How 2025 Tax Changes Compare To This Year | Global News Avenue

You may have just started thinking about your 2024 taxes, which are due next April, but the IRS has announced changes for the 2025 tax year that will affect how you file your taxes in 2026.

Here’s how the changes for 2025 compare to current rules.

How tax brackets and standard deductions will change

To keep pace with inflation, IRS increases tax amounts standard deduction, alternative minimum tax (AMT), and income tax creditas well as several other projects.

In 2025, the standard deduction will increase by $400 to $15,000 for single filers and married couples filing separately, and by $30,000 for married couples filing jointly. The AMT exemption threshold will increase from $85,700 to $88,100 for unmarried filers and by $3,700 to $137,000 for married taxpayers. The earned income tax credit will also increase by $216.

Tax brackets have also been adjusted Therefore, taxpayers pay the same proportion of their income regardless of changes in inflation. Unless you get a 2.8% pay raise next year, your income won’t be taxed at a higher rate.

Some people can contribute more to retirement plans next year

Personally possess 401(k) Since the contribution limit has been increased, accounts will be able to contribute an additional $500 to their retirement plan, subject to limits Individual Retirement Account (IRA) remain unchanged.

this catch up contribution The limits that allow individuals over age 50 to make larger additional contributions to their retirement accounts remain unchanged. However, starting in 2025, individuals aged 60 to 63 can contribute up to $11,250, which is $3,750 more than other catch-up caps.