Quick questions, tailored guidance
As 2025 draws to a close, here are some questions to help deliver tailored tax tips relevant to you
If you can answer “Yes” to any of the questions below, click the arrow to see your relevant tax update!
Do you have children under age 17, who have [or will have] U.S. Social Security numbers?
Child Tax Credit (CTC): Bigger Credit, Stricter ID Rules
- The total credit increases to $2,200 per child starting in 2025.
- The refundable portion (which you can receive even if you owe no US tax) will be approximately $1,700 for 2025 due to inflation adjustments.
- Children must have valid SSNs. And at least one parent (on a joint return) must also have an SSN.
- As in the past, child tax credits are phased out as the income on the tax return increases.
What to do:
→ Make sure every US child has a U.S. Social Security Number.
→ For more on the updated child tax credit, check out our blog post here.
Are you or your spouse age 65 or older (or turning 65 in 2025–2028)?
Starting in 2025, taxpayers 65 and older get an extra $6,000 deduction (each).
This higher deduction can help reduce taxable income.
As with other tax benefits, this larger deduction gets reduced if your Modified Adjusted Gross Income (MAGI) is above $75,000 (single) or $150,000 (married).
What to do:
→ Nothing to do. If you or your spouse turns 65 in 2025, you may see a larger deduction on your next tax return.
→ To see an illustration of how this higher standard deduction can come into play, see our blog post here.
Do you own a foreign company (e.g., an Israeli Ltd) or receive income from a foreign corporation you control?
Major changes are coming in 2026 for U.S. owners of foreign corporations.
- The “GILTI” tax is being replaced by “Net CFC Tested Income”.
- Crucially, the 10% exemption for tangible assets (QBAI) is repealed. This means all net income of the company will be subject to US tax testing, not just the “excess” return.
- The deduction for this income is reduced to 40%, effectively raising the tax rate.
- For Israeli company owners: Because the US effective rate is rising and the exemption is gone, even companies paying full Israeli tax might now owe a “top-up” US tax, especially if there are timing differences in income recognition.
What to do:
→ If you own a foreign business, expect higher scrutiny and potential tax liability starting in 2026. Review your company’s projected income and foreign tax credits with us.
→ Get up to date on the new rules affecting foreign company income here.
Are you open to making charitable contributions?
Starting in 2026, taxpayers who do not itemize can still deduct up to:
o $1,000 (single), or
o $2,000 (married filing jointly).
- A new rule also says your charitable giving must exceed 0.5% of your income (AGI) before itemized deductions start to count.
- This means that the first 0.5% of AGI contributed to charitable giving each year will not be deductible at all.
What to do:
→ If you itemize, consider making some 2026 charitable gifts in 2025. In 2025, there is no 0.5% AGI floor, so donations are fully deductible (subject to normal AGI limits).
→ Similarly, “bunching” charitable gifts in 2025 may give you a larger total deduction now.
→If you’re considering where to direct your charitable contributions, we invite you to explore some of the initiatives we support here.
Do you have assets valued at or above $15 million (or $30 million as a married couple)?
Beginning in 2026, the federal estate tax exemption increases to ~$15 million per person, with inflation adjustments.
- This means that fewer estates will owe U.S. estate tax under this new limit.
What to do:
→ Most families will no longer need complicated estate-tax planning. If you have an older plan, review it to ensure it still reflects your wishes under the new higher limits.
→ For more on estate planning, see our Estate Planning guide.
Do you have or may expect to have a U.S. citizen child born between 2025 and 2028?
U.S. citizen children born between 2025 and 2028 may receive a $1,000 government deposit into a special “Trump Account”.
- Parents can also add up to $5,000 per year until the child turns 18.
- For families abroad, children must have a Social Security Number (SSN) to qualify.
What to do:
→ If you expect a child between 2025–2028, make sure to get a Consular Report of Birth Abroad (CRBA) and SSN quickly to receive the $1,000 deposit.
→ Read more about these Trump Savings Accounts.
Are you a founder, early employee, or investor holding stock in a U.S. C-corporation?
For stock issued after the law is enacted, gains may now be partially or fully tax-free after 3, 4, or 5 years (instead of the prior 5-year requirement).
- The lifetime cap increases to $15M.
What to do:
→ Founders and early-stage investors may benefit from faster, larger tax-free gains if their company is structured as a U.S. C-corp.
Do you receive overtime pay?
Starting in 2025, you may be able to deduct qualified overtime pay (up to $12,500 single / $25,000 joint).
- Note: This deduction phases out if your income exceeds $150,000 ($300,000 joint).
- Important for Expats: The income limit includes any income you excluded under the Foreign Earned Income Exclusion (FEIE).
What to do:
→ Keep track of overtime hours and pay stubs clearly distinguishing this income.
Are you planning to buy a car with a loan?
Interest on car loans for vehicles bought after Dec 31, 2024, may be deductible (up to $10,000 of interest).
- Strict Requirement: The vehicle must have its “final assembly” in the United States. This will likely disqualify many vehicles purchased in Israel.
