Tax Tips For 2025

Are you aware of the tax changes for 2025? Depending on how much you make and how you plan for the future, your taxes for 2025 may be affected. Check out the top 5 changes.

Standard Deductions

There are two types of deductions when it comes to your taxes: standard and itemized. Itemized deductions are a list of eligible, taxable expenses, such as mortgage interest, state taxes, and medical expenses. Each of these expenses require recordkeeping and additional forms. The rules for itemized deductions remain the same for 2025.

A standard deduction is a fixed amount set by the IRS. This can be subtracted from your taxable income to reduce your tax bill. For 2025, the standard deduction has increased.

  • For single taxpayers and married individuals = $15,000 (a $400 increase from last year)
  • For married couples filing jointly = $30,000 (a $800 increase from last year)
  • For heads of households = $22,500 (a $600 increase from last year)

Marginal Rates

Everyone gets taxed their “fair share” based on their income. For 2025, the new rates are:

  • 37%+ for incomes over $626,350 ($751,600 for married couple filing jointly)
  • 35% for incomes over $250,525 ($501,050 for married couples filing jointly)
  • 32% for incomes over $197,300 ($394,600 for married couples filing jointly)
  • 24% for incomes over $103,350 ($206,700 for married couples filing jointly)
  • 22% for incomes over $48,475 ($96,950 for married couples filing jointly)
  • 12% for incomes over $11,925 ($23,850 for married couples filing jointly)
  • 10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly)

Health Savings Accounts

Do you have money set aside each paycheck in a Health Savings Account (HSA)? This account reduces your overall tax bill. The more you contribute to these accounts, the more your bill is reduced – but these contributions are limited.

  • For Health Savings Accounts – the annual contribution for an individual with self-only coverage under a high deductible health plan (HDHP) will be $4,300 (or $8,550 for a family). Individuals who are at least 55 years of age can contribute an additional $1,000.

Earned Income Tax Credits

How many children do you have? If you have 3 or more under the IRS qualifying standards, you may be eligible for an earned income tax credit of up to $8,046, an increase from $7,830 in tax year 2024. There are certain procedures in place to get the maximum credit.

Adoption Credits

If you have adopted a child with special needs, the maximum credit for qualified adoption expenses has increased from 2024. Now, you can get up to $17,280, a $470 increase from last year.

These are just some of the tax rules adjusted for 2025. If you want to learn about more adjustments for 2025, visit the IRS website here.