What are the latest IRS tax changes for 2025

[deepak]

I’m trying to get up to speed on the latest IRS tax changes for 2025. Has anyone here seen the updated tax brackets, standard deductions, or any new rules for credits and deductions? I want to make sure I’m planning correctly before filing.

 

[BlissCore]

The 2025 update of tax brackets and minor increase of standard deduction are developed because of inflation by the IRS. There are minor changes on some credits such as the child tax credit and education credits. Before filing, it is always good to visit the IRS site or a good source of tax and get the correct figures in order to file.

 

[Mayank]

In 2025, the IRS introduced several tax changes:

• Standard Deductions: Increased to $15,000 (single), $30,000 (married), and $22,500 (head of household).
• Tax Brackets: Remained at 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
• Child Tax Credit: Raised to $2,200 per child.
• Catch-Up Contributions: High earners must contribute to Roth 401(k)s.
• No Tax on Tips: Eligible workers can exclude up to $25,000 in tip income.
• Paper Checks: Phased out for refunds; electronic payments encouraged.
• Senior Deduction: Additional $6,000 deduction for those 65+.

These adjustments aim to simplify the tax system and provide relief to specific taxpayer groups.

 

[Sophie]

In 2025, longer TCJA tax rates, increased standard deductions, new deductions (overtime pay, tips, auto loan interest), raised SALT cap, inflation-adjusted brackets, AMT relief, paper refund phaseout, and revised mileage rates are some of the changes in the tax rules that make it more flexible and more taxpayer friendly.