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IRS issues advice for 2025 tax season

IRS issues advice for 2025 tax season
IRS issues advice for 2025 tax season
5:18

As the end of the year approaches, the IRS advises taxpayers to take early steps to prepare for the 2025 tax filing season. This advice is part of the agency's "Get Ready" campaign.

The IRS has a suite of online tools designed to help people efficiently complete their obligations, a key component to helping them prepare early and ensure their returns are accurate.

 

Tax inflation adjustments for the tax year 2025

Revenue Procedure 2024-40 provides detailed information about adjustments and changes to more than 60 tax provisions that will affect taxpayers when they file their returns in 2026.

The adjustments for the 2025 tax year apply to income tax returns that will be filed starting in the 2026 tax season. Key dollar amounts for tax year 2025 that will interest many taxpayers include the following:

  • For single taxpayers and married individuals filing separately for the tax year 2025, the standard deduction rises to $15,000 for 2025, an increase of $400 from 2024. For married couples filing jointly, the standard deduction rises to $30,000, an increase of $800 from tax year 2024. For heads of households, the standard deduction will be $22,500 for the tax year 2025, an increase of $600 from the amount for tax year 2024.
  • For tax year 2025, the top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The other rates are:
    • 35% for incomes over $250,525 ($501,050 for married couples filing jointly).
    • 32% for incomes over $197,300 ($394,600 for married couples filing jointly).
    • 24% for incomes over $103,350 ($206,700 for married couples filing jointly).
    • 22% for incomes over $48,475 ($96,950 for married couples filing jointly).
    • 12% for incomes over $11,925 ($23,850 for married couples filing jointly).
    • 10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly).
  • For qualifying taxpayers who have three or more qualifying children, the tax year 2025 maximum Earned Income Tax Credit amount is $8,046, an increase from $7,830 for the tax year 2024. The revenue procedure contains a table providing the maximum EITC amount for other categories, income thresholds, and phase-outs.
  •  For the tax year 2025, the monthly limitation for the qualified transportation fringe benefit and the monthly limitation for qualified parking rises to $325, increasing from $315 in tax year 2024.
  • For tax year 2025, participants who have self-only coverage in the plan must have an annual deductible that is not less than $2,850 (a $50 increase from the previous tax year), but not more than $4,300 (an increase of $150 from the previous tax year). 
  • For the taxable years beginning in 2025, the dollar limitation for employee salary reductions for contributions to health flexible spending arrangements rises to $3,300, increasing from $3,200 in tax year 2024. For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount rises to $660, increasing from $640 in tax year 2024.
  • For tax year 2025, the foreign earned income exclusion increases to $130,000, from $126,500 in the tax year 2024.
  • Estates of decedents who die during 2025 have a basic exclusion amount of $13,990,000, increased from $13,610,000 for estates of decedents who died in 2024.
  • For tax year 2025, the maximum credit allowed for an adoption of a child with special needs is the amount of qualified adoption expenses up to $17,280, increased from $16,810 for tax year 2024.


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With offices in Miami, Coral Gables, Aventura, and Fort Lauderdale, our CPAs are readily available to assist you with all your income tax planning and tax preparation needs. To learn more about our accounting firm services take a look at our individual tax servicesbusiness tax servicesinternational tax servicesexpatriate tax servicesSAP Business Oneentity managementhuman capital, and audit and assurance services.  

 

 

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