Are You a Deed Holder Getting Ready to File Your 2025 Tax Return? Here’s What to Know

Hello, U.S. homeowners! It’s time to render unto Caesar again.

Without further ado, let’s just dive into the most common questions for filing for the 2025 tax year.

When is my 2025 tax return due?

For 2025 returns due this tax season, file or request an extension by April 15, 2026. For all of the details, see the IRS page about due dates.

If I don’t itemize, what is my standard deduction?

Filing single? Your standard deduction for 2025 is $15,750. Couples filing jointly get a standard deduction of $31,500. Filing as head of household? The standard deduction is $23,625.

Don’t miss the extra standard deduction for people over 65.

Have the available deductions changed?

Not much. Last year, a Republican tax and spending law was enacted so you’ll see a few changes. Still, most filers take the standard deduction.

What deductions can homeowners take?

The main one to know about is the mortgage interest deduction. To claim it, you must itemize deductions. Items to deduct can also include state and local taxes and gifts to charity. If the combined total of your 2025 mortgage interest, state and local taxes, and donations exceeds the standard deduction, then it makes sense to itemize.

What if I have a home office?

Home office expenses are deductible if the space is for your business only. If you’re self-employed or freelancing and you work out of a home office, you can deduct eligible expenses concerning your business. If you receive a W-2 from an employer, your expenses do not count as a home office for deduction purposes.

What if I borrowed against equity? Is the interest deductible?

You can deduct interest from your home equity loan or line of credit if the loan was used for qualifying home improvements. Not for other expenditures.

What about upgrades I made to the home to make it more accessible?

Were they medically necessary? Health care equipment and necessary modifications to your home (such as bathroom installations and entranceway ramps) are deductible expenses if you can’t do without them.

I’ve heard something about a SALT deduction for state and local taxes. What is that?

There’s been an increase in allowable deductions for property taxes and state or local income taxes or sales taxes: up to $40,000 per filer. But if you have a modest mortgage, you might be better off with the standard deduction. In short, the wealthy win the most.

Can I still claim tax credits for clean energy home improvements?

If you insulated your home or bought a solar energy system, and actually completed the upgrades by Dec. 31, 2025, then yes, you can. Completing the upgrades in 2026? That rules out the available credit.

I’m selling items through a third‑party payment platform. What does the IRS need to know?

In 2025, the federal government no longer makes you report if you did at least $600 worth of selling in the year. Breathe a sigh of relief, as we return to the earlier standard. You’ll get a 1099-K from the online company only if you hit the $20K mark in gross payments, from more than 200 transactions throughout the tax year. The IRS can check your payment platform’s statement against earnings you report on your tax return.

What if I get a 1099-K but I grossed less than $20K or actually took a loss?

Tax filers who rely on platforms or apps for their small businesses may get a 1099‑K form. It could represent non‑taxable payments or losses as well as profitable sales. Keep your records. If the IRS ever does question your return (possible yet highly unlikely because the IRS carries out very few audits in relation to the number of filings received), it’ll be easier to resolve questions if you’re a careful record-keeper.

Do breaks for tips and overtime have any impact for home office workers?

The breaks for tip earners do impact some self-employed people who work from home offices. There are new deductions of up to $25,000 of qualified tip income, depending on occupation and total income. Digital creators earning money that’s crowdfunded from platforms may be eligible. Platforms may send out notices telling the earners how much of their income counts as tips. Contact the platform if you’re a digital creator who may be able to benefit, as the breaks can be substantial. Claiming the deduction requires Schedule 1 and Schedule 1‑A in addition to the usual 1040 and Schedule C.

Are there other breaks for small business owners?

“Full expensing” lets a business owner deduct the total cost of investing in new or improved equipment, tech, or even buildings. This can boost your deduction for business equipment. For the 2025 tax year, full expensing is back for qualified business equipment put into operation after January 19, 2025. (So, the date of purchase is not the relevant date.)

Are there other tax rules for 2025 worth noting?

There are a few that apply to specific situations:

• For tax years 2025 through 2028, seniors aged 65+ can take the senior bonus—a special $6,000 deduction in addition to their other deductions. Once your modified adjusted gross income tops $75,000 per person, the amount of the bonus gets lower. Note that this tax break does not apply to couples if they file separately, but joint filers do get the 2X bonus. The break can take a good chunk out of a senior’s taxable income, so it’s important to take it. If you use a tax program, it should claim the break for you automatically, based on your birthday.

• For tax years 2025 through 2028, there’s an interest deduction if you have a car loan. The loan must be secured by a lien on the car, and issued to you on or after the first day of January 2025. Filers can deduct up to $10,000 of interest they paid on U.S. manufactured cars. The car must be purchased for personal use. There’s no need to itemize in order to reap the benefit, as it’s applied as a reduction of income.  

• People with children get a little more ($200 more) back in the federal child tax credit for 2025. Filers of 2025 returns receive a break up to $2,200 per child 16 and younger. As with most tax breaks, it’s subject to income caps. Lower‑income households may claim an extra child tax credit.

Hurry Up and Wait

The Internal Revenue Service is still dealing with staffing and funding cuts. Expect longer processing times and slower taxpayer service responses.

The Service suggests filing in advance of the deadline if possible. Filing online using tax software is common now. Online filing gets faster processing and refunds.

Finally, look out for fake letters from the IRS. Scammers keep upping their game. So, resist clicking a link or QR code. It’s best to initiate contact yourself.