The IRS has announced the annual inflation adjustments for federal tax provisions for tax year 2025. Below are some key adjustments:
Standard Deduction
- Single and Married Filing Separately: $15,000
- Married Filing Jointly or Surviving Spouse: $30,000
- Head of Household: $22,500
Additional Standard Deduction
- Aged or Blind: $1,600
- Aged or Blind (Unmarried and Not a Surviving Spouse): $2,000
Earned Income Tax Credit (EITC) Maximum Amounts
- Three or More Children: $8,046
- Two Children: $7,152
- One Child: $4,320
- No Children: $649
Other Key Adjustments
- Refundable Portion of Child Tax Credit: Remains at $1,700
- Investment Income Limit for EITC: Increased to $11,950
- Annual Gift Exclusion: Increased to $19,000
Marginal Tax Rates for Single Filers
- 37% for income over $626,350 (over $751,600 for Married Filing Jointly)
- 35% for income over $250,525 (over $501,050 for Married Filing Jointly)
- 32% for income over $197,300 (over $394,600 for Married Filing Jointly)
- 24% for income over $103,350 (over $206,700 for Married Filing Jointly)
- 22% for income over $48,475 (over $96,950 for Married Filing Jointly)
- 12% for income over $11,925 (over $23,850 for Married Filing Jointly)
- 10% for income of $11,925 or less ($23,850 or less for Married Filing Jointly)
For a complete list of the 2025 inflation adjustments and further details, refer to:
- IRS Revenue Procedure 2024-40
- IRS News Release IR-2024-273: IRS Releases Tax Inflation Adjustments for Tax Year 2025
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