Key 2025 Tax Changes for Families: What Changed and How to Prepare

As we kick off 2026, many families in West Virginia, Ohio, and across the country are still processing the major tax changes that took effect for the 2025 tax year. At Cowdery Tax and Business Solutions, we’re excited to help you navigate these updates so you can maximize your refund and minimize stress when filing by April 15, 2026.

The most significant development came from the One Big Beautiful Bill Act (signed into law on July 4, 2025), which made many provisions from the 2017 Tax Cuts and Jobs Act (TCJA) permanent while introducing targeted enhancements for families. These tax changes affect everything from the Child Tax Credit to standard deductions and more. In this post, we’ll break down the biggest updates for individuals and families, explain what they mean for you, and share practical steps to get ready.

3 Important Tax Changes for the 2025 Tax Season

1) Tax Changes mean Child Tax Credit Gets a Boost
— Here’s What You Need to Know

One of the most family-friendly tax changes in 2025 is the increase in the Child Tax Credit (CTC). Under the new law, the maximum CTC rose from $2,000 per qualifying child to $2,200 per qualifying child under age 17. This higher amount applies to your 2025 tax return (filed in 2026) and will be adjusted for inflation starting in future years.

To qualify for the full credit:

• Your child must be a U.S. citizen, national, or resident alien with a valid Social Security Number (SSN).
• The child must live with you for more than half the year.
• Both the taxpayer (and spouse, if filing jointly) must have a work-eligible SSN.
• Phase-outs begin at $200,000 of modified adjusted gross income ($400,000 for married filing jointly), reducing the credit gradually.

The refundable portion (Additional Child Tax Credit) remains at up to $1,700 per child in 2025 (adjusted for inflation), meaning families with little or no tax liability can still receive a refund check for part of the credit.

Real-World Example:

A married couple in Columbus, OH, with two children under 17 and $120,000 in income could claim $4,400 in CTC (2 × $2,200), potentially reducing their tax bill or increasing their refund by that amount compared to prior years.

This change, made permanent by the new law, prevents the credit from dropping back to $1,000 (as originally scheduled post-TCJA expiration). It’s a meaningful win for middle-income families, though low-income households earning under ~$26,000 may see limited additional benefit due to refundability rules.

2) Tax Changes for Standard Deduction and Other Family-Friendly Adjustments

The standard deduction — the amount you can subtract from income before calculating taxes — saw inflation adjustments plus enhancements from the new legislation.

For 2025:

• Single filers: Approximately $15,750 (up from previous years).
• Married filing jointly: Around $31,500.
• Head of household: About $23,625.

These higher amounts simplify filing for millions who don’t itemize, effectively lowering taxable income and taxes owed. The law also preserved the elimination of personal exemptions (replaced by the higher standard deduction and CTC) and kept other TCJA features like lower individual tax brackets permanent.

For families with dependents who don’t qualify for the full CTC (e.g., older children or relatives), the $500 Other Dependent Credit was made permanent — another stable benefit for multi-generational households.

3) New Opportunities: Trump Accounts and Related Family Provisions

The One Big Beautiful Bill introduced Trump Accounts (child savings accounts) for children born between 2025 and 2028. The federal government provides a one-time $1,000 contribution for eligible U.S. citizen newborns, with families able to add more over time. Funds can be used tax-advantaged for education, starting a business, or a first home after age 18. While not directly affecting 2025 filings, this is an exciting long-term planning tool for young families.

Additionally, the law expanded some adoption-related benefits and preserved credits for child and dependent care, making family support more accessible.

Practical Steps to Prepare for Your 2025 Tax Filing

With these updates in place, now is the perfect time to get organized:

• Gather Your Documents Early
  • Collect W-2s,
  • 1099s,
  • child care receipts,
  • records of any dependent-related expenses.
• Verify all SSNs for children and parents to avoid CTC denials.
• Review Your Withholdings
• Use the IRS Tax Withholding Estimator to check if your 2025 paychecks were adjusted properly for the higher CTC and standard deduction.

If you over-withheld, you could see a larger refund; if under-withheld, plan for estimated payments.

Consider Family-Specific Strategies

• Maximize contributions to retirement accounts (limits increased for 2025/2026).
• Track qualifying child care expenses for the Child and Dependent Care Credit.
• If expecting a new baby in early 2026, note potential Trump Account eligibility.

Watch for State Impacts
While federal changes dominate, West Virginia and Ohio may have ripple effects on state returns (e.g., conformity to federal deductions). Our team can help align both.

Why Partner with Cowdery Tax and Business Solutions?

Tax law changes like these can feel overwhelming, especially with new SSN requirements and family credits at stake. At Cowdery Tax and Business Solutions, we stay ahead of federal and state updates to ensure families in WV, OH, and beyond claim every benefit they’re entitled to.

Whether you’re a busy parent maximizing the $2,200 CTC or a household adjusting to permanent TCJA rules, we’re here to make filing simple and stress-free. Schedule your free 2025 tax review today — let’s turn these updates into real savings for your family!

Contact us at cowderytax.com or call our Marietta office.

This information is not intended as legal or tax advice. Cowdery Tax and its representatives does not offer legal or tax advice. We offer services for business bookkeeping, payroll, tax payments, and personal tax filings. We share information that is publicly available. Tax laws may change with or without notice that may alter or change the information contained in this publication.