As we move through 2025, the IRS has rolled out key updates that may affect how you file, plan, and save. From adjusted tax brackets to increased deductions, here’s what every taxpayer should know.
Federal Tax Bracket Adjustments
To keep up with inflation, the IRS has adjusted income thresholds for all brackets. Rates haven’t changed — but where your income falls might have:
- 10%: Up to $11,925 (single) / $23,850 (married)
- 12%: $11,926–$48,475 (single) / $23,851–$96,950 (married)
- 22%: $48,476–$103,350 (single) / $96,951–$206,700 (married)
- 24%: $103,351–$197,300 (single) / $206,701–$394,600 (married)
- 32%: $197,301–$250,525 (single) / $394,601–$501,050 (married)
- 35%: $250,526–$626,350 (single) / $501,051–$751,600 (married)
- 37%: Above $626,350 (single) / Above $751,600 (married)
Standard Deduction Increases
For the 2025 tax year, you can deduct more from your taxable income:
- Single: $15,000 (up from $14,600)
- Married Filing Jointly: $30,000 (up from $29,200)
- Head of Household: $22,500 (up from $21,900)
This change could lower your overall tax bill — even if you don’t itemize deductions.
Changes to Tax Credits and Contribution Limits
The IRS also adjusted major tax credits and account limits:
- Earned Income Tax Credit (EITC): Up to $8,046 for those with 3+ children
- 401(k) Contribution Limit: Increased to $23,500
- Health FSA Limit: Now $3,300, with up to $660 in carryover
Upcoming Tax Deadlines
April 15 may have passed, but here are the next important dates:
- June 17, 2025: 2nd quarter estimated taxes due
- Sept. 16, 2025: 3rd quarter estimated taxes due
- Oct. 15, 2025: Final deadline for those who filed a 2024 extension
Mark these on your calendar — especially if you’re self-employed or receive non-W2 income.
What You Can Do Now
- Check your withholding: Update your W-4 to reflect any changes in your income.
- Max out contributions: Especially to retirement and health savings accounts.
- Stay informed: IRS changes happen yearly. Bookmark irs.gov and check updates regularly.
Staying on top of these IRS updates helps you keep more of what you earn — and avoid surprises come tax season.
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