The IRS has announced new federal income tax brackets and standard deductions for 2025, with the top tax rate of 37% applying to individuals with taxable income above $626,350 and married couples filing jointly earning $751,600 or more. The agency also raised thresholds for other provisions such as capital gains brackets, estate and gift tax exemption, and eligibility for the child tax credit. After 2025, lower taxes enacted by former President Donald Trump will expire, reverting tax brackets to 2017 levels if Congress does not take action. The standard deduction will increase to $30,000 for married couples filing jointly and $15,000 for single filers in 2025, up from $29,200 and $14,600 respectively in 2024. Trump’s tax cuts also included higher standard deductions which may expire after 2025 if not extended by Congress. Overall, these changes will impact how much taxpayers owe on each part of their income, with adjustments made for various income levels and filing statuses. It is important for taxpayers to stay informed about these changes to effectively manage their financial responsibilities.
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IRS Reveals Updated Federal Income Tax Brackets for 2025
