No one wants to think about taxes at year-end. Here's why you should.

Core Insights - Tax planning is crucial, especially with the new tax law making 2025 a significant year for taxpayers [2] Tax Deductions - A new $6,000 bonus deduction is available for seniors aged 65 or older with an income under $75,000 [2] - Up to $10,000 of auto loan interest is deductible for qualifying car purchases, phasing out for single filers with income over $100,000 and joint filers over $200,000 [3] - Workers can deduct up to $25,000 in qualified tips and $12,500 in overtime for single filers or $25,000 for joint filers, with phase-out thresholds at $150,000 for single filers and $300,000 for joint filers [4] - The state and local tax deduction (SALT) has increased from $10,000 to $40,000, phasing out for taxpayers with modified adjusted gross income above $500,000, which may influence the decision to itemize deductions [5] Itemization Considerations - Taxpayers should monitor potential deductions such as mortgage interest, property taxes, medical expenses, and charitable contributions to determine if they can exceed the standard deduction [6] Urgent Tax Breaks - Individuals under 59-1/2 can withdraw up to $2,500 from retirement plans for long-term care insurance premiums without a 10% penalty, but this must be done within a two-day window at the end of the year [8]