New Tax Deductions Coming: What You Need to Know

The Big Beautiful Bill is set to bring some major tax changes starting with the 2025 tax year, and that means more money could be coming back to you at tax time. If you live in South Carolina or Georgia, it’s important to understand these updates now so you can prepare for next year’s filing season.

At Sunset Finance and Flight Finance, we’re here to help you stay ahead. Here’s a breakdown of the biggest changes that could impact your refund.

No Tax on Tips & Overtime

One of the most exciting changes is relief for hardworking individuals earning tips and overtime.

• Up to $25,000 in tip income will now be tax-exempt.
  
  
• Eligible overtime pay is also exempt, with caps in place for individuals and couples.

This means if you work in restaurants, hospitality, healthcare, or any job where overtime is common, you could see a much larger refund.

Expanded Deductions & Senior Relief

The standard deduction is increasing, which means bigger tax savings for all filers. Seniors get an extra deduction of up to $6,000, giving retirees more breathing room in their budgets.

Bigger Child Tax Credit

Families will benefit from an increase in the Child Tax Credit:

• The credit rises to $2,200 per child, with no changes to income brackets.
  
  
• A family of four could see a significant boost to their refund.

Blocking a Tax Hike for Median Income Families

The bill also prevents a pending $1,700 tax increase for middle-class households. Instead, families will see more immediate tax relief, helping with everyday expenses like food, gas, and utilities.

New Deduction for Car Loan Interest

One of the most unique additions is the ability to deduct interest on qualifying car loans (effective for loans originated after Dec. 31, 2024).

Here’s how it works:

• Deduct up to $10,000 per year in interest paid on a qualifying vehicle loan.
  
  
• Applies to new personal-use vehicles (not leases or used vehicles).
  
  
• Vehicle must undergo final assembly in the United States.
  
  
• Deduction phases out for incomes above $100,000 ($200,000 for joint filers).

Qualifying vehicles include cars, SUVs, vans, pickup trucks, and motorcycles under 14,000 pounds.

When Do These Tax Breaks Start?

These provisions are effective for the 2025 tax year (returns filed in 2026). But planning early ensures you can take advantage of every available benefit.

How Sunset Finance Can Help You Prepare

With so many changes, it’s easy to miss opportunities for bigger refunds. That’s where Sunset Finance and Flight Finance come in:

• We’ll help you understand which deductions apply to you.
  
  
• Our tax prep services ensure you don’t leave money on the table.
  
  
• Download the Taxes-To-Go App and securely upload your tax documents.
  
  
• If you need extra funds now, whether for holiday shopping or end-of-year expenses, our personal installment loans give you affordable, predictable payments.

Plan Ahead for a Bigger Refund

The Big Beautiful Bill brings plenty of new opportunities to save money and maximize your refund. Whether you earn tips, work overtime, have kids, or are planning to buy a new car, these changes can make a big difference in your finances.

Don’t wait until tax season sneaks up on you. Contact your local Sunset Finance or Flight Finance office in South Carolina or Georgia today to get personalized help with your tax preparation.

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