Navigating 2025 Tax Changes: A Guide for Green Bay & De Pere Taxpayers

Introduction: Tax season 2025 is bringing a wave of changes that individuals and small business owners alike need to understand. From inflation-adjusted tax brackets to new IRS reporting rules, staying informed is key for effective tax preparation in Green Bay and De Pere. In this post, we’ll break down a trending tax topic in the CPA blogosphere – the latest tax changes affecting individuals and small businesses – and explain what taxpayers in Green Bay and De Pere should know. Our goal is to provide educational, easy-to-scan insights so you can approach this year’s tax preparation with confidence and avoid any surprises.

Tax Changes for Individuals in 2025

Inflation adjustments ease the burden (a little): The IRS adjusts income tax brackets and the standard deduction each year for inflation. For the 2024 tax year (filed in April 2025), these inflation adjustments have widened the brackets, so most taxpayers won’t see a big jump in tax rates on the same income. In fact, the standard deduction has increased to roughly $15,000 for single filers and $30,000 for joint filers for 2024 returns. That means a bit more of your income is tax-free, helping Green Bay families keep more money in their pockets. However, be aware that inflation can still push you into higher brackets over time (the “bracket creep” effect), so any relief is relatively modest.

*Key credits and exclusions: Important tax credits remain in play for 2025. The Child Tax Credit and Earned Income Credit continue at similar levels (after the temporary boosts of prior years), giving moderate-income De Pere households some relief. One small change is the annual gift tax exclusion – it rose to $19,000 per recipient (up from $18,000) due to inflation indexing. This higher limit can benefit generous relatives or anyone helping family with larger monetary gifts. Additionally, retirement savers get a boost: the IRS increased the 401(k) contribution limit by $500 for 2025, and those aged 60-63 enjoy higher catch-up contribution limits (up to $11,250) for their 401(k) plans. These changes allow individuals in Green Bay to save more for retirement tax-free, which is a smart move to consider during your tax preparation and planning.

New IRS Reporting Rules for Online Income and Side Gigs

 The IRS has introduced stricter reporting requirements targeting online transactions and gig-economy income – a hot topic in the tax world right now. If you sell items on eBay, Etsy, use Venmo/PayPal for payments, or have a side hustle in Green Bay or De Pere, pay attention. For 2024 transactions (filed on your 2025 return), the IRS drastically lowered the Form 1099-K reporting threshold from $20,000 to $5,000. In practical terms, this means many more people will receive a 1099-K form reporting their payments received through third-party platforms. Even relatively modest amounts (just $5k in total sales) will trigger a tax form now, whereas previously only high-volume sellers saw these forms. And this is just the beginning – the IRS plans to phase in an even lower threshold: more than $2,500 in payments for 2025, and $600 by 2026. So, a year or two from now, virtually any profitable online sales or paid gig could be reported to the IRS.

What does this mean for you? It’s not a new tax, but it does mean you must keep good records and report your income from casual sales or side jobs. If you occasionally sell Packers tickets, craft goods, or used items online in De Pere or Green Bay, ensure you separate personal transactions from business transactions on payment apps. Only profits from sales of goods or services are taxable, but with more IRS forms coming your way, you’ll want documentation to prove what’s non-taxable (e.g. personal item sales at a loss, reimbursements). Crypto alert: The IRS is also increasing oversight of cryptocurrency transactions. New rules are emerging that will require crypto brokers to issue tax forms for sales, and taxpayers are expected to report gains or losses from digital assets. In short, the IRS is cracking down on unreported digital income, so make sure to include all such earnings in your tax preparation.

Tax Updates for Small Businesses and Self-Employed Owners

Small business owners in Green Bay and De Pere face many of the same new rules mentioned above, plus a few special updates:

• Business credits and deductions: 2025 brings some new tax incentives aimed at small businesses. For example, there are fresh or expanded credits for hiring certain workers (like veterans), for employee training, and for investing in renewable energy or new technology in your business. These credits can directly reduce your tax bill dollar-for-dollar, so a Green Bay business that, say, installs solar panels or hires a qualifying veteran could reap extra tax savings. Additionally, some deductible expense rules have been revised – one notable tweak for 2025 is in home office deductions (important for the many remote businesses or freelancers in De Pere). Be sure to check what’s changed before claiming your usual write-offs.

• Depreciation is shrinking: If your small business is planning equipment purchases, note that bonus depreciation is phasing down. This popular deduction, which let businesses immediately write off a large percentage of asset purchases, was 100% a couple years ago but has dropped to 60% for 2024 and 40% in 2025. After 2025, bonus depreciation may vanish entirely (back to 0% unless laws change). Consider timing any major equipment or vehicle investments to take advantage of the higher depreciation while it lasts – it could significantly lower taxable income for a De Pere manufacturer or a Green Bay contracting business, for instance. Standard Section 179 expensing is still available, but those limits too could be revisited in future tax reforms.

