IRS Increases Standard Deduction and Alters Tax Brackets for 2025
Key Adjustments in Tax Standards
The IRS has announced that the standard deduction will see a notable increase in 2025, a move aimed at ensuring taxpayers keep more of their hard-earned money. Additionally, tax brackets are being adjusted, affecting how much citizens owe in income taxes.
Impact of Earned-Income Tax Credit
Alongside the updated tax brackets, higher limits for the earned-income tax credit and savings account contributions are set to provide relief to many. This adjustment reflects ongoing efforts to support working families.
Adoption Credit and Health Savings Account Changes
- Adoption credit limit increases
- Higher contribution limits for health savings accounts
These changes represent a proactive approach by the IRS to adapt to fiscal needs and assist taxpayers.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.