The Internal Revenue Service (IRS) has provided tax assistance for people and businesses affected by natural disasters in many states. Residents in areas such as Texas, Louisiana, and Kentucky now have longer deadlines to file taxes and pay. This article contains a full guide on eligibility, relief measures, and filing procedures for those who qualify.
Standard deductions
The standard deduction for married individuals and single taxpayers filing separately will rise to $15,000, an increase of $400 from 2024. The deduction will increase by $800 to $30,000 for married couples filing jointly. The deduction for heads of households will be $22,500, which is $600 more than it was the year before.
What are the tax brackets for 2025?
| Single filers’ tax brackets | Married filing jointly tax brackets | |
| 10% | $0-$11,925 | $0-$23,850 |
| 12% | $11,926-$48,475 | $23,841-$95,950 |
| 22% | $48,476-$103,350 | $96,951-$206,70 |
| 24% | $103,351-$197,300 | $206,701-$394,600 |
| 32% | $197,301-$250,525 | $394,601-$501,050 |
| 35% | $250,526-$626,350 | $501,051-751,600 |
| 37% | $626,351 and up | $751,601 and up |
Foreign earned income exclusion
- Credits for estate taxes- In 2025, the estate basic exclusion will increase to $13,990,000.
- Exclusion of gifts – Additionally, the yearly exclusion for gifts will rise from $18,000 in 2024 to $19,000 in 2025’s calendar year.
- Credits for estate taxes – In 2025, the estate basic exclusion will increase to $13,990,000. Exclusion of gifts Additionally, the yearly exclusion for gifts will rise from $18,000 in 2024 to $19,000 in 2025’s calendar year.
- Credits for adoption – In 2025, the maximum permitted credit for adoption costs associated with special needs will be $17,280, up from $16,810 in 2024.
The declaration on Tuesday pertains to the final year of the tax brackets established by the Tax Cuts and Jobs Act of 2017. The 2026 marginal tax rates, which include a top marginal tax rate of 39.6 percent, will return to their previous levels if Congress does nothing. If he wins reelection, former President Donald Trump has promised to continue the expensive tax cuts that were a hallmark of his first time in office. While pledging not to increase taxes on households earning less than $400,000 annually, Vice President Kamala Harris has stated that she would allow some of the tax cuts to expire.
