2025 Tax Rates: A Guide for Married Couples Filing Jointly to Maximize Savings
According to Marca, The IRS has released its annual adjustments for tax year 2025, bringing some noteworthy changes that married couples filing jointly should be aware of. If you’re curious about your tax bracket for the upcoming year, let’s break it down in a friendly way.
Updated Tax Brackets for 2025
For 2025, the 10% tax bracket for married couples filing jointly will rise to $23,850, an increase from $23,200 in 2024. Here’s how the tax brackets will look for 2025:
- 10%: Income up to $23,850
- 12%: Income over $23,850 up to $96,950
- 22%: Income from $96,950 to $171,050
- 24%: Income from $171,050 to $394,600
- 32%: Income from $394,600 to $501,050
- 35%: Income from $501,050 to $751,600
- 37%: Income over $751,600
These adjustments aim to combat “bracket creep,” which occurs when inflation pushes taxpayers into higher tax brackets without real income increases. According to Alex Durante, an economist at the Tax Foundation, the 2025 adjustments reflect approximately a 2.8% increase in these thresholds—the smallest rise seen in recent years.
Increased Standard Deduction
In addition to the tax brackets, the standard deduction for married couples filing jointly will increase to $30,000, up from $29,200 in 2024. This is a valuable tool for reducing your taxable income. For example, if you and your spouse earn $100,000, applying the standard deduction means you’ll only be taxed on $70,000 of your income.
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Boost to Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is also getting a boost for 2025. Qualifying families with three or more children can claim a maximum credit of $8,046, up from $7,830 in 2024. This credit can significantly reduce your tax bill and potentially result in a refund if you qualify.
Conclusion
With these updates, you can better prepare for the upcoming tax season. Understanding your tax bracket and knowing about deductions can make a significant difference in your financial planning. Stay informed, plan ahead, and let these numbers work for you!
