Every year, tax laws evolve, and 2025 is no exception. Here’s what individuals and business owners should be aware of to stay compliant and maximize savings.

Key Changes for Individuals

📌 Adjustments to Tax Brackets and Standard Deduction

The IRS adjusts tax brackets annually to account for inflation. For 2025:

• The standard deduction is expected to increase, reducing taxable income for most filers.
• Marginal tax brackets may shift slightly, impacting effective tax rates.

📌 Updates to Tax Credits and Deductions

• Child Tax Credit (CTC): Potential increases or modifications are under discussion in Congress.
• Education Deductions & Credits: Student loan interest deductions and education credits may see updates.
• Retirement Contributions: 401(k) and IRA contribution limits are increasing, allowing for greater tax-deferred savings.

Key Changes for Businesses

📌 Business Deductions and Credits

• Potential adjustments to Qualified Business Income (QBI) deductions for pass-through entities.
• New incentives for green energy adoption and business sustainability.
• Changes in Section 179 depreciation rules for equipment and asset purchases.

📌 Corporate Tax Rates & Compliance

• Possible corporate tax rate adjustments under new economic policies.
• Increased IRS enforcement on large business tax returns and deductions.

📢 What You Should Do: Schedule a tax planning session to adjust your financial strategy based on the new 2025 tax laws.