Earlier this year, we sent you the Key Financial Data card to help you stay current on tax limits, retirement thresholds, and other important planning numbers. Normally, that card remains unchanged for the full year—but there is always the chance of mid-year legislation.
With the recent passage of the One Big Beautiful Bill (OBBB), several significant tax law changes are now in effect for the 2025 tax year. To help you stay informed, an updated version of the Key Financial Data card is available, reflecting these mid-year updates.
Here are a few key highlights you should be aware of:
1. Expanded Standard Deduction
Starting in 2025, the standard deduction increases to:
- $31,500 for joint filers
- $23,625 for head of household
- $15,750 for single filers
2. Enhanced Senior Deduction
In addition, individuals age 65 and older are now eligible for a new bonus deduction of $6,000 per person, potentially bringing a couple’s total deduction up to $46,700. This change could significantly reduce or even eliminate federal taxes on Social Security benefits for many retirees. The deduction phases out gradually for higher-income households.
3. Child Tax Credit Increased
The Child Tax Credit has been raised to $2,200 per child, with both the maximum and refundable amounts indexed for inflation moving forward. While not as expansive as previous temporary increases, this remains a valuable planning tool for families with dependents.
BNY Investments has an extensive array of products and solutions to help meet your financial goals.
Please don’t hesitate to contact us if you have any questions about your specific situation, or your portfolio.
Source: Horsesmouth 2025
This material has been provided for informational purposes only and should not be construed as investment advice or a recommendation of any particular investment product, strategy, investment manager or account arrangement, and should not serve as a primary basis for investment decisions. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.
This information is general in nature and is not intended to constitute tax advice. Please consult your own legal or tax advisor for more detailed information on tax issues and advice as they relate to your specific situation.
DRD-821214-2025-10-15