Trending Tax Topics in June 2025: Key Updates for Individuals and Small Businesses

As we reach the midpoint of 2025, taxpayers in Green Bay and De Pere are facing a rapidly evolving tax landscape. From new IRS rules to emerging deductions and planning strategies, staying informed about trending tax preparation topics has never been more important. In this article, we highlight several hot tax themes gaining traction in June 2025 – including IRS updates, fresh tax breaks, compliance issues, and financial planning moves – that can help both average filers and small business owners improve their tax situation or prepare for changes ahead. Whether you’re an individual taxpayer or a local entrepreneur, these insights will keep you proactive and ready for what’s next.

IRS Updates and New Proposals in 2025

One major development affecting taxpayers from Green Bay to De Pere is the IRS’s ongoing modernization and policy changes in 2025. For example, the IRS has expanded its new Direct File program, allowing eligible taxpayers in 25 states (including Wisconsin) to e-file directly with the IRS for free. This rollout – a first for the agency – gives many individuals a simpler tax prep option and reflects broader efforts to improve service. The IRS has also introduced voice and chat bots on certain help lines to reduce wait times and answer basic questions, part of an initiative that has pushed phone service levels to roughly 85% with under 5-minute waits. These tech upgrades mean a smoother filing experience for many.

At the same time, big-picture tax policy is in flux. Congress is debating a sweeping tax bill (sometimes dubbed the “One Big Beautiful Bill”) to address provisions of the 2017 Tax Cuts and Jobs Act (TCJA) that expire after 2025. Lawmakers are considering whether to extend or adjust various tax cuts, credits, and the $10,000 state and local tax (SALT) deduction cap to avoid a “tax cliff” in 2026. While any new law is uncertain as of June 2025, the ongoing discussion signals that taxpayers in Green Bay and De Pere should be aware of potential changes on the horizon. It’s wise to follow these developments and consult a professional if needed, so you can adapt your tax planning. If key individual and small business tax breaks are not extended, you might face higher rates or new rules in 2026 – but proactive planning now (or taking advantage of current rules while they last) can mitigate surprises.

New Deductions and Credits to Leverage in 2025

Another trending topic for both small businesses in Green Bay and individual filers in De Pere is the array of new tax preparation incentives and inflation-adjusted breaks available for 2025. Notably, the IRS’s annual inflation adjustments mean standard deductions and tax brackets have increased, which can slightly lower tax bills for many Americans. For instance, the standard deduction for a married couple filing jointly is now $30,000 for tax year 2025 (up $800 from 2024). Single filers get a $15,000 standard deduction (up $400), which, combined with widened tax bracket thresholds, allows more income to be taxed at lower rates. In practical terms, a Green Bay family taking the standard deduction keeps more of their income tax-free than last year, which is a win for household budgets.

Tax-saving opportunities don’t end there. Contribution limits for tax-advantaged retirement plans have also risen. Employees can now contribute up to $23,500 to a 401(k) in 2025 (or even more with catch-up contributions if age 50+). Small business owners with solo 401(k)s or SIMPLE IRAs likewise see higher caps. Increasing your retirement contributions to these new limits can both boost your future nest egg and reduce taxable income today. Additionally, several tax credits have been updated or made easier to use. A great example is the electric vehicle (EV) tax credit: If you purchase a qualifying EV in 2025, you may be eligible for up to a $7,500 credit, and thanks to recent changes you can now receive that credit instantly as a rebate or discount at the dealership. This point-of-sale credit feature (new in 2024–2025) is gaining traction, as it effectively lowers the upfront price of an EV rather than making you wait until filing time. Both individual car buyers and businesses adding electric vehicles to their fleets should take note of this incentive.

