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The 2025 tax brackets and other significant tax adjustments announced by the IRS are as follows:
Standard Deduction:
- $30,000 for married couples filing jointly
- $15,000 for single filers
- $22,500 for head of household
More changes:
- For individuals with three or more eligible children, the maximum Earned Income Tax Credit will
increase to $8,046. - Foreign earned income exclusion rise to $130,000.
- Annual gift tax exclusion increase to $19,000.
Reminder:
- The tax revisions were made public by the IRS on Tuesday, October 22, 2024.
- The income tax year 2025 will be impacted by the data presented above.
- To ensure an income tax refund, please make the right tax election claims on your W4 within 1-2 cycles in the 2025 New Year.
- Don’t forget to check out your favorite where’s my refund website, irs.gov, for additional
information on tax brackets, withholding certificates (Form W4), and the 2025 adjusted tax revisions.
