As 2025 comes to a close, major tax law changes are affecting how people plan their finances. One big update is the expansion of the SALT (state and local tax) deduction, which may lead more people to itemize their deductions instead of taking the standard deduction. Although the 2017 tax brackets and standard deductions are now permanent, other changes—like new income rules and bigger deductions for seniors—mean that taxpayers need to think carefully about how much money they earn and report. There’s also a higher transfer-tax exemption, encouraging some families to give financial gifts or make estate planning moves before the year ends. These changes come during a time of economic uncertainty and political tension, making smart tax planning even more important.

The Trump administration has restarted a major student loan forgiveness program for people who have been paying their federal loans for 20 or 25 years under the Income-Based Repayment (IBR) plan. This move comes after a pause in loan forgiveness that began in July. Millions of borrowers, many of them in their 40s or older, are now being told they can have their remaining loan balances wiped out. However, there’s a catch—because the forgiven amount may count as taxable income, borrowers need to decide by October 21, 2025, if they want to opt out. This decision is especially important as the tax deadline gets closer.