By Austin DeMoss, Wipfli, LLP
You might have a little extra money in your bank account in 2025 due to the IRS changing the federal income tax brackets for the 2024 tax year to account for inflation, the tax brackets are shifting higher by just over 5%.
The standard deduction is also increasing to $29,200 for married couples filing together, up from $27,700 and $14,600 for single taxpayers, up from $13,850.
There are also changes to the alternative minimum tax estate tax exemption, earned income tax credit and flexible spending account limits among others. Unfortunately, these changes will not impact how you file your taxes in spring 2024, but it is something to look forward to in 2025.
If you have questions about whether you should adjust your withholdings or how these changes will affect your business, please reach out to your tax professional.
2023 Single | 2024 Single | 2023 Standard | 2024 Standard |
|---|---|---|---|
$13,850 | $14,600 | $27,700 | 29,100 |
Austin DeMoss is Senior Manager of state and local tax for ABC of Wisconsin member Wipfli, LLP. His comments are intended as general information and do not constitute any accounting or tax advice.
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