• State and local taxes (SALT): The federal $10,000 cap on state and local tax deductions is still in effect for 2025, which particularly affects high-property-tax homeowners and pass-through businesses. The good news is Wisconsin, like over 30 states, offers a workaround for pass-through entities (often called an elective Pass-Through Entity Tax). This can help certain businesses bypass the SALT cap and deduct state taxes at the entity level. If you’re a small business owner in Green Bay or De Pere operating as an S-Corp, partnership, or LLC, ask your CPA about electing this – it’s a savvy strategy until the SALT cap potentially expires after 2025.

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Looking Ahead: Big Changes on the Horizon (Post-2025)

Why is there so much buzz about tax changes in the CPA blogosphere right now? Because we’re on the cusp of potentially major tax shifts after 2025. Many provisions of the 2017 Tax Cuts and Jobs Act (TCJA) are set to expire at the end of 2025 without further action. This includes the lower individual tax rates that we’ve enjoyed in recent years, the 20% Qualified Business Income deduction for pass-through business owners (a big one for small businesses), and the significantly higher estate tax exemption. In plain terms, starting in 2026 tax rates for individuals would go up, the small business 20% write-off would disappear, and the amount of wealth you can pass on tax-free would drop by about half. For many Green Bay and De Pere families and entrepreneurs, that could mean higher tax bills unless new legislation extends the cuts.

The political outlook is uncertain. Lawmakers are actively debating how to handle this “2025 sunset.” Some proposals aim to extend or even deepen tax cuts for individuals and businesses, while others could let breaks expire and even raise certain taxes (for example, on very high earners or large corporations). Congress is mulling many tax reform proposals that could have a significant impact. We might see decisions on this in 2025, but it’s wise for taxpayers to plan ahead now. If you anticipate income spikes or major life events in the next couple of years, talk to a tax professional about strategies: you may want to accelerate income or deductions into 2025, or take advantage of the currently favorable provisions while they last. Year-end tax planning in 2025 will be especially critical.

Tips for Smooth Tax Preparation in Green Bay and De Pere

With all these changes, how can you best prepare your 2025 tax return (and beyond)? Here are a few tips to keep your tax preparation process running smoothly:

1. Stay organized and keep records: This is the year to be diligent with tracking income and expenses. If you’re a gig worker or online seller in De Pere, keep detailed records of what you paid for items you sold and any costs involved – you’ll need these to report net income accurately now that more transactions are reported to the IRS. Likewise, Green Bay small businesses should maintain up-to-date financial statements and documentation for any new credits or deductions they plan to claim.

2. Don’t miss deadlines: Mark your calendar for tax deadlines (April 15, 2025 for most individual filings, and varying business deadlines like March 17 for S-corps, etc.). Missing a filing or payment deadline can trigger penalties and interest, which is an unnecessary hit to your finances. If you need extra time to gather information, file an extension – but remember that extensions only extend the paperwork, not the payment due. Pay at least an estimated amount by April to avoid penalties.

3. Leverage professional help: Given the complexity of new rules and the looming changes, consider working with a tax professional for your tax preparation in Green Bay or De Pere. An experienced CPA or tax preparer will ensure you’re taking advantage of the latest credits (like those Wisconsin business incentives) and staying compliant with the new reporting requirements. They can also help strategize for the 2026 changes now, so you’re not caught off guard. As one CPA guide put it, proactive tax planning with a qualified advisor can save you money and stress in the long run.

4. Plan for 2026 now: It’s not too early to discuss the 2026 landscape with your accountant. If key tax breaks are expiring, 2025 might be your last chance to utilize them. For example, a small business owner in De Pere might decide to maximize use of the 20% QBI deduction in 2025 by accelerating some income or ensuring they qualify, since it may not be around in 2026. Being forward-thinking is part of effective tax preparation and can make a big difference.

Conclusion: The tax environment is evolving, and both individual taxpayers and small businesses in Green Bay and De Pere have a lot to keep track of. The trending topics – from new 1099-K reporting rules to the coming expiration of tax cuts – all point to one thing: staying informed is essential. By understanding these 2025 tax changes and planning accordingly, you can avoid surprises, minimize your tax burden, and take advantage of any benefits available. Effective tax preparation is not just about filling out forms; it’s about strategizing under the current rules and preparing for what’s next. If you feel overwhelmed, you’re not alone – tax laws are complex, but help is available. Consider reaching out to a local CPA firm in Green Bay or De Pere for guidance tailored to your situation. With careful preparation and possibly some professional advice, you can navigate this tax season confidently and set yourself or your business up for success in the years ahead. Here’s to a smooth and informed 2025 filing season!

Sources:

• Susan S. Lewis, CPA – “Your Essential Guide to IRS Tax Changes for 2025.” (Jan 28, 2025) – Lewis.cpa Blog

• Preferred CFO – “Tax Season May Be Different This Year – 2025 Guide to Small Business Taxes.” (Mar 13, 2025)

• Brown Edwards CPAs – “Critical Tax Changes Coming in 2025: What Business Leaders Need to Know.” (Nov 19, 2024)

• IRS News Release – “Form 1099-K Threshold is $5,000 for 2024, $2,500 for 2025, $600 for 2026.” (IR-2024-299, Nov 26, 2024)

• TaxAct Blog – “What to Know About the New 1099-K Reporting Thresholds.” (Dec 9, 2024)