IRS unveils new income tax brackets and deductions for 2025

[Karah]

THE IRS ANNOUNCED MAJOR CHANGES TO THE TAX CODE FOR 2025, WITH ADJUSTMENTS AIMED AT HELPING TAXPAYERS KEEP MORE MONEY. THESE UPDATES, DRIVEN BY INFLATION, INCLUDE NEW INCOME TAX BRACKETS, HIGHER STANDARD DEDUCTIONS, AND CHANGES TO CAPITAL GAINS TAX RATES.

IN 2025, THE TOP INCOME TAX RATE OF 37-PERCENT WILL APPLY TO SINGLE FILERS EARNING OVER 626-THOUSAND DOLLARS… AND MARRIED COUPLES FILING JOINTLY WHO MAKE MORE THAN 751-THOUSAND. MEANWHILE, THE LOWEST TAX RATE OF 10-PERCENT WILL APPLY TO INCOME UNDER 12-THOUSAND FOR INDIVIDUALS OR UNDER 24-THOUSAND FOR MARRIED COUPLES.

IN ADDITION, THE STANDARD DEDUCTION WILL RISE FOR ALL TAXPAYERS. SINGLE FILERS CAN NOW CLAIM A 15-THOUSAND DOLLAR DEDUCTION, UP 400 DOLLARS FROM THIS YEAR. MARRIED COUPLES FILING JOINTLY WILL SEE THEIR DEDUCTION INCREASE BY 800, TO 30-THOUSAND DOLLARS, WHILE HEADS OF HOUSEHOLDS CAN DEDUCT MORE THAN 22-THOUSAND..

FOR THOSE WITH INVESTMENTS, THE IRS ALSO MADE ADJUSTMENTS TO CAPITAL GAINS TAX BRACKETS. IN 2025, SINGLE FILERS WITH TAXABLE INCOME UP TO 48-THOUSAND, AND MARRIED COUPLES WITH INCOME UP TO 97-THOUSAND, WILL STILL QUALIFY FOR THE 0-PERCENT LONG-TERM CAPITAL GAINS RATE.

FINALLY, THE EARNED INCOME TAX CREDIT WILL ALSO SEE A BOOST. THE MAXIMUM AMOUNT WILL INCREASE TO MORE THAN 8-THOUSAND FOR TAXPAYERS WITH THREE OR MORE CHILDREN.

THESE CHANGES WON’T AFFECT YOUR TAXES UNTIL YOU FILE IN 2026, BUT THE ADJUSTMENTS SHOULD HELP MANY AMERICANS AS THEY NAVIGATE THE RISING COSTS OF LIVING.

FOR MORE UNBIASED UPDATES AND STRAIGHT FACTS… DOWNLOAD THE STRAIGHT ARROW NEWS APP OR VISIT SAN DOT COM.

FOR STRAIGHT ARROW NEWS… I’M KARAH RUCKER.