2025 Tax Updates and Documents

Shurson Group is excited to continue to work with and advise you regarding your 2025 income tax! Linked below is the annual Individual Income Tax Questionnaire, highlighting important items we will need this tax season.

Please take a moment to go through the list to make sure you have collected all of the required documents. We require you to download and complete the Questionnaire before we can begin your return. (Clicking either button will immediately trigger a download of the respective file.)

Also included is a Client Engagement Letter. Please download and review, sign, and return to us when you submit your tax documents for the 2025 season. We require all parties to sign the Letter before we can begin your return.

Note: Separately filed Business returns (S-Corps & Partnerships) and Estates & Trusts, we will send you your Engagement Letters directly.

Individual Income Tax Questionnaire (download, complete, and return required)
Client Engagement Letter (download, sign, and return required)

The One Big Beautiful Bill Act (OBBBA) was passed with many federal tax changes for 2025:

No Tax on Tips Deduction

Deduct up to $25,000 of “qualified tips.” Phase-out starts at MAGI $150,000 (Single) / $300,000 (MFJ). Employees in listed tipped occupations and certain self-employed (excluding SSTBs) may qualify.

No Tax on Overtime Deduction

Deduct up to $12,500 (Single) / $25,000 (MFJ) of “qualified overtime compensation” (the half portion of time-and-a-half required under FLSA and properly reported). Phase-out starts at MAGI $150,000 (Single) / $300,000 (MFJ).

No Tax on Car Loan Interest Deduction

Deduct up to $10,000 of interest on loans originated after 12/31/2024 for a new personal-use vehicle with final assembly in the U.S. Phase-out starts at MAGI $100,000 (Single) / $200,000 (MFJ). VIN must be reported on the return.

Senior Deduction (Age 65+)

Additional $6,000 per eligible taxpayer ($12,000 for MFJ if both spouses qualify), phased out at MAGI $75,000 (Single) / $150,000 (MFJ).

State and Local Tax (SALT) Cap Increase

If you itemize, you can claim up to $40,000 for SALT taxes paid. This was increased from a $10,000 cap.

Bonus Depreciation

Bonus Depreciation deduction percentage decreased from 60% to 40% for 2025 for the state of Minnesota. At the Federal level, purchases made after January 19th, 2025, Bonus Depreciation increases back to 100%. This is subject to exclusions, dollar limits and phase-outs.

As with every year, the standard deduction, income thresholds, and retirement contribution limits have all been adjusted up for inflation. The Adoption Credit was made partially refundable, the Child Tax Credit was enhanced, and AMT exemptions and thresholds were permanently increased.

Similar or no tax changes from last year:

The credit equals 30% of certain qualified expenses, including:

  • Qualified energy efficiency improvements installed during the year
  • Residential energy property expenses
  • Home energy audits

The maximum credit you can claim each year is:

  • $1,200 for energy property costs and certain energy-efficient home improvements, with limits on doors ($250 per door and $500 total), windows ($600), and home energy audits ($150)
  • $2,000 per year for qualified heat pumps, biomass stoves, or biomass boilers

Residential Clean Energy Credit

The credit equals 30% of certain qualified expenses, including:

  • Solar credit
  • Small wind energy
  • Geothermal heat pump
  • Fuel cells
  • Battery storage technology

Electric Vehicle Credits

You can claim a credit for up to $7,500 for a qualified new EV purchase. You can claim a credit up to $4,000 for purchasing a qualified used EV. These credits are eligible for purchases made on or prior to September 30, 2025. Both of these credits are subject to income limitations.

Minnesota K–12 Education Credit

The K-12 Education Credit eligibility for taxpayers allows you to claim the credit if your adjusted gross income falls below $79,760.

Minnesota Child Tax Credit

For taxpayers with income of less than $31,950 ($37,910 for MFJ), a refundable child tax credit can be claimed in the amount of $1,750 per qualifying child.

Minnesota Social Security Subtraction

Social Security has a 100% subtraction from Minnesota Taxable Income if their adjusted gross income is below a particular threshold.

Minnesota Landlords

Reminder – CRPs must be created using Minnesota Department of Revenue’s system and provided to tenants by Property Owners/Managers. For more information, contact them directly by calling 651.556.3017 or emailing [email protected].

Qualified Benefits Subtraction

Similar to the Social Security Benefit subtraction, certain public pension recipients and survivors qualify to have a portion subtracted from Minnesota Taxable Income so long as they are not drawing on Social Security as well. You will need to contact your payer if this applies to you.

To protect your data when sending your information to us, we offer the following options:

  1. Secure Client Portal: you will be able to upload documents to a secure site. If you wish to use this, please contact our office via phone (507.206.0677) or email ([email protected]), and we will set up an account for you. There is also an option for a Guest Exchange where you don’t need to set up an account ahead of time. The link is also in the top toolbar of the website menu.
  2. Drop off, mail, or fax your paperwork to our office. Please bring the completed Questionnaire and signed Engagement Letter when you drop off your documents.
  3. We do not encourage emailing your tax documents to us. If you prefer an electronic method, we highly suggest you utilize our secure client portal. This is free to use for all clients!

Our extended office hours begin January 26, 2026:

Monday–Thursday: 8:30 AM–5:30 PM
Friday: 8:30 AM–5 PM
Saturday: 9 AM–1 PM
*Closed Weekdays 12–12:30 PM

We appreciate you supporting Shurson Group, and we look forward to hearing from you soon!

Sincerely,
Your Shurson Group Team