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INDIVIDUAL TAX BRIEF

Looking ahead to 2025 tax limits as you prepare to file your 2024 return

Looking ahead to 2025 tax limits as you prepare to file your 2024 return

Chances are, you’re more concerned about your 2024 tax return right now than you are about your 2025 tax situation. That’s understandable because your 2024 individual tax return is due to be filed by April 15 (unless you file for an extension).

However, it’s a good time to familiarize yourself with tax amounts that may have changed for 2025 due to inflation. Not all tax figures are adjusted annually for inflation, and some amounts only change when Congress passes new laws.

In addition, there may be tax changes due to what’s happening in Washington. With Republicans in control of both the White House and Congress, we expect major tax law changes in the coming months. With that in mind, here are some Q&As about 2025 tax limits.

I haven’t been able to itemize deductions on my last few tax returns. Will I qualify for 2025?

Beginning in 2018, the Tax Cuts and Jobs Act eliminated the ability to itemize deductions for many people by increasing the standard deduction and reducing or eliminating various deductions.

If I don’t itemize deductions, can I claim charitable deductions on my 2025 return?

How much can I contribute to an IRA for 2025?

I have a 401(k) plan with my employer. How much can I contribute to it?

I occasionally hire a cleaning person. Am I required to withhold and pay FICA tax on the amounts I pay him or her?

How much of my earnings are taxed for Social Security in 2025?

How much can I give to one person without triggering a gift tax return in 2025?

How will the changes in Washington affect taxes this year and in the future?

Changes ahead

These are only some of the tax amounts and potential changes that may apply to you. Contact us if you have questions or need more information.