01/19/2025
Here are some key changes for the 2025 tax season:
Looking forward to hearing from you soon!! Stay Warm!!
Standard Deductions:
Single taxpayers and married individuals filing separately: $15,000 (up $400 from 2024).
Married couples filing jointly: $30,000 (up $800 from 2024).
Heads of households: $22,500 (up $600 from 2024).
Tax Brackets:
The top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly).
Other rates: 35%, 32%, 24%, 22%, 12%, and 10%, with adjusted income thresholds.
Earned Income Tax Credit (EITC):
Maximum EITC amount for taxpayers with three or more qualifying children: $8,046 (up from $7,830 in 2024).
Qualified Transportation Fringe Benefit:
Monthly limitation for qualified transportation fringe benefit and qualified parking: $325 (up from $315 in 2024).
Health Flexible Spending Arrangements (FSAs):
Maximum carryover amount: $660 (up from $640 in 2024).
Tax Filing Dates:
The IRS will start accepting tax returns on January 27, 2025.
The deadline to file taxes is April 15, 2025.
New Form 1099-K:
Taxpayers who received more than $5,000 through online marketplaces or payment apps will receive a new form called the 1099-K.
These changes are designed to keep pace with inflation and provide some adjustments to various tax provisions. If you have any specific questions or need more details, feel free to ask! 😊
