The IRS just announced it is adjusting for inflation by raising the federal income threshold for each Tax Bracket, and increasing the standard deductions for single and married filers. This translates to owing slightly LESS in taxes if your 2025 income is unchanged from 2024. The thresholds for long-term capital gain brackets, and estate/gift tax exemptions also rose.
Highlights: Standard deductions increased - Single $15,000 Married Filing Jointly $30,000 Annual gift exclusion increased- From $18,000 to $19,000 per person Long term cap gains - still 0% for Single filers with taxable income up to $48,350 and Married filing jointly $96,700. Estate Gift tax exemption - rose from 13.61 million to $13.99 million
It is also important to remember that after 2025, The Tax Cuts and Jobs Act is set to sunset without action from Congress.
As always, chat with your financial advisor and coordinate with your CPA for your specific tax advice.
