July 2025 Tax Tips

January 1, 2025

It’s time for tax fireworks!

July gets off to a flashy start thanks to America’s annual birthday celebration on July 4.

But there are plenty of other tax pyrotechnics, metaphorically speaking, to light up this first full month of summer.

This year, in addition to the usual new state tax laws and tax holidays, we also have a multitude of federal Internal Revenue Code tweaks and additions contained in the One Big Beautiful Bill Act.

Some the law’s changes apply to the 2025 tax year, meaning we’ll need to review how they might apply to us and help lower our current tax bill.

And, of course, we can’t forget about potential severe weather, Mother Nature’s own personal explosions. When these events are catastrophic, they could have tax implications.

Taxes now and in the future: The spectacle of new tax provisions and how they affect us is the obvious main event this month. But we can’t forget about the regular old tax tasks, some of which are listed in the July Tax Tasks over in the ol’ blog’s right column.

But that list is just an appetizer. More, and more hearty tax offerings, are on this page’s menu collection of tax tips.

Some July tax tips will help folks who couldn’t file their 2024 tax return by April’s Tax Day. Some of these procrastinators asked the Internal Revenue Service for more time. Others live in areas hammered by a major disaster earlier this year, which prompted the tax agency to extend their deadline.

Other tips this month will look at ways to trim our already accruing 2025 tax bills. As noted, some of these tax-saving moves will come from the new comprehensive tax and budget bill enacted earlier this month.

I know, you’d rather be enjoying the summer than discussing the dualities and demands of taxes and associated moves to ease their bite. So would I. That’s why I promise not to take up too much of your time, starting now with the below list of July tax tips.

