WASHINGTON (TNND) — of I.R.S. just released inflation-adjusted tax numbers for 2025, along with dozens of other provisions for next year.
Usha Rackliffe, a financial expert at Emory University, said the biggest difference in 2025 compared to previous years is a 2.8% adjustment to income tax brackets.
This is a significant decrease from previous years,” Rackliffe said.
What does this mean for people who pay taxes in 2025 compared to 2024? Rackliffe says, for example, if you're a single person making $120,000 a year and taking the standard deduction. He said it would save him some money.
“These tax classification changes will result in approximately $300 in tax savings in 2025,” Rackliffe said.
Additionally, she says the same will carry over to couples filing together.
“So everyone is going to save a little bit on their taxes,” Rackliffe said.
Carolyn Bruckner, a tax expert at American University, said these tax bracket adjustments aren't the only things that will change in 2025.Tax Cuts and Jobs ActThis provision is also set to expire at the end of next year.
The changes on the personal tax side expire in 2025,” Bruckner said.
She says it's important to monitor tax adjustments, but believes there could be more changes next year.
“These are very important budget discussions, and they will impact the discussions at the dinner table in American households,” Bruckner said.
In addition to adjusting tax brackets, the IRS also increased numbers for other provisions such as long-term capital gains, estate and gift tax exemptions, and eligibility for the earned income tax credit.
