As we step into a fresh new year, Americans are faced with a new array of tax deadlines that demand their attention. Each year, the Internal Revenue Service (IRS) revises its tax guidelines. This annual update can lead to noticeable differences in the amount of money Americans see in their returns or the deadlines they need to meet.
During Congress’s recent efforts to avert a government shutdown, the IRS experienced a significant budget cut, losing out on $80 billion that was anticipated from the Inflation Reduction Act. This financial shortfall, combined with updated tax tiers and deduction guidelines, might considerably affect the tax amounts for many Americans.
Important Dates for the 2025 Tax Season
In just a few days, Americans will find out the exact date when the IRS will start accepting tax returns. Being aware of this date allows taxpayers to get a head start on the filing process. The tax return forms will be released in late January. This will mark the beginning of the filing season, enabling Americans to submit their taxes promptly.
As we look ahead to the 2025 tax season, there are a few key updates and changes that Americans should be aware of. While in 2024, tax returns became available on January 29, this year, you can expect to access the new forms a bit earlier, on January 27.
Mark your calendars for an extra deadline: Though Tax Day falls on April 15, you have the flexibility to file your taxes before this deadline. This allows you to get a head start on your financial planning and ensure everything is in order well in advance.
What Are the New IRS Rules for 2025?
The 2025 IRS regulations retain the seven familiar income brackets, which are set at 10%, 12%, 22%, 24%, 32%, 35%, and 37%. However, it’s crucial to note the income thresholds for each bracket to understand where you fit in.
Marginal Tax Rates for 2025
Here’s a breakdown of the marginal rates for the 2025 tax year:
- 37% for incomes over $626,350
- 35% for incomes over $250,525 ($501,050 for married couples filing jointly)
- 32% for incomes over $197,300 ($394,600 for married couples filing jointly)
- 24% for incomes over $103,350 ($206,700 for married couples filing jointly)
- 22% for incomes over $48,475 ($96,950 for married couples filing jointly)
- 12% for incomes over $11,925 ($23,850 for married couples filing jointly)
- 10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly)
Changes in Standard Deductions for 2025
Looking to 2026, for the 2025 tax year, the standard deduction is set to increase. Single filers will enjoy a $400 boost, bringing the deduction to $15,000. Meanwhile, married couples filing jointly will see an increase of $800, setting their standard deduction at $30,000.
The standard deduction is a crucial element of the tax system, allowing you to reduce the amount of your taxable income by excluding a particular portion of your earnings from taxation.
In a recent discussion with news media, Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, offered some insights: “The exact date the IRS will start accepting returns will be announced soon, typically falling on the last or next-to-last Monday of January. Last year, this date was January 29. This year, there are significant changes to consider, including an increase in the standard deduction to account for inflation and a decrease in the threshold for payments received through third-party processors for sales of goods and services.”
Taxpayers are reminded that they have until April 15 to file their returns unless they have been granted an extension. It’s crucial to note that while an extension may give you more time to file, it does not extend the time to pay any owed taxes. As a result, any outstanding balances will incur fees and penalties.