Tax changes take effect in many states on July 1 — Most tax watchers are focused on Capitol Hill, as Congress works to finalize a huge piece of legislation for Donald Trump to sign on July 4. But there’s another July date that’s also of tax importance. July 1 is when many state law changes take effect. Here’s a look at the new state tax laws that will kick in then. (July 1, 2025)
Tax moves to make in July — July, the first full official summer month is here! That means there are some hot tax moves you should consider because, even though we celebrate America’s independence each July 4, we are never free of taxes. (July 2, 2025)
Drivers in 12 states face higher gas taxes — It’s a busy Fourth of July holiday, especially if you’re hitting the nation’s highways. Of the 72.2 million people projected by AAA to travel this long Independence Day break, almost 62 million are expected to drive. And in 12 states, motorists will pay higher gasoline excise taxes when they refill their vehicles. (July 3, 2025)
What the one big tax bill could mean for you — It’s official. The One Big Beautiful Bill Act is law, signed at a White House July 4th ceremony. Taxes are a major part of the nearly 1,000-page measure. Here’s a collection of articles on what the new tax (and more) law could mean for your tax planning and ultimate Internal Revenue Service bill. (July 5, 2025)
Social Security still taxed, but new senior bonus will help some older filers — No, it’s not the “no tax on Social Security” promised by Donald Trump during the presidential campaign. But the new senior bonus in the recently enacted One Big Beautiful Bill Act will provide some older taxpayers, including those who don’t collect the federal retirement benefit, some relief at return filing time. (July 6, 2025)
Tax pros can help with law changes — The one big bill’s tax law changes could be a big tax headache for filers. As you peruse the provisions, you might want to get some professional help in determining just what they mean and how they might affect your tax filings. These tips can help you pick the perfect tax pro for your financial and tax circumstances. (July 7, 2025)
Nationwide sales tax rates as of July 1 — Most of us pay sales tax on our purchases. This tax year, the One Big Beautiful Bill‘s increase to the state and local taxes (SALT) cap means some of us will be deducting them on our federal tax returns. Just where does your state’s sales tax rate rank? (July 8, 2025)
7 tax rates remain, standard deductions get bump — A lot of tax law is changed by the One Big Beautiful Bill Act, but some provisions that affect most filers remain pretty much the same. The seven tax rates and the larger standard deduction amounts, which would have expired on Dec. 31 if Congress hadn’t acted, are now permanent. Plus, the new law bumps up the standard deduction amounts for 2025, and adds some inflation protections next year for filers in the lower tax brackets. (July 9, 2025)
Summer means sales tax holidays: 4 in July, 13 in August — Summer is going strong, but before you know it, school will be back in session. That’s why several states hold annual sales-tax holidays this time of year, tying the no-tax events to back-to-school needs. There are 17 state sales tax holidays scheduled this summer, with four July events (starting this weekend!), and the remainder in August. (July 10, 2025)
6 tips for back-to-school tax holiday shoppers — Is your state one of the 17 holding a sales tax holiday this summer? Before you head out to make tax-saving purchases, check out these 6 shopping tips. They could help you make the most of your state’s no-tax event. (July 11, 2025)
Tax relief for Texas flood victims — Texans are still reeling from the deadly and catastrophic flooding around the July 4 holiday. While many are still seeking answers about pre- and post-disaster governmental actions, both local and federal, there’s at least a bit of tax certainty. The Internal Revenue Service has granted tax relief to those in the Lone Star State disaster areas, including a new Feb. 2, 2026, filing deadline. (July 12, 2025)
Tax advantages of turning your hobby into a business — A hobby is a good way to take a break from life’s day-to-day pressures. Sometimes, a hobby also can create an earnings opportunity. Note, however, that extra cash from your avocation is taxable income. And if the earnings stream is growing, it might be worth considering converting your hobby to a business to take advantage of some tax breaks. (July 14, 2025)
Navigating the new tax deduction for auto loan interest — If you’re in the market for a new car and need a loan to buy it, the loan interest might be tax deductible. For a while. If your auto meets requirements. And you don’t make too much money. Here’s how to navigate the new car loan interest deduction in the newly enacted One Big Beautiful Bill tax law. (July 16, 2025)
Burn areas in NM now get tax relief for June flooding — Heavy rain following wildfires often leads to literal disaster. That’s what happened in New Mexico, when monsoonal rain in June rushed down burn scars from wildfires last year. Now FEMA and the IRS are offering the designated areas major disaster help and tax relief. (July 20, 2025)
7 tax considerations for divorcing couples — Marriage can be challenging. When it gets to be too much, and couples decide to divorce, there are tax matters that must be considered. Here are seven areas where taxes could come into play during a marital split. (July 21, 2025)
New tax law reduces gamblers’ loss tax break — You take your chances when you gamble. But for a long time, one sure tax bet was the ability to use losing wagers to offset all taxable winnings. That ends in 2026. A provision of the One Big Beautiful Bill now limits the gambling winnings offset to 90 percent of your losses. Two Nevada lawmakers are trying to change the new law back to the full loss amount. (July 22, 2025)
New tax law gives and takes from charitable donors — Most people give to charities because they want to, not for tax benefits. But if your contributions can pay off for you at tax-filing time, then by all means claim them. That will be easier on 2026 taxes for many filers thanks to the new donation deduction for taxpayers who don’t itemize. (July 23, 2025)
Home sale tax break already is generous, but there’s a move to expand it — A House bill has been introduced that would end capital gains tax on home sale profits. Donald Trump has indicated he would support such a move. But don’t put your primary residence on the market yet. It’s far from done, and until that happens, here’s a look at the current, and already generous, tax break for home sellers. (July 24, 2025)
One Big Beautiful Bill tax breaks taking effect in 2025 — Even when tax reform benefits you, there’s the matter of determining the specifics to claiming the tax breaks, plus checking on when they take effect. Here’s a look at some of the major tax changes in the One Big Beautiful Bill that kick in for 2025, meaning they could come into play when we file our 1040s next year. (July 27, 2025)
13 sales tax holidays in August, with 9 of them on the month’s first weekend — The second round of summer back-to-school sales tax holidays are almost here. Thirteen are scheduled for August, with most of the tax-free bargains offered during the month’s first weekend. Check out the details on the eight events that start Friday, Aug. 1; the ninth that begins on Saturday, Aug. 2; and the four remaining tax holidays that fill out next month. If your state is one of them, get your shopping list ready! (July 29, 2025)
2026 tax season start pushed into February and Direct File is dead — Tax filing season 2026 is going to be lit. There’s a new Internal Revenue Service commissioner. There are fewer IRS employees. There are lots of new, special tax laws. The season also will be without Direct File, the IRS’ free online tax preparation and e-filing option. And it won’t officially start until around Feb. 17, 2026. (July 31, 2025)

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I can’t tell you how thrilled I am that you want to spend some of your valuable summer time checking out more tax tips. Rest assured, as the season’s (and year’s) remaining months arrive, all the pages listed and linked below will be filled with timely tax information.

And yes, you can click on the yet-to-come August through December links. Those tax tips pages are live in the sense that like this July page, the links will open instead of going to my 404 page.

But those future months tax tips pages don’t have any advice yet because, well, they aren’t here. Instead, you’ll just find an energetic guy telling you to whoa up. When those calendar pages are flipped, the tips will be added. But feel free to check out the January through June advice, especially if you’re still working on your 2025 tax return.

Again, I appreciate your wanting more tax tips, and your patience on waiting for them to be posted.

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