Small businesses also have industry-specific credits and expanded deductions to consider. Credits for actions like hiring veterans or investing in renewable energy remain in play for 2025, potentially reducing your tax if you meet the criteria. The IRS is even highlighting underused breaks such as the Employer-Provided Child Care Credit (worth up to $150,000 for companies that help provide child care) to encourage supportive workplace practices. On the deduction side, businesses that invest in equipment should be aware that bonus depreciation – the special deduction allowing immediate write-off of equipment costs – is phasing down to 40% in 2025 (from 60% last year). However, the Section 179 expensing limit remains high (over $1.2 million of purchases can often be fully expensed). In short, you may still deduct most or all of a new equipment purchase, but you’ll rely more on Section 179 now that bonus depreciation is less generous. Planning capital investments sooner rather than later could lock in better deductions under current law. Make sure to review what new or expanded tax breaks apply to you this year – taking full advantage of them can meaningfully improve your 2025 tax outcome.

Compliance Challenges: Gig Work, Apps, and Crypto

Trending tax conversations in June 2025 aren’t all about savings – compliance is a hot topic too, especially for the growing ranks of gig workers and online sellers. If you earn side income through rideshare driving, freelancing, e-commerce, or even occasional app transactions, be aware that the IRS has tightened reporting rules that affect people in Green Bay, De Pere, and nationwide. Under a phased rollout of a new rule from the American Rescue Plan Act, third-party payment platforms like Venmo, PayPal, eBay, or Etsy will issue Form 1099-K for much smaller amounts of annual income than before. In fact, for 2025, the threshold for receiving a 1099-K form has dropped to $2,500 in business transactions (it was over $20,000 in prior years). By 2026 it’s slated to fall to the full $600 threshold. This means many more casual sellers and gig workers will be getting tax forms for their online income, and the IRS will be aware of those earnings. The agency has explicitly warned that it is “getting more aggressive with digital income tracking” and data-matching of these reports. In practical terms, you should not ignore any 1099-K (or 1099-NEC for freelance work) that you receive – failing to report the income it shows could trigger IRS scrutiny or penalties.

Compliance tips for side hustlers: To stay on the right side of the IRS, gig workers and small businesses should adopt good habits now:

• Track every dollar of income and expense. Keep records of all payments you receive (yes, even those $50 Zelle payments or cash tips) and your business-related expenses. A simple spreadsheet or bookkeeping app works well. Detailed records substantiate your reported income and any deductions if questions arise.

• Pay quarterly estimated taxes if needed. Gig economy earnings often aren’t subject to withholding. To avoid an unpleasant surprise and underpayment penalties, you may need to remit estimated tax payments each quarter (use IRS Form 1040-ES). June 15 and September 15 are key estimated tax due dates for 2025 – mark your calendar.

• Report all your earnings, even without a form. Remember that not every payment will have a formal tax form, but it’s all taxable. For example, if you were paid $2,000 via cryptocurrency or received $1,000 through an app that didn’t issue a 1099, you still must report it as income. The IRS treats cryptocurrency as property, meaning it’s taxable when received or sold for a gain. Don’t assume unreported means untaxed – the IRS’s improved algorithms are catching inconsistencies.

• Don’t ignore IRS notices. If the IRS does send a letter about unreported income or any other issue, respond promptly and honestly. Even a small discrepancy can snowball into bigger problems (interest, penalties) if left unaddressed. It’s far better to tackle it early – often a simple explanation or correction can resolve the matter.

Finally, if you feel out of your depth, seek professional guidance. With IRS enforcement on the rise in 2025, informed taxpayers who act early have the best chance to avoid trouble. Many local tax pros in Wisconsin are familiar with these new rules and can help gig workers or small businesses navigate compliance, whether it’s sorting out 1099 forms, crypto transactions, or back tax issues. In short, take compliance seriously: it’s a trending topic because it’s where many people get tripped up, but with some diligence you can stay on track and sleep easier.

