Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: Will the Standard Deduction Change This Year? #ProfitablePainter

Name: Painting Business Owners: Will the Standard Deduction Change This Year? #ProfitablePainter
Uploaded: 2025-02-07T14:15:05+00:00
Duration: 52 s
Channel: Daniel Honan
Description: In this segment, the presenter explains the recent changes to the U.S. federal standard deduction introduced by the Tax Cuts and Jobs Act, noting that…

7 Feb 2025 · 1 min

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In this segment, the presenter explains the recent changes to the U.S. federal standard deduction introduced by the Tax Cuts and Jobs Act, noting that the deduction amounts have roughly doubled. Current figures are cited as about $29,200 for married couples filing jointly and $14,600 for single filers. The speaker highlights that these amounts are expected to rise in 2025 due to inflation indexing. The discussion emphasizes that a larger standard deduction reduces taxable income for most taxpayers, which is generally beneficial, though the impact may differ for those who itemize deductions. The overall message is that the rising standard deduction acts like a “rising tide” that helps more people, including painting business owners, lower their tax burden.

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Another thing we're looking forward to is the standard deduction for individuals and married couples. I think one of the most noticeable parts of the Tax Cuts and Jobs Act was the doubling of the standard deduction. And we are expecting that to continue. In fact, we are looking at right now, the standard deduction is about $29,200 for a married couple, $14,600 for a single, and we're expecting it to increase in 2025 as that gets adjusted for inflation. That's important because larger your standard deduction is, the less you have to pay in taxes. If you're itemizing, you might have a little bit different opinion on that, but generally speaking, a larger standard deduction does improve things for more people. Kind of the idea of like a rising tide floats all ships.