Key Changes for 2025 Tax Filing Season

Standard Deduction: The standard deduction has increased. For single taxpayers and married individuals filing separately, it's now $15,000 (up from $14,600 in 2024). For married couples filing jointly, it's $30,000 (up from $29,200).

Child Tax Credit: The maximum child tax credit remains $2,000 per qualifying child under 17, but the refundable portion has increased to $1,700.

Earned Income Tax Credit (EITC): For filers with three or more qualifying children, the maximum EITC amount is $8,046, up from $7,830 in 2024.

Income Tax Brackets: The IRS has adjusted the income tax brackets to account for inflation. This could result in lower tax rates for some taxpayers.

1099-K Reporting Threshold: The threshold for 1099-K reporting has been reduced to $5,000 for 2024, with plans to further reduce it to $2,500 in 2025.

Considerations

Review Your Deductions: With the increase in the standard deduction, it might be beneficial to review whether itemizing deductions still makes sense for you.

Check for Credits: Ensure you're aware of any tax credits you may be eligible for, such as the EITC or child tax credit.

Update Records: Make sure your records are up-to-date, especially if you receive payments through third-party platforms that might trigger 1099-K forms.

Consult a Professional: Given the changes, it might be helpful to consult a tax professional to ensure you're maximizing your deductions and credits.