What to Expect This Tax Season: 2025 Tax Changes You Should Know
As you prepare to file your 2024 taxes in early 2025, it’s important to stay on top of the latest IRS updates. Whether you’re a salaried employee, freelancer, or investor, here are some key changes that could affect your return this year.
📈 Higher Standard Deductions
To keep up with inflation, the IRS has raised the standard deduction to:
$14,600 for single filers
$29,200 for married couples filing jointly
This means more taxpayers may skip itemizing—and still get a bigger break!
💼 Income Tax Brackets Adjusted
While the tax rates haven’t changed, the income ranges have been adjusted for inflation. That could mean a slightly lower tax bill if your income stayed steady.
💰 Increased Contribution Limits
Planning for retirement? Contribution limits are up:
401(k): Up to $23,000 (+$7,500 catch-up if 50+)
IRA/Roth IRA: Up to $7,000 (+$1,000 catch-up if 50+)
Good news for savers! 📈
👨👩👧👦 Child Tax Credit (Still Pending Changes)
Congress has debated expanding the Child Tax Credit, but no final update yet. As of now, it remains at $2,000 per child, with up to $1,600 refundable—keep an eye out for last-minute updates!
Crypto & Digital Asset Reporting
Starting this season, expect stricter IRS enforcement on crypto income. Many platforms will begin issuing 1099 forms, and you’re expected to report gains, losses, and transfers.
📅 Filing Deadlines
Tax Day in 2025 is Tuesday, April 15
Need more time? File for an automatic 6-month extension (but pay what you owe by April 15 to avoid penalties)
✅ Final Tip: With changing rules, credits, and deductions, it’s wise to use reputable tax software—or speak with a professional—especially if you had any major life or income changes.