As we enter the 2025 tax season, it’s essential to stay informed about the latest changes and updates to ensure accurate and efficient tax filing. Here’s a comprehensive guide to help you navigate this year’s tax landscape:
Key Dates:
• Tax Filing Start Date: The IRS has announced that the 2025 tax season will commence on January 27, 2025.
• Tax Filing Deadline: The deadline for filing your 2024 tax returns is April 15, 2025.
Federal Income Tax Brackets for 2025:
The IRS has adjusted the federal income tax brackets for inflation. The seven tax rates remain at 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For single filers, the 37% rate applies to incomes over $626,350, while for married couples filing jointly, it applies to incomes over $751,600.
Standard Deduction:
The standard deduction amounts have increased to account for inflation:
• Single Filers: $14,600
• Married Filing Jointly: $29,200
• Head of Household: $21,900
Alternative Minimum Tax (AMT) Exemptions:
The AMT exemption amounts for 2025 are:
• Unmarried Individuals: $88,100
• Married Filing Jointly: $137,000
These exemptions begin to phase out at $626,350 for unmarried individuals and $1,252,700 for married couples filing jointly.
State Tax Changes:
Several states have implemented significant changes to their income tax rates for 2025:
• Georgia, Pennsylvania, Louisiana, and Iowa: Transitioned to a flat tax rate.
• New Hampshire: Eliminated taxes on dividend and interest income.
These changes may affect your state tax liabilities, so it’s crucial to review your state’s current tax laws.
Tax Filing Tips:
• Early Filing: Submitting your tax return early can expedite your refund, typically within 21 days.
• Direct Deposit: Opting for direct deposit can further speed up the receipt of your refund.
• Accurate Information: Ensure all personal information and income details are accurate to avoid processing delays.
• Professional Assistance: Consider consulting a tax professional, especially if you have complex tax situations or are unsure about recent changes.
Additional Considerations:
• Retirement Contributions: You can make contributions to traditional IRAs and health savings accounts up until April 15, 2025, to potentially lower your taxable income.
• Tax Credits and Deductions: Stay informed about available tax credits and deductions, such as the Earned Income Tax Credit (EITC) and education credits, to maximize your refund or reduce your tax liability.
Staying updated on these changes and preparing your documents early can help ensure a smooth and efficient tax filing experience for the 2025 season.
Need help filing this tax season? Reach out to us and let’s see how we can help you?
