The Internal Revenue Service (IRS) has announced updated tax brackets for the 2024-2025 tax year, which will take effect in January 2025. The changes reflect inflation adjustments, designed to benefit taxpayers. The new marginal tax rates maintain the existing rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%, but the income thresholds for each bracket have been altered. For example, single filers will face a 10% tax on income up to $11,100, while the 12% bracket will apply to income between $11,101 and $45,000. Additionally, joint filers will see a marginal tax rate of 10% applied to income up to $22,200. The IRS aims to minimize the tax burden on middle-income earners during this period of economic uncertainty. Moreover, the deadline for filing taxes in 2025 is set for April 15, 2025, although the IRS has outlined that returns can be submitted as early as January 20, 2025. Officials encourage taxpayers to prepare early to avoid last-minute complications, especially with potential changes in tax regulations. Taxpayers may also benefit from increased standard deductions, projected at $15,600 for single filers and $31,200 for those married filing jointly. This update is designed to help taxpayers better manage their finances amid rising living costs. The IRS urges taxpayers to review any changes to credits and deductions that might affect their overall tax liability for the upcoming year.
New Tax Brackets and Filing Dates for 2024-2025 Announced
