Our tax code offers opportunities to save but also contains traps that can lead to an unexpected bill. Small changes in your income, investments, or personal circumstances can trigger tax consequences you may not see coming. Here are some of the most common surprises:
Deducting home office expenses now may mean a tax bill later. When you sell your home you’ve been living in, a portion of the profit related to your office space may be taxable, even if you qualify for the home sale exclusion.
Many tax breaks for children disappear as they grow, including the Child Tax Credit. If your child turns 17 in 2025, you can’t claim the credit when filing your 2025 return in 2026—a potential $2,200 surprise.
Investment losses can offset gains, but if you have no gains to match, you can only deduct up to $3,000 of losses each year. The rest carries forward, which could delay your full tax benefit.
Using last year’s return to plan this year’s taxes isn’t enough. Life changes such as a raise, move, or new job, can alter your tax situation.
Schedule a tax planning session today to avoid these common surprises on your 2025 return.
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