The IRS has announced that the citizens of the United States will see changes in everything related to the Tax Return. Not having these changes in mind can be a very negative thing, since it directly affects the income and taxes they have to pay on an annual basis.
In this case, we can take a look at the list of changes to have clearer ideas. It is essential to know which are those 5 important changes, since if we do not consider them at the time of making our Tax Return.
Be that as it may, it is worth noting that in most occasions this will mean a reduction in the taxes we will pay, since the Tax Brackets increase and that means that we will be able to earn more money without having to pay more taxes in a mandatory way.
IRS Tax Return Changes in 2025
These changes will not be for all Americans 100%, but a great part of them will see these changes directly in their Tax Return in 2025. If you are preparing your documentation, pay attention to all this.
So, the IRS Tax return changes for 2025 are:
Increases in standard deductions:
- Single filers: $15,000 (+$400).
- Married couples: $30,000 (+$800).
- Heads of household: $22,500 (+$600).
Adjustments in tax brackets:
- Increase in income thresholds to reflect inflation.
- Maximum rate of 37% applies to income over $626,350 (singles) and $751,600 (married couples).
Changes to the attorney tax credits:
- Increase in maximum Earned Income Tax Credit (EITC) amounts.
- 401(k) plan contribution limits increase $500, with additional contributions of up to $11,250 for individuals age 60 to 63.
Adjustments to the Alternative Minimum Tax (AMT):
- New exemption thresholds: $88,100 (singles) and $137,000 (married couples).
State and Local Tax (SALT) Deductions:
- The $10,000 limit on these deductions remains unchanged.
In case we have any doubts about this, we can always contact an advisor in order to complete the IRS Tax Return without any problems. But we must always keep in mind all these changes for the year 2025.