EVERY year, the IRS adjusts a range of tax provisions-from the standard deduction to the maximum contribution you can make to tax-advantaged retirement plans to account for inflation.
Here are the changes that could affect your 2025 tax bill.
Tax brackets. The IRS adjusts tax brackets annually to avoid what's known as "bracket creep," which occurs when inflation pushes taxpayers into higher tax brackets, even though their real income hasn't increased.
For 2025, the inflation adjustment means you can earn more without moving into a higher tax bracket. It's important to remember that income tax rates are marginal, which means the top rate for your tax bracket doesn't apply to all of your income. (See the box below for a breakdown of the 2025 tax brackets.)
Standard deduction. In 2025, the standard deduction for married couples who file jointly will be $30,000. For single taxpayers and married couples who file separately, the standard deduction will be $15,000; for heads of household, $22,500.
The tax code provides an additional deduction for seniors 65 and older. In 2025, it will be $2,000 for single filers and $1,600 for each joint filer who is 65 or older.
Esta historia es de la edición January 2025 de Kiplinger's Personal Finance.
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Esta historia es de la edición January 2025 de Kiplinger's Personal Finance.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
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