- Income limits apply (starting at $100,000 MAGI).
What to do:
→ If buying a US-made car, check the VIN to confirm US assembly if you hope to take this deduction.
Are you self-employed with US based business income?
The “Qualified Business Income” (QBI) deduction rules are being enhanced.
- The income threshold where the deduction begins to phase out is increasing to $75,000 ($150,000 joint).
What to do:
→ This is good news for moderate-income U.S.-based freelancers and small business owners, as it allows for a full 20% deduction on U.S.-sourced qualified business income for a wider range of earners.
Child Tax Credit (CTC): Bigger Credit, Stricter ID Rules
- The total credit increases to $2,200 per child starting in 2025.
- The refundable portion (which you can receive even if you owe no US tax) will be approximately $1,700 for 2025 due to inflation adjustments.
- Children must have valid SSNs. And at least one parent (on a joint return) must also have an SSN.
- As in the past, child tax credits are phased out as the income on the tax return increases.
What to do:
→ Make sure every US child has a U.S. Social Security Number.
→ For more on the updated child tax credit, check out our blog post here.
Starting in 2025, taxpayers 65 and older get an extra $6,000 deduction (each).
This higher deduction can help reduce taxable income.
As with other tax benefits, this larger deduction gets reduced if your Modified Adjusted Gross Income (MAGI) is above $75,000 (single) or $150,000 (married).
What to do:
→ Nothing to do. If you or your spouse turns 65 in 2025, you may see a larger deduction on your next tax return.
→ To see an illustration of how this higher standard deduction can come into play, see our blog post here.
Major changes are coming in 2026 for U.S. owners of foreign corporations.
- The “GILTI” tax is being replaced by “Net CFC Tested Income”.
- Crucially, the 10% exemption for tangible assets (QBAI) is repealed. This means all net income of the company will be subject to US tax testing, not just the “excess” return.
- The deduction for this income is reduced to 40%, effectively raising the tax rate.
- For Israeli company owners: Because the US effective rate is rising and the exemption is gone, even companies paying full Israeli tax might now owe a “top-up” US tax, especially if there are timing differences in income recognition.
What to do:
→ If you own a foreign business, expect higher scrutiny and potential tax liability starting in 2026. Review your company’s projected income and foreign tax credits with us.
→ Get up to date on the new rules affecting foreign company income here.
Starting in 2026, taxpayers who do not itemize can still deduct up to:
o $1,000 (single), or
o $2,000 (married filing jointly).
- A new rule also says your charitable giving must exceed 0.5% of your income (AGI) before itemized deductions start to count.
- This means that the first 0.5% of AGI contributed to charitable giving each year will not be deductible at all.
What to do:
→ If you itemize, consider making some 2026 charitable gifts in 2025. In 2025, there is no 0.5% AGI floor, so donations are fully deductible (subject to normal AGI limits).
→ Similarly, “bunching” charitable gifts in 2025 may give you a larger total deduction now.
→If you’re considering where to direct your charitable contributions, we invite you to explore some of the initiatives we support here.
Beginning in 2026, the federal estate tax exemption increases to ~$15 million per person, with inflation adjustments.
- This means that fewer estates will owe U.S. estate tax under this new limit.
What to do:
→ Most families will no longer need complicated estate-tax planning. If you have an older plan, review it to ensure it still reflects your wishes under the new higher limits.
→ For more on estate planning, see our Estate Planning guide.
U.S. citizen children born between 2025 and 2028 may receive a $1,000 government deposit into a special “Trump Account”.
- Parents can also add up to $5,000 per year until the child turns 18.
- For families abroad, children must have a Social Security Number (SSN) to qualify.
What to do:
→ If you expect a child between 2025–2028, make sure to get a Consular Report of Birth Abroad (CRBA) and SSN quickly to receive the $1,000 deposit.
→ Read more about these Trump Savings Accounts.
The Qualified Small Business Stock (QSBS) tax benefits could now offer faster and larger tax-free gains for stock issued after the new law is enacted.
- Faster Tax-Free Gains: Gains from QSBS may now be partially or fully tax-free after holding for 3, 4, or 5 years, instead of the previous requirement of holding for 5 full years.
- Increased Lifetime Cap: The lifetime exclusion for QSBS gains has increased to $15 million, allowing for a larger amount of tax-free gains.
What to do:
→ Founders and early-stage investors may benefit from faster, larger tax-free gains if their company is structured as a U.S. C-corp. Be sure to understand how the updated rules could apply to your stock.
Do you have children under age 17, who have [or will have] U.S. Social Security numbers?
Are you or your spouse age 65 or older (or turning 65 in 2025–2028)?
Do you own a foreign company (e.g., an Israeli Ltd) or receive income from a foreign corporation you control?
Are you open to making charitable contributions?
- A new rule also says your charitable giving must exceed 0.5% of your income (AGI) before itemized deductions start to count.
- This means that the first 0.5% of AGI contributed to charitable giving each year will not be deductible at all.