or Side Income
Many individuals forget to report:
With the $600 1099-K threshold now in effect, this income is visible to the IRS — and must be reported.
🚫 Mistake #2: Overclaiming Home Office or Mileage
These deductions are only available to self-employed individuals — not employees working remotely.
We help clients maintain compliant logs and calculate proper usage percentages.
🚫 Mistake #3: Not Using Tax-Advantaged Retirement Tools
Far too many families leave money on the table by failing to:
We provide custom contribution strategies tailored to each client’s income, life stage, and goals.
Tax planning is most powerful before December 31st — not after.
Here are key moves we help clients make throughout the year:
📅 1. Adjust Withholding or Estimated Taxes
We recalculate your Form W-4 or estimated payments to prevent overpayment or underpayment penalties.
💰 2. Harvest Capital Losses (or Gains)
If you have losing investments in a taxable brokerage account, consider:
🎓 3. Fund Education Tax Credits
If you or your dependents are pursuing higher education, you may qualify for:
But the IRS is strict about who pays and who claims — we ensure eligibility and compliance.
🧾 4. Donate Strategically
Don’t wait until December 31 to rush a check to charity.
We guide clients on:
Modern families are complex — so is your tax situation. We assist clients with:
👶 Young Families
🧓 Sandwich Generation
💼 Dual-Income Households
We go beyond just filing — we’re your partner in proactive financial health. Here’s how we help:
We also offer digital tools and secure portals so you can upload documents, track deductions, and ask questions anytime.
The most successful taxpayers in 2025 won’t be the ones rushing to gather receipts in March. They’ll be the ones who:
Adjust their plan mid-year
Ask smart questions early
Use every deduction legally available
Work with a CPA who knows them personally
You don’t need to predict the future. You just need to prepare for it.
With smart cash management, thoughtful tax strategy, and the right advisory partner, you can turn uncertainty into opportunity.
