Tax season is barely months away, so it’s best to start preparing, the IRS reminds taxpayers.“Our focus at the IRS continues to be on making tax filing easier and more accessible for everyone,” says IRS Commissioner Danny Werfel. “We’ve added more digital tools to help taxpayers. But as tax season quickly approaches, the IRS reminds taxpayers there are important steps they can take now to get ready for 2025. From reviewing withholding to signing up for an IRS Online Account, there are multiple ways for people to help make the 2025 filing season easier.” Here’s what you need to know about new filing rules for 2025.
RELATED: The IRS Is Changing This Tax Rule for 2025.
Deadline For Quarterly Payment
ShutterstockThe deadline for 2024’s last quarterly estimated payment is Jan. 15, 2025. “Taxpayers with non-wage income—such as unemployment benefits, self-employment income, annuity payments or earnings from digital assets—may need to make estimated or additional tax payments,” says the IRS. “TheTax Withholding Estimator on IRS.gov can help wage earners determine if they need to make an additional payment to avoid an unexpected tax bill when filing their return.”
1099-K Reporting Changes
iStockThe IRS says anyone who got paid more than $5,000 through payment apps or an online marketplace in 2024 should expect to receive Form 1099-K in January 2025, and a copy will also be sent to the IRS. “Although the IRS is taking a phased in approach to implementation of the Form 1099-K reporting threshold, there have been no changes to the taxability of income,” the agency states. “All income, including proceeds from part-time work, side jobs or the sale of goods and services is taxable. Taxpayers must report all income on their tax return unless it's excluded by law, whether they receive a Form 1099-K or not. The law doesn’t allow taxpayers to avoid taxes on income earned just because they didn’t get a form reporting the payments received.”
Digital Assets In 2025
iStockTaxpayers who own digital assets such as cryptocurrency, stablecoins and non-fungible tokens (NFTs) must declare them when filing in 2025. “If a taxpayer had digital asset transactions last year, they should be sure to keep records that prove their purchase, receipt, sale, exchange or any other disposition of the digital assets and that includes the fair market value, as measured in U.S. dollars of all digital assets received as income or as a payment in the ordinary course of a trade or business,” says the IRS.
Standard Deduction Rates
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The IRS is changing standard deduction rates for 2025. “For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction rises to $15,000 for 2025, an increase of $400 from 2024,” the agency says. “For married couples filing jointly, the standard deduction rises to $30,000, an increase of $800 from tax year 2024. For heads of households, the standard deduction will be $22,500 for tax year 2025, an increase of $600 from the amount for tax year 2024.”
RELATED: Big Changes Coming to Social Security.
Marginal Rates Changes
Shutterstock Here’s what taxpayers need to know about marginal rates changes for 2025:
“For tax year 2025, the top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The other rates are:
35% for incomes over $250,525 ($501,050 for married couples filing jointly).
32% for incomes over $197,300 ($394,600 for married couples filing jointly).
24% for incomes over $103,350 ($206,700 for married couples filing jointly).
22% for incomes over $48,475 ($96,950 for married couples filing jointly).
12% for incomes over $11,925 ($23,850 for married couples filing jointly).
10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly).”
Earned Income Tax Credit Changes
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Parents can expect some positive tax changes in 2025:“For qualifying taxpayers who have three or more qualifying children, the tax year 2025 maximum Earned Income Tax Credit amount is $8,046, an increase from $7,830 for tax year 2024,” says the IRS. “The revenue procedure contains a table providing maximum EITC amount for other categories, income thresholds and phase-outs.”
