Tax Changes 2025
What you need to know
In 2025, significant tax changes will be implemented that will affect businesses in the United States. It is essential for businesses to understand and prepare for these modifications to ensure regulatory compliance and optimize their tax burden. Below are the main tax changes that will come into effect this year:
1. Expiration of Key TCJA Provisions
The Tax Cuts and Jobs Act (TCJA) of 2017 introduced several temporary tax cuts that are scheduled to expire in 2025. This could result in tax increases for many businesses if appropriate measures are not taken.
Impact on Businesses:
The 20% deduction for pass-through businesses (QBI) could disappear, affecting LLCs, S-Corps, and sole proprietors.
The corporate tax rate of 21% could increase if Congress decides not to renew the tax cuts.
Various tax incentives for small businesses may be eliminated or reduced.
Recommendations:
Evaluate Tax Strategies: Consult with a Bilingual CPA from Jambrina CPA to identify opportunities to mitigate the impact of the expiration of these provisions.
Advance Planning: Accelerating income and delaying expenses could allow you to take advantage of current tax rates.
Explore Existing Tax Credits: There are incentives that could reduce the tax burden before the TCJA expires.
2. Inflation Adjustments in Tax Deductions
The IRS has announced inflation adjustments in various tax deductions for 2025. These changes aim to maintain the purchasing power of deductions and tax credits.
Expected Modifications:
Increase in the standard deduction for individual taxpayers and sole proprietorships.
Increase in contribution limits to 401(k) and IRA accounts.
Adjustments in income thresholds for tax credits such as the Earned Income Tax Credit (EITC).
Recommendations:
Update Tax Strategies: Review and adjust your tax strategies to make the most of available deductions and credits. With the help of our Bilingual CPA, you can have an optimal tax strategy.
Optimize Retirement Plan Contributions: Consider increasing contributions to retirement accounts to take advantage of the new tax-exempt limits.
3. Increase in the Earned Income Tax Credit (EITC)
For 2025, the Earned Income Tax Credit (EITC) will increase, providing significant tax relief to low- and middle-income families.
Impact on Businesses:
Employees with low incomes will be able to receive larger refunds on their tax returns.
Businesses may receive inquiries about payroll withholding adjustments due to these changes.
Recommendations:
Inform Employees: If your company has employees who may benefit from this credit, provide them with information and resources to take advantage of it effectively.
Accounting and Tax Compliance Advisory: At Jambrina CPA, we offer accounting, tax planning, and payroll services, ensuring that your company complies with IRS regulations and maximizes tax benefits for employees and employers.
4. Implementation of Tariffs on Imports from Mexico and Canada
As of March 4, 2025, the United States has imposed a 25% tariff on products from Mexico and Canada. These tariffs affect a wide range of products, which could directly impact businesses that rely on imports from these countries.
Affected Products:
Raw materials and electronic components.
Agricultural products and processed foods.
Recommendations:
Evaluate the Supply Chain: If your business relies on imports from Mexico or Canada, it is essential to analyze the impact of tariffs and consider strategies to mitigate additional costs.
Leverage Our Presence in Latin America: At Jambrina CPA, we have a team of international tax specialists with in-depth knowledge of tax regulations in Latin America and the United States. If your company operates in multiple countries, we offer specialized advice to optimize your tax strategy and minimize the impact of tariffs, ensuring compliance in all relevant jurisdictions.
5. Increase in IRS Audits
The IRS has intensified its audit efforts, focusing especially on small and medium-sized businesses. A more rigorous review of deductible expense documentation and withholding compliance is expected.
Areas of Greater Focus:
Excessive deductions in business expenses.
Errors in the classification of employees and independent contractors.
Undeclared income from digital platforms and cryptocurrencies.
Recommendations:
Maintain Detailed Records: Ensure your accounting is up to date and that all expenses are properly documented. With Jambrina CPA, have everything in order with experts in accounting and tax planning.
Conduct Internal Audits: Consider conducting periodic internal audits with our team of Bilingual CPAs to identify and correct potential inconsistencies before an official IRS review.
Tax changes in 2025 represent an opportunity to plan and maximize the financial efficiency of your business, but they can also present risks if not handled properly. The key to effectively navigating these changes is strategic tax planning and having experts in accounting, international taxes, payroll, and tax planning.
At Jambrina CPA, we understand the challenges businesses face and work hand in hand with you to develop personalized strategies that help you achieve tax benefits, comply with the IRS, and optimize your tax burden. Whether you need advice on international taxes, payroll, tax planning, or accounting, our team of Bilingual CPAs is ready to support you.
Need Help? Contact Us!
Don't let tax changes affect your company's profitability. Anticipate, optimize, and protect your financial future with the advice of Jambrina CPA.
Schedule a consultation with our specialists today. Let us help you strengthen your business's financial stability and make the most of available tax benefits.
📩 Contact us now and take your company's accounting to the next level with Jambrina CPA.