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Don’t Miss These Tax Changes for 2025
Several important tax provisions will take effect for tax year 2025, offering targeted tax relief for families, workers, seniors, and small businesses. Here’s what you need to know about what’s changing, and how it could impact your tax return come April.
- Higher Standard Deduction
The standard deduction is now permanently higher:
$15,750 (single), $23,625 (head of household), and $31,500 (joint filers).
- New Senior Deduction
Seniors age 65+ can claim an additional $6,000 deduction.
- Expanded Child Tax Credit
Increased to $2,200 per child, plus a $1,700 refundable portion and a $500 credit for other dependents.
- State and Local Tax Deduction (SALT) Raised
Temporarily raised from $10,000 to $40,000 in 2025, with phaseouts for high earners.
- New Tip & Overtime Deductions
Workers in eligible industries can deduct up to $25,000 in tips and $12,500 in overtime pay (2025–2028).
- Car Loan Interest Deduction
Up to $10,000 for interest paid on U.S.-assembled personal vehicles (2025–2028).
- Trump Accounts for Kids
A new for of IRA savings tool for kids under 18, with a $5,000/year contribution cap and a $1,000 baby bonus for 2025–2028 births.
- Boost for Small Business Expensing
Section 179 expensing limit jumps from $1M to $2.5M, helping small businesses invest and grow.
- Bigger Employer Childcare Credit
Increased from $150,000 to $500,000 (or $600,000 for small businesses), with better access for pooled resources.
- $20K / 200 Transaction Rule Restored
Online platforms no longer have to send 1099-Ks unless a user hits both $20,000 in sales and 200 transactions per year.
Congressional App Challenge
We are pleased to announce that the Congressional App Challenge (CAC), a competition designed to encourage student participation in computer science and coding, will be hosting our annual coding competition this year. Students are encouraged to register online and submit their app by OCTOBER 30!
This nationwide effort allows students to compete against their peers by creating an application (also known as an “app”) for desktop/PC, web, tablet, mobile, raspberry Pi or other devices. We accept any programming language, such as C, C++, Java, JavaScript, Python, Ruby, or “block code.” The Challenge is designed to promote innovation and engagement in computer science.
The Congressional App Challenge is open to all middle and high school students in the Sixth Congressional District of Arizona. Students entering the competition must submit their app to CongressionalAppChallenge.us during the Competition Submission Period with the deadline being October 30, 2025.
The winner from the First Congressional District will be featured on CongressionalAppChallenge.us. The winning app will also be eligible to be on display in the U.S. Capitol, honoring the winners from across the country. For more information, please visit the official Congressional App Challenge website at STUDENT REGISTRATION, or contact Chris Wiley of my District Office Staff at (480) 946-2411.
Recognizing Some Amazing Citizens of AZ-01
The end of summer is always bittersweet. Over the past couple of weeks, we said goodbye to five of our incredible interns, each one a proud representative of Arizona’s 1st Congressional District.
Our district is immeasurably fortunate to raise and send out such a remarkable generation of future leaders. These young men and women are no exception. Over the course of the summer, they deepened their knowledge of casework and legislative policies, contributed meaningfully to our work, and reminded us of the power of curiosity and service.
Thank you for a wonderful summer. We can’t wait to see what you accomplish next.
Saving Lives With Early Detection
Recently, I had the opportunity to meet with a coalition of patient groups here in Arizona. We talked about the Multi-Cancer Early Detection Screening Coverage Act, which I am proud to co-sponsor, and the impact it could have for patients and families across our state.
The coalition includes organizations such as the Cancer Support Community of Arizona, Brain Injury Association of Arizona, Bag It Cancer, Arizona Prostate Cancer Coalition, Southwest Prostate Cancer Association, Check For A Lump, Arizona Myeloma Network, Crohn’s and Colitis of Arizona, and Arizona Bleeding Disorders.
I am grateful for the chance to hear directly from these advocates and to continue working with them on expanding access to early detection and life-saving care.
Safeguarding Taxpayer Dollars with AI
Artificial intelligence, though scary to some, is a tool. A tool that I believe can be used to shrink costs and support oversight efforts, and close enforcement gaps.
In the past few years, the IRS has made great progress in cracking down on fraud, uncovering more than $9 billion in fraudulent activity in 2024 alone.
In light of these findings, I worked with my colleague Congressman Vern Buchanan to explore how emerging AI tools can help the IRS combat tax fraud and recover stolen taxpayer dollars.
Our bill, the DETECT Act, directs the Government Accountability Office (GAO) to study how AI can further enhance these efforts, ensuring that our enforcement tools keep up with modern threats and that your money is protected.
JEC Update
I want you to provide you with some critical insights from the Joint Economic Committee’s July 2025 Arizona Employment Update.
In July, Arizona’s unemployment rate held steady at 4.1 percent, up from 3.6 percent a year ago. The state lost 4,900 payroll jobs, it’s third straight monthly decline. Even so, Arizona has added 29,600 jobs over the past year.
Nationally, payrolls grew by 73,000 in July and the unemployment rate rose to 4.2 percent. Unemployment fell in 6 states, rose in 15, and was unchanged in 30. Arizona ranks 25th in the nation for overall job growth over the past year and 18th for private sector growth.
The Joint Economic Committee releases fiscal updates on a regular basis, and you can receive these updates by registering HERE.
What I'm Reading and Why it Matters
Arizona Heat, Meet AI-Powered Cooling — Ultrabroadband and band-selective thermal meta-emitters by machine learning
I recently came across a fascinating article regarding the intersection of machine learning and materials science, and it could have significant implications for Arizonans.
Researchers have developed ultra-broadband thermal meta-emitters (TMEs) using AI-augmented design, a process that outperformed traditional engineering methods. These TMEs are ultra-thin coatings that reflect sunlight and emit heat more efficiently than conventional materials, helping buildings stay cooler without relying on as much air conditioning. The image below shows calculated energy savings from application of the TME to residential buildings, with savings found in the lower United States.
While I still have questions about the cost of manufacturing these new materials, this research is a clear win for AI in engineering. Not only does it optimize material design, it opens the door to cost-effective cooling. |