Small Business Tax Season Preparation: Key Updates for 2025

As the April 15 tax filing deadline approaches, the U.S. Chamber of Commerce advises small business owners to begin organizing financial records and exploring strategies to minimize tax liabilities. This year brings notable changes to longstanding tax provisions that may impact small businesses.

Key Tax Updates for the 2024 Tax Year:

• Section 179 Deduction: The allowance for immediate expense deductions under Section 179 has decreased to 60% for the 2024 tax year, down from 80% in 2023. This phased reduction will continue, decreasing by 20% annually until it is phased out by January 1, 2027.

  Child and Dependent Care Tax Credit (CDCTC): This credit assists in covering costs for qualified care expenses, including those for children under 13 and dependents unable to care for themselves. Eligible taxpayers can claim between 20% and 35% of care expenses, with the exact percentage depending on income levels.

The U.S. Chamber of Commerce emphasizes the importance of staying informed about these changes and consulting with tax professionals to ensure compliance and maximize potential benefits.

For more detailed information, please refer to the full blog post from the U.S. Chamber of Commerce here