Introduction
With major tax reforms proposed under Trump’s 2025 plan including rate reductions, expanded credits, and business incentives tax planning is no longer optional. It’s essential.
Whether you’re a salaried employee, business owner, or high-net-worth individual, this guide outlines key strategies to help you legally minimize taxes, stay compliant with IRS rules, and make the most of Trump’s proposed law changes.
Core Tax Provisions to Plan Around (IRC References)
- IRC §1 – Lower personal income tax rates
- IRC §24 – Enhanced Child Tax Credit
- IRC §199A – Continued 20% deduction for pass-through businesses
- IRC §164 – Increased SALT deduction cap
- IRC §2010 & §2505 – Estate and gift tax exemption increases
IRS Forms You’ll Be Using
- Form 1040 – Your primary individual income tax return
- Form 8995 / 8995-A – QBI deduction calculation
- Form 2441 & 8812 – For dependent and child tax benefits
- Form 709 / 706 – Gift and estate tax reporting (for HNW individuals)
- Form W-4 – Withholding updates for new tax rates
Top Tax Planning Moves for 2025
- Adjust Your Withholding Early
Use the IRS Withholding Estimator and file a new Form W-4 to match lower tax rates and increased credits.
- Accelerate or Defer Income Strategically
- If you’re self-employed or have flexible income:
- Accelerate income into 2025 to lock in lower rates
- Defer expenses to maximize 2025 deductions
- Maximize QBI Deduction (IRC §199A)
- Use Form 8995 to calculate your 20% deduction
- Re-evaluate business entity type (S-Corp, LLC, sole prop) to qualify fully
- Itemize with the SALT Deduction Cap Raised
If you live in a high-tax state, you may benefit more by itemizing using the new $20,000 SALT cap (joint filers).
- Use Full Child & Dependent Credits
- CTC: Up to $3,500 per child
- Child care credit & EITC may also expand
- Track dependents and daycare costs precisely
- Reassess Your Estate Plan
With potential estate exemption increases to $20 million, now is the time to:
- Gift assets tax-free using Form 709
- Review trust and legacy planning strategies
- Avoid future rollbacks by acting now
Example Strategy Case
Case: Aditya & Riya – Married, 2 Kids, LLC Business in New Jersey
- Switch from sole proprietorship to S-Corp
- Adjust W-4 to reflect higher child credits
- Prepay property taxes to itemize using higher SALT cap
- Claim QBI deduction via Form 8995
- Plan $300,000 gift to children before any exemption sunset
Projected tax savings: Over $15,000 in 2025
Step-by-Step Tax Planning Checklist
- Adjust your W-4 now for 2025 changes
- Review 2024 vs 2025 brackets to shift income/expenses
- Analyze eligibility for new credits
- Recalculate standard vs. itemized deduction
- Project your QBI deduction and track business income
- Plan lifetime gifts or trust transfers
- Schedule your CPA review early in Q4
Conclusion
Trump’s 2025 tax plan offers a rare opportunity to lock in tax savings, increase credits, and restructure your financial and business activities. Smart planning now can result in thousands saved and peace of mind come tax season.
Call to Action
Is your tax plan built for the Trump 2025 tax changes?
The earlier you start, the more flexibility you have to lower your tax burden, optimize deductions, and ensure IRS compliance.
Get your personalized tax game plan:
- Bracket and credit simulation for 2025
- QBI and SALT deduction optimization
- Gifting, estate, and trust planning
- Withholding and filing timeline management
Book a meeting with Anshul Goyal, CPA, EA, FCA
About Our CPA
Anshul Goyal, CPA, EA, FCA, is a U.S.-licensed Certified Public Accountant and Enrolled Agent with over a decade of experience in tax strategy, entity structuring, and IRS compliance. He works closely with Indian residents, U.S. families, and startups to build forward-looking tax plans.
Disclaimer
This blog is for educational purposes only. Tax law is subject to change, and each taxpayer’s situation is unique. Please consult a qualified professional before making tax decisions.