Hello Everyone –

We hope you all had a wonderful Thanksgiving! As we wrap up 2025, we wanted to share a few important updates and reminders before we head into tax season.

Child Tax Credit for 2025

Families with qualifying children can benefit from the increased Child Tax Credit this year-

• Up to $2,200 per child under age 17.
• Refundable portion up to $1,700 per child for those with little or no tax liability.
• Phaseout begins at $400,000 MAGI for married filing jointly and $200,000 for single filers.

Other Dependent Credit (COD) for 2025

The Credit for Other Dependents remains $500 per qualifying dependent who doesn’t qualify for the Child Tax
Credit.

Trump Accounts for Kids

As part of the One Big Beautiful Bill (OBBBA), new Trump Accounts have been created to help families build long-
term savings for children under 18.

• Parents of children born between 2025 and 2028 will need to include an election with their tax return for the
  year the child was born to receive a $1,000 government seed contribution. We will automatically include this
  election with your tax return unless told otherwise if you have a child born in these years.
• Families can contribute up to $5,000 per year
• Employers can contribute up to $2,500 per year for an employee’s child (this counts against the $5,000 limit
  by families)
• Once the child turns 18, the funds are converted to IRA accounts and are subject to the withdrawal rules
  similar to other traditional IRAs.

Year-End Filing Reminder

The IRS e-file window closes December 26, 2025. If you have tax returns that need to be completed, please send
us your information as soon as possible.  We can still assist. Please reach out to info@hstaxcpas.com if you have
any questions.

Looking Ahead to 2026

We wish you a joyful holiday season and look forward to talking with you in the new year. Thank you for trusting us with your tax planning and preparation!