From the potential for more paperwork in third-party payments to shifts in how state and local tax deductions are calculated, tax impacts on financial planning in 2025 may have wide-reaching implications for your clients. Here are a few of the most significant changes to consider.

Download our 2025 Tax Planning Guide now!

Have Clients Check Their Tax Bracket

Due to inflation adjustments, tax planning in 2025 could get a bit easier for some clients as tax brackets widen. Basically, for those clients who were at either end of their current tax bracket in 2024, it’s possible their status may have shifted into a lower bracket — which would also lower their 2025 taxes. Which bracket your clients fall into could dramatically shift their taxable income, as well as other considerations such as retirement planning.

Third-Party Payments Could Get More Complicated

If your clients frequently use payment apps, money transfer services, or third-party websites like PayPal, Venmo, and eBay to get paid, chances are they could be dealing with more tax planning paperwork in 2025. Revisions to Internal Revenue Service (IRS)1099-K forms and reporting thresholds mean that all proceeds above $600 must be reported in official documentation — a significant lowering of the bar from the old $5,000 threshold.

While it’s the law to report all income in taxes, many of your clients may underreport such payments due to the previously high threshold — and that means they’ll likely be seeing more 1099 forms in the mail. Clients may need additional guidance on how to navigate the tax planning process if they commonly use third-party services as a source of income.

Consider Sheltering Some Income

The 2017 Tax Cuts and Jobs Act (TCJA) significantly reshaped the tax-planning landscape, relieving the tax burden on many clients; however, with those changes set to expire at the end of 2025 without further legislative action, now may be a good time to discuss some opportunities for protecting clients’ income in non-taxable accounts. If your clients are looking to save more as part of their retirement planning without worrying about tax, speaking with them about the benefits of tax-deferred, employer-sponsored retirement plans, such as 401(k) plans, or traditional and Roth IRAs may be advisable. If they’re looking to put non-taxable dollars toward a child’s future education, a 529 college savings account could also be helpful.

In addition, gifts to family members or charitable giving toward a favored nonprofit or cause can protect income during tax planning — so 2025 may be an ideal time for your clients to consider making such a gift.

"There's a few last-minute tax impacts that you can implement today,” said Sophia Duffy, JD, CPA, AEP®, associate professor of business planning and Tax Planning Certified Professional™ (TPCP™) program director in a recent interview with Yahoo Finance. “For example, increasing charitable deductions so that you go over the standard deduction may make sense. You could also take advantage of a strategy called tax loss harvesting. This may be a little bit more difficult, but for anywhere where you’ve seen market losses, you can actually realize that loss today and then use that to offset some capital gains with other investments tomorrow."

Keep an Eye on the Child Tax Credit

For clients with children, they may be interested to know the 2025 Child Tax Credit ceiling is more generous than ever. Under 2025 tax planning guidelines, the maximum refundable amount per child on tax returns will increase from $1,900 to $2,000. The impending expiration of the TCJA at the end of the year, however, could trigger a significant change in those refunds in 2026 — making it something you and your clients may want to watch.

Be Mindful of State and Local Tax Deductions

For your clients who may itemize their tax deductions to reduce taxable income, it will also be important to monitor developments in the state and local tax (SALT) deduction. With the advent of the TCJA, a $10,000 cap was placed on such deductions in tax planning, which can lead to a greatly reduced tax bill. With the TCJA’s future uncertain, that cap could well be rolled back in 2026, presenting an entirely new landscape of tax impacts on financial planning. For such tax planning purposes, you can help your clients by helping them take a long view of tax-informed planning — such as that found in the Tax Planning Certified Professional™ (TPCP™) Program.

Looking for more resources for your 2025 tax planning needs? Download our 2025 Tax Planning Guide.

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In this article compiling all the best tips and tricks for saving money, Wealth Management Certified Professional® (WMCP®) Program Director Michael Finke, PhD, CFP®, suggests setting up an automatic transfer to a high-yield savings account and taking advantage of your employer’s 401(k) plan.

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KING OF PRUSSIA, PA – February 3, 2025 – The American College of Financial Services is excited to announce the program for Horizons 2025, an inaugural, one-of-a-kind conference that will bring together the brightest minds in retirement planning to explore innovative strategies, insights, and solutions for today’s dynamic retirement landscape.

Hosted at the Loews Coronado Bay Resort in Coronado, California, Horizons offers an exclusive, immersive experience for retirement planners. Attendees will dive deep into holistic retirement income planning, longevity planning, and legacy planning, engaging in specialized workshops, breakout sessions, and networking opportunities focused on critical topics such as Social Security, Medicare, retirement psychology, income solutions, and housing options.

