What’s New in 2025: Inflation‑Adjusted Tax Breaks (Copy)

Written By Oliver Villapando

The IRS has announced updated inflation adjustments for tax year 2025 that could benefit many taxpayers:

  • Standard deduction increases: $15,000 single (+$400), $30,000 married filing jointly (+$800), and $22,500 head of household (+$600)

  • Tax bracket thresholds rise slightly, helping to cushion against “bracket creep”

  • Earned Income Tax Credit (EITC) maxes out at $8,046 for families with 3+ children — up from $7,830

  • Other adjusted limits include: foreign earned income exclusion ($130,000), increased AMT exemptions, and boosted contributions to FSAs and MSA accounts

What this means for you: With a higher standard deduction and more favorable thresholds, taxpayers—especially those without itemized deductions—will likely owe less or get larger refunds. Small businesses and individuals can also benefit from increased fringe benefit caps. Now’s the time to review your withholding and tax‑planning strategy.

This blog was written with the help of AI.

Oliver Villapando
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