What to Expect This Tax Season: 2025 Tax Changes You Should Know

💵 Increased Standard Deductions

The IRS has raised standard deduction amounts to help reduce taxable income:

• Single filers: $15,000 (up from $14,600)

• Married filing jointly: $30,000 (up from $29,200)

• Head of household: $22,500 (up from $21,900)

These increases aim to provide relief and simplify the filing process for many taxpayers .

📊 Adjusted Tax Brackets

To account for inflation, the IRS has updated income thresholds for tax brackets. For instance, the top 37% tax rate now applies to incomes over $626,350 for single filers, up from $609,350 in 2024 .

🧾 Earned Income Tax Credit (EITC) Boost

The maximum EITC for 2025 has increased:

• Three or more children: Up to $8,046

• Two children: Up to $5,700

• One child: Up to $3,800

• No children: Up to $684

These adjustments aim to provide greater support to low- and moderate-income working families .

🏠 Child Tax Credit Phase-Out Adjustments

The phase-out thresholds for the Child Tax Credit have been raised:

• Single filers: Phase-out begins at $250,000 (up from $200,000)

• Married filing jointly: Phase-out begins at $400,000 (unchanged)

This means more families will qualify for the full credit .

🏥 Health Savings Account (HSA) and Flexible Spending Account (FSA) Limits

• HSA contribution limits: $4,300 for self-only coverage and $8,550 for family coverage

• FSA contribution limit: $3,300, with a carryover option of up to $660

🏠 Estate and Gift Tax Exclusions

• Estate tax exclusion: Increased to $13.99 million

• Annual gift tax exclusion: Increased to $19,000 per recipient

These changes provide more flexibility in estate planning.

Need Assistance Navigating These Changes?

The 2025 tax updates could affect various aspects of your filing. At SuperNOVA Tax Solutions, we’re here to help you understand and take advantage of these changes. Contact us today to schedule a consultation and ensure your tax return is accurate and optimized.