“We’re proud to create an event that will set the standard for how retirement planners come together to learn, grow, and share knowledge. Horizons is about breaking boundaries, exploring new horizons in retirement planning, and ensuring our profession evolves to meet the needs of retirees in 2025 and beyond,” said George Nichols III, CAP®, president and CEO of The American College of Financial Services. “This event is an exciting step forward in shaping the future of retirement and the profession itself, and we are thrilled to be leading this conversation with some of the most renowned experts in the field.”

This is essential to the future of solutions-first retirement advice, with generational demographics increasing the demand for retirement planning services, and retirees living ever longer lives. The dynamic agenda is available here, and features speakers including:

• Michael Finke, PhD, CFP®, professor of wealth management, Wealth Management Certified Professional® (WMCP®) program director, The American College of Financial Services
• Michael Kitces, MSFS, MTAX, CFP®, CLU®, ChFC®, RHU®, REBC®, CASL®, financial planner, speaker, blogger, and educator
• Jeffrey Levine, CFP®, CPA/PFS, ChFC®, RICP®, CWS, AIF, BFA™, chief planning officer, Buckingham Wealth Partners
• Ed Slott, CPA, founder and CEO, Ed Slott and Company
• Wade Pfau, PhD, CFA, RICP®, founder, RISAProfile.com
• Jamie Hopkins, Esq., LLM, CFP®, ChFC®, CLU®, RICP®, senior vice president, director of private wealth management, Bryn Mawr Trust
• Justin Fitzpatrick, PhD, CFA, CFP®, co-founder and chief innovation officer, Income Lab
• Eric Ludwig, PhD, CFP®, assistant professor of retirement income, Retirement Income Certified Professional® (RICP®) program director, The American College of Financial Services
• Fiona Greig, PhD, global head of investor research and policy, Vanguard
• Steve Parrish, JD, RICP®, CLU®, ChFC®, AEP®, professor of practice, retirement planning, The American College of Financial Services
• Chet Bennetts, CFP®, ChFC®, CLU®, RICP®, CLF®, assistant professor, financial planning, CFP® Certification Education and Chartered Financial Consultant® (ChFC®) program director, The American College of Financial Services
• David Blanchett, PhD, MSFS, CFA, CLU®, ChFC®, CFP®, managing director, portfolio manager, and head of retirement research, PGIM DC Solutions
• Lindsey Lewis, MBA, CFP®, ChFC®, managing director, the American College Center for Women in Financial Services
• Carolyn McClanahan, MD, CFP®, founder, Life Planning Partners, Inc.
• Kate Dore, CFP®, finance reporter, CNBC
• Jon Dorenbos, keynote speaker, professional magician, and former NFL player
• Will Guidara, restaurateur and author

And many more!

“Horizons is much more than a conference — it’s a transformational experience for retirement planners looking to advance their knowledge and stay ahead of the curve,” said Sandon Herzlich, vice president of retirement strategy at The American College of Financial Services.

“This event provides an unparalleled opportunity to connect with colleagues, hear from the foremost experts, and gain critical insights. The power of this event lies in the community it creates, the knowledge it fosters, and the cutting-edge solutions it brings to the forefront.”

Unlike traditional industry events, Horizons offers an agenda free of sales presentations. Instead, attendees will have the opportunity to engage with star speakers and top-tier experts, offering practical knowledge and applicable insights that directly enhance client relationships and business outcomes. Continuing education (CE) credits will also be available for qualifying sessions.

But it’s not all about learning. Horizons is also about fostering connections and offering relaxation. The event features exclusive networking opportunities and themed experiences unique to the San Diego area, ensuring a well-rounded and memorable experience for all attendees.

“We believe Horizons is the event that retirement planners have been waiting for — an immersive, community-driven experience that pushes the boundaries of what’s possible in our profession,” added Nichols.

For more information and to register, visit events.theamericancollege.edu/horizons.

ABOUT THE AMERICAN COLLEGE OF FINANCIAL SERVICES

Founded in 1927, The American College of Financial Services is the nation’s largest nonprofit educational institution devoted to financial services professionals. Holding the highest level of academic accreditation, The College has educated over 200,000 professionals across the United States through certificate, designation, and graduate degree programs. Its portfolio of applied knowledge also includes just-in-time learning and consumer financial education programs. The College’s faculty represents some of the foremost thought leaders in the financial services industry. Visit TheAmericanCollege.edu and connect with us on LinkedIn, Twitter, Instagram, Facebook, and YouTube. Discover all the ways you can expand your opportunities with us.

Contact

Sarah Tremallo
908-967-0381 / Stremallo@jconnelly.com

Jared Trexler
610-526-1268 / jared.trexler@theamericancollege.edu