Richard Lane Hudson of U.S. Rep. Richard Hudson (R-Southern Pines) said Jan. 27 that Hudson listed several tax provisions available to North Carolina residents for their 2025 filings.
The topic is significant as it highlights new and expanded tax benefits that could affect many North Carolinians’ finances in the upcoming filing season. The post connects these benefits directly to House Republican bills that extend relief through 2028, with phase-outs for higher earners, allowing families to keep more of their earnings, according to a post by Hudson.
Hudson said, “If you qualify and want to start long-term savings for your child, look for the option to set up a Trump Account on your return. The Child Tax Credit is larger, so make sure you claim it. If you earned tips or overtime pay in 2025, that income is now tax free. Many Americans earning $50,000 to $80,000 a year will see about a 15% tax cut.” North Carolina maintains a flat individual income tax rate of 4.25 percent, as detailed by the Tax Foundation. The state processes around 2.9 million individual returns each year, with an average adjusted gross income near $70,000. This positions North Carolina in the mid-range for overall state tax burdens among U.S. jurisdictions.
The Child Tax Credit for 2025 offers up to $2,200 per qualifying child, according to the Internal Revenue Service. Filers with low tax liability may access the Additional Child Tax Credit for a refundable amount up to $1,700 per child. Eligibility includes children under 17 who are U.S. citizens or residents, with phaseouts starting at $200,000 for single filers and $400,000 for joint returns.
The no-tax-on-tips provision allows deductions for qualified tips in occupations like service and gig work, per Internal Revenue Service guidance. For overtime pay in 2025 filings, individuals can deduct up to $12,500 in premium pay above base rates or $25,000 for joint filers; these temporary deductions are effective through 2028 and phase out beginning at $150,000 modified adjusted gross income.
Hudson has served in the U.S. Congress representing North Carolina’s 9th District since replacing Larry Kissell in 2013 and currently lives in Southern Pines.
