IRS Announces 2025 Federal Tax Brackets: What You Need to Know

The Internal Revenue Service (IRS) has announced increased federal income tax brackets and standard deductions for the upcoming year. This update aims to account for inflation and prevent "tax bracket creep." The changes may result in some individuals falling into lower tax brackets, leading to potentially higher take-home pay.

Key updates include:

* Increased standard deduction for single filers: $15,000 (up from $14,400)
* Standard deduction for married couples filing jointly: $30,000 (up from $29,200)
* Potential for some individuals to fall into lower tax brackets, leading to increased take-home pay

Source: https://www.cnet.com/personal-finance/taxes/irs-announces-2025-federal-tax-brackets-heres-what-that-means-for-your-paycheck/#ftag=CAD590a51e