Smart Tax Planning Moves for Mid‑Year

Halfway through 2025 is an excellent time to do a financial checkup and implement tax-wise strategies. Taxpayers in Green Bay and De Pere can benefit from a mid-year review of their finances as part of prudent tax prep. One simple but important step is to check your paycheck withholding. The IRS operates on a pay-as-you-go tax system, so you should ensure enough tax is being withheld (or paid in estimates) to cover your expected liability. If you’ve had life changes – like a new job, marriage, or buying a home – update your Form W-4 at work so you’re not drastically over- or under-withheld for the year. Adjusting now can prevent a big bill or refund when you file. Similarly, small business owners should review year-to-date profits and make sure their Q1 and Q2 estimated payments align with their income. If business is booming, increasing your next estimate can fend off penalties later; if income dipped, you might reduce estimates and improve cash flow.

Another mid-year strategy is to maximize use of tax-advantaged accounts. As noted, contribution limits are higher in 2025 for retirement plans and health savings accounts – so challenge yourself to boost your savings rate if you’re not on track to hit those limits. For example, if you haven’t yet adjusted your 401(k) deferrals to reflect the new $23,500 cap, doing so in the second half of the year can increase your pretax savings. Entrepreneurs and freelancers might consider setting up a SEP IRA or solo 401(k) now to allow larger deductible contributions for 2025. Also look into tax credits or deductions tied to actions you can still take this year. Do you qualify for energy efficiency credits by making home or office improvements? Is there an opportunity to purchase needed business equipment before year-end to leverage Section 179 expensing? Plan ahead for these moves rather than scrambling in December. By spreading out investments or charitable contributions over the year (instead of last-minute), you can manage cash flow and still reap tax benefits.

Lastly, keep an eye on the future. With possible tax law changes coming and many current tax provisions set to expire after this year, some advisors suggest thinking ahead. For instance, if you anticipate higher tax rates in 2026, you might evaluate Roth conversions or realizing some capital gains in 2025 while rates are historically lower. Conversely, if certain deductions will sunset, use them while available (e.g. the 20% Qualified Business Income deduction for pass-through businesses is scheduled to end after 2025). While these are complex decisions beyond the scope of this article, raising them now with a financial planner or tax advisor can help you formulate a long-term strategy. The key takeaway for mid-year 2025 is balance: enjoy the summer, but also take a little time to organize your tax documents, adjust your tax plan, and avoid the year-end rush. The IRS even publishes a June Tax Tip reminding people that a few simple steps throughout the year can make next filing season much less stressful – that’s sage advice worth following.

Conclusion: By staying on top of these trending tax topics, individuals and small businesses in Green Bay and De Pere can make smarter decisions for the rest of 2025. Tax rules and policies are always moving, but proactive planning and awareness are the best defense against unwanted surprises. From leveraging new tax breaks to tightening up compliance with IRS rules, a little effort now can pay off in the form of lower taxes, fewer headaches, and greater financial confidence. If you’re unsure how any of these issues apply to you, consider reaching out to a qualified tax professional for guidance tailored to your situation. Here’s to finishing 2025 on a financially savvy note – with your tax preparation under control and your tax goals on track for the future.

Sources:

1. IRS News Release – IRS announces Jan. 27 start to 2025 tax filing season (expansion of Direct File and service improvements)

2. City National Bank – 2025 Tax Changes to Know (inflation adjustments to deductions, brackets, and credits)

3. Preferred CFO – 2025 Guide to Small Business Taxes (overview of tax law changes and TCJA sunset debate)

4. U.S. Bank – Maximizing Deductions: Section 179 and Bonus Depreciation (equipment expensing and bonus depreciation phase-down)

5. WILAW Tax & Wealth Advisor – IRS Adjusts 1099-K Reporting Thresholds (phased lower thresholds for payment app reporting)

6. National Law Review – Side Hustles Can Mean Big Tax Trouble (gig income pitfalls and IRS enforcement)

7. Rocket Lawyer – Cryptocurrency and Tax Implications for Your Business (IRS treats crypto as property, taxable on receipt/use)

8. IRS Tax Tip (June 11, 2025) – Year-round tax planning tips for taxpayers (mid-year withholding checkup advice)