Are there any new federal tax laws for 2025?
Congress has not yet passed major tax laws for 2025. However, certain parts of the Tax Cuts and Jobs Act (TCJA) are set to expire on December 31, 2025 unless Congress acts. This means that without further legislation, U.S. taxpayers could face higher tax rates, lower standard deduction amounts, a decreased child tax credit, and other changes that would result in higher tax bills for many people.
As discussed more fully below, standard deductions and tax brackets are expected to rise for the 2025 tax year. Meanwhile, lawmakers and bipartisan tax policy professionals are working to determine the best path forward.
For the most up-to-date tax reform information affecting individual taxpayers, see the ‘Individuals’ page on the IRS Newsroom.
What would happen to my taxes if the Tax Cuts and Jobs Act expires in 2025?
The Tax Cuts and Jobs Act (TCJA) was signed into law in January 2018. This tax reform amended the tax code for individuals and business owners in several important ways. Individual taxpayers saw changes to their tax bills from lower tax brackets and rates, higher standard deduction amounts, an increase in the Child Tax Credit, the suspension of the personal exemption, and more.
Several TCJA provisions are set to expire at the end of 2025. Lawmakers will likely do something before the December 31 deadline. However, if they don’t take action, individual tax filers could experience the following impacts:
- The 20% deduction for pass-through business income could be eliminated.
- Maximum ordinary individual income tax rate of 37% could jump to 39.6%.
- Higher standard deductions could go back to the lower deductions in place before the TCJA was signed into law.
- Child tax credit could return to $1,000 instead of the current $2,000 credit.
- Rollback of Alternative Minimum Tax (AMT) reforms, which could result in more individuals being subject to the AMT.
Are there any new 2025 tax credits for individual filers?
At this time, there are no new tax credits or deductions for individuals for the 2025 tax year. However, Congress may decide to add, expand, or extend certain tax credits or exemptions as part of addressing the upcoming expiration of the TCJA.
See the ‘credits and deductions’ page on the IRS website for the most current information about available credits and deductions, which may lower your tax bill.
What is the standard deduction for 2024 and 2025?
For the 2024 tax year (with tax returns filed in 2025), the IRS standard deductions are as follows:
- $14,600 for singles or married individuals filing separately.
- $21,900 for heads of household.
- $29,200 for married couples.
Standard deductions for the 2025 tax year (with returns filed in 2026) will be as follows:
- $15,000 for singles or married individuals filing separately.
- $22,500 for heads of household.
- $30,000 for married couples.
What are the IRS tax bracket updates for 2025?
Following are the 2025 tax brackets from the IRS.
Single Taxpayers:
- 10% for incomes between $0 - $11,925.
- 12% for incomes between $11,926 - $48,475.
- 22% for incomes between $48,476 - $103,350.
- 24% for incomes between $103,351 - $197,300.
- 32% for incomes between $197,301 - $250,525.
- 35% for incomes between $250,526 - $626,350.
- 37% for incomes of $626.351 and up.
Married Taxpayers Filing Jointly:
- 10% for incomes between $0 - $23,850.
- 12% for incomes between $23,851 - $96,950.
- 22% for incomes between $96,951 - $206,700.
- 24% for incomes between $206,701 - $394,600.
- 32% for incomes between $394,601 - $501,050.
- 35% for incomes between $501,051 - 751,600.
- 37% for incomes of $751,601 and up.
Keep in mind that federal income tax in the United States is a progressive tax system. This means that if you are a single taxpayer and have $90,000 in taxable income for 2025, you would pay 10% on the first $11,925 of your income, 12% on income between $11,926 - $48,475, and 22% on the balance of your income.
Is my child a dependent for tax purposes?
IRS dependent eligibility is not expected to change for the 2025 tax year. In general, you can claim qualifying children and other qualifying relatives as dependents.
To be a qualifying child dependent, the child must:
- Be a qualifying relative: Your child, step-child, foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of these individuals.
- Meet age requirements: The potential dependent must be:
- Under age 19 at the end of the tax year and younger than you (and your spouse, if married filing jointly), or
- Under age 24 at the end of the tax year, a student, and younger than you (and your spouse, if married filing jointly), or
- Be any age, if totally and permanently disabled.
- Meet residency and support requirements: The potential dependent must have lived with you for more than half of the year and must not have provided more than half of their own support during the year.
- Must not file their own joint return. The potential dependent may not file a joint return for the tax year for which you want to claim them unless the only purpose of the return is to claim a refund of withheld taxes or estimated taxes paid to the IRS.
To determine if someone qualifies as your dependent, you can input some basic information into the IRS dependent eligibility tool. You will need to report your marital status, your relationship to the potential dependent, and the amount of support provided to them during the tax year. You will also need to provide your adjusted gross income.
IRS Publication 501 provides more information about claiming dependents on your federal tax returns.
How do I get updates on my tax refund?
If you are expecting a federal tax refund for your personal taxes and it has not arrived, you can use the ‘Where’s My Refund?’ tool on the IRS website to look up the status. Information should be available on the tool 24 hours after you’ve e-filed a current year’s tax return, 3-4 days after e-filing a prior year’s tax return, or approximately 4 weeks after filing a paper tax return.
You can also check on the status of your refund by downloading and using the IRS2Go mobile app.
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This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.
