As the 2025 tax season approaches, U.S. taxpayers—both individuals and businesses—are preparing to file returns for the 2024 tax year. Every year, the IRS updates key thresholds, credits, and regulations that affect how much you owe or can claim back. Staying informed about these changes isn’t just smart—it can save you money, help you avoid penalties, and ensure compliance with the latest tax rules. Whether you’re an employee, freelancer, small business owner, or LLC founder, here’s everything you need to know about the 2024–2025 U.S. tax filing changes that could impact your finances this season.
Updated Standard Deduction Amounts
For the 2024 tax year (filing in 2025), the IRS has once again adjusted standard deduction amounts to keep up with inflation. The new amounts are $14,600 for single filers, $29,200 for married couples filing jointly, and $21,900 for heads of household. This increase gives taxpayers a bit more breathing room before any taxable income kicks in. For many individuals who don’t itemize, the higher deduction can lead to a lower overall tax bill. However, those who own homes, have high medical expenses, or make significant charitable contributions may still benefit more from itemizing.
Income Tax Bracket Adjustments
The IRS has also adjusted federal income tax brackets for inflation. Although the tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%) remain the same, the income thresholds for each bracket have shifted slightly higher. That means more of your income could be taxed at a lower rate, reducing your overall tax liability. For example, in 2025, a single filer won’t hit the 24% bracket until their income exceeds $100,525—an increase from the previous year.
Changes in Tax Credits and Deductions
Several important credits and deductions have been updated or reinstated for the 2024–2025 filing season. The Child Tax Credit (CTC) remains at $2,000 per qualifying child, though discussions in Congress may lead to expansions in future years. The Earned Income Tax Credit (EITC) thresholds have been raised slightly, benefiting low- to moderate-income taxpayers. The Lifetime Learning Credit and American Opportunity Tax Credit continue to support education expenses, but income limits have increased, allowing more taxpayers to qualify.
For homeowners, the mortgage interest deduction remains intact, and taxpayers can still deduct state and local taxes (SALT) up to $10,000. However, several pandemic-era credits—such as expanded child credits and recovery rebates—are no longer available. Business owners, meanwhile, will want to pay close attention to changes in depreciation rules and Section 179 deductions, which have been indexed for inflation.
1099 Reporting Rules for Gig Workers and Freelancers
If you’re self-employed or work through digital platforms such as Uber, DoorDash, Etsy, or Upwork, the new 1099-K reporting threshold is one of the biggest changes to watch. While implementation has been delayed multiple times, the IRS plans to phase in the $5,000 threshold in 2025, down from the previous $20,000 and 200 transactions rule. This means many freelancers and small sellers will begin receiving 1099-K forms from payment processors such as PayPal, Stripe, and Venmo—significantly increasing visibility into online earnings. To avoid surprises, make sure you maintain accurate income and expense records throughout the year.
Retirement Contribution Limits Increased
Good news for savers: retirement plan contribution limits have increased for 2024. You can now contribute up to $23,000 to your 401(k), 403(b), or similar plan, with an additional $7,500 catch-up if you’re age 50 or older. The IRA contribution limit also rose to $7,000, or $8,000 for those 50+. These adjustments allow taxpayers to reduce taxable income while boosting long-term financial security. If you’re a business owner or self-employed individual, consider reviewing SEP or SIMPLE IRA contribution strategies before the filing deadline.
Inflation Reduction Act and Energy Tax Credits
The Inflation Reduction Act (IRA) continues to provide expanded energy-related tax credits in 2025. Homeowners can claim credits for installing solar panels, upgrading to energy-efficient windows, or purchasing certain clean appliances. The Clean Vehicle Credit also remains in effect, though eligibility now depends more on final vehicle assembly and battery sourcing requirements. These eco-friendly incentives not only reduce your tax burden but also encourage sustainable investments for the future.
Business Owners and LLCs: Important BOI Reporting Update
Starting in 2024, most U.S. companies—including LLCs, corporations, and certain partnerships—are required to file a Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN). This new requirement aims to increase transparency and prevent financial crimes. Failing to comply can lead to severe penalties. If you’ve recently formed an LLC, ensure your BOI report is submitted accurately and on time. For those unsure how to file, professional assistance from a tax expert or filing service can make the process simple and stress-free.
IRS Digital Upgrades and Paperless Processing
The IRS is moving toward a more digital-first approach. In 2025, more taxpayers will be able to digitally submit and receive key tax forms, reducing delays and improving processing times. E-filing remains the fastest way to receive refunds, and direct deposit is still the preferred refund method. The IRS’s modernization effort aims to cut down on backlogs and paper-based issues that plagued prior seasons.
What You Should Do Now
As you prepare for the 2025 tax season, it’s wise to start early. Gather your income documents, expense records, and any receipts for deductions or credits. Double-check updates to tax laws that apply to your specific situation—especially if you started a business, got married, had a child, or purchased property in 2024. Small mistakes or overlooked updates can delay refunds or even trigger IRS correspondence.
Working with a professional tax service can help ensure compliance while maximizing your deductions. Experts stay current on the latest IRS updates, manage complex returns, and provide audit support if needed. Whether you’re filing as an individual, managing an LLC, or handling payroll, accurate filing can make a big difference in your financial outcomes.
Contact Us
At RIWA Tax Services, we specialize in U.S. individual and business tax filings, LLC formation, payroll management, and BOI reporting. Our team stays updated on every new IRS rule so you don’t have to worry about missing a detail. The 2024–2025 tax season brings new opportunities—and new responsibilities—but with the right guidance, filing can be smooth and stress-free.
📞 Contact us today to get started with your 2025 tax filing or schedule a free consultation through Theriwa.com. Let us help you file with confidence and stay compliant with every IRS update.
