Important Tax Updates

Changes for your 2023 Tax Returns & Beyond

The SECURE 2.0 Act was signed into law on 12/29/22. It includes a number of changes that could help strengthen the retirement system:


  • The age to start taking RMDs increases to age 73 in 2023 and to 75 in 2033.
  • The penalty for failing to take an RMD will decrease to 25% of the RMD amount, from 50% currently, and 10% if corrected in a timely manner for IRAs.
  • Starting in 2024, RMDs will no longer be required from Roth accounts in employer retirement plans.
  • Catch-up contributions for those who are 50+ will increase in 2025 for 401k, 403b, governmental plans, and IRA account holders.
  • Defined contribution retirement plans will be able to add an emergency savings account associated with a Roth account.


Also, more people may receive Form 1099-K (Payment Card and Third Party Network Transactions) for 2025, showing credit card payments received during the 2024 because the thresholds for reporting those transactions have been lowered.


In Georgia, HB 1437 was signed into law with the following changes to GA Income Taxes as of 1/1/2024:

The personal exemption for married individuals filing a joint return increases to $18,500 in 2024 and gradually increases to $24,000 according to the following schedule (married filing separately are allowed 1/2 the following amounts):

  • 2024: $18,500.00
  • 2026: $20,000.00
  • 2028: $22,000.00
  • 2030: $24,000.00

The law will still allow for itemized deductions for those who itemize federally but the standard deduction has been eliminated.



The tax rate phases down from 5.49% in tax year 2024 to 4.99% in tax year 2029 according to the following schedule:


  •  2024: 5.49
  •  2025: 5.39
  •  2026: 5.29
  •  2027: 5.19
  •  2028: 5.09
  •  2029: 4.99


The retirement exemption for individuals 65+. Currently, individuals 65+ are permitted to recharacterize up to $4,000 of earned income as retirement income for the purpose of calculating the $65,000 retirement income exclusion. For taxable years beginning on and after January 1, 2024, this amount increases to $5,000.


Finally, the bill limits the SALT itemized deduction to the same limitations as the Federal SALT deduction ($10k all but MFS / $5k for MFS).


Tax Time | Cumming, GA | Keystone Accounting Inc

Important Tax Updates

On July 4, 2025, HR 1 / Public Law 119-21 (aka “One Big Beautiful Bill” or “OBBB”) was signed into law. Some of its sections simply make permanent certain changes that were made with the 2017 Tax Cuts and Jobs Act (“TCJA”) and set to expire at the end of 2025. Others expand upon it or introduce new changes, some of which are temporary. Here are the more common tax items: 


Individual Tax Provisions:

TCJA Changes Made Permanent:

·      Post 2017 Lowered Income Tax Brackets made permanent

·      Substantially Increased Standard Deduction over Pre-TCJA

·      Suspension of Personal Exemptions made permanent

·      Mortgage Interest itemized deduction allowed for qualified residential loans up to $750k (down from $1m)

·      2% Misc Itemized Deductions permanently disallowed

·      Casualty & Theft Losses permanently disallowed except for federally declared disaster areas


TCJA Changes Modified:

·      State & Local Taxes (“SALT”) itemized deduction cap increased to $40k from $10k through 12/31/2029, after which it reverts to the TCJA cap of $10k

·      Return & expansion of the above-the-line Cash Donations Deduction ($1000 for single, $2000 for MFJ) for those using Standard Deduction, starting 1/1/2026

·      Permanently increases the child tax credit to $2,200, which adjusts with inflation

·      Child and Dependent Care Credit increased from 35% to 50% of qualifying expenses

 

New Changes:

·      Itemized Charitable Deductions are now subject to a floor of .5% of taxpayer's Adjusted Gross Income (AGI)

·      Mortgage Insurance Premiums will be treated a Mortgage Interest

·      Above-the-Line exemption for Tip Income up to $25k received as an employee in occupations where tipping is customary (phaseout beginning at $150k modified AGI for single, $300k MFJ), for years 2025 through 2028

·      Likewise, another Above-the-Line exemption for Overtime Pay, up to $12,500 per taxpayer (phaseout begins at $150k MAGI single, $300k MFJ), for years 2025-2028

·      For 2025–2028, deduction up to $10k per year of Auto Loan Interest on new, US-assembled, personal-use vehicles under 14,000 lbs (phaseout begins at $100k MAGI for single, $200k MFJ)

·      Individuals aged 65+ will receive an additional $6,000 above-the-line deduction (Phaseout begins at $75k MAGI for singles, $150k MFJ) to indirectly offset tax on Social Security income

·      Elimination of tax credits for electric vehicles, residential & commercial energy efficiency & other clean energy tax incentives




Tax Time | Cumming, GA | Keystone Accounting Inc

Select Business Tax Provisions in OBBB:

·   20% Section 199a deduction made permanent for qualified pass-through business income

·   100% bonus depreciation permanently reinstated for qualified property

·   R&D Deduction is retroactively restored back to 2022

·   1099-NEC requirement threshold increased from $600 to $2000


In Georgia: 

HB 1437 was signed into law with the following changes to GA Income Taxes as of 1/1/2024 (for tax returns filed in 2025):

  • Personal exemptions have been repealed except for the $3000 dependent exemption.
  • The standard deduction for married individuals filing a joint return increases to $24,000 in 2024 (others are $12,000). However, Georgia law will still allow for itemized deductions for those who itemize federally.


The Georgia tax rate phases down from 5.39% in tax year 2024 to 4.99% in tax year 2027 and remaining until 2030, according to the following schedule:


  •  2024: 5.39
  •  2025: 5.19
  •  2026: 5.09
  •  2027 - 2030: 4.99





Have questions? Call us at 770-886-4424 to learn more.