Somehow, another year has come and is almost gone! Throughout the year, we’ve discussed the tax changes and how they can or will affect you.
As you know, several changes happen every year, and with new government officials, 2025 is nothing different. We’ll brush over some of the changes from this year and continue to inform you of what’s coming for 2025.
Student Loan Deferments:
As of January 31st, 2025, all student loans will be in repayment. This means that any of the student loans the government placed on payment and an interest hold, will start requiring payments and accruing interest. If you are a student or owe student loans, you can see the options by logging into your borrower’s site. Most borrows will allow those to apply for income-driven repayment plans requiring current tax information. Contact us and we can see what we can do to help you if you own on student loans.
New Standard Deductions:
Another year means another change in taxes. It’s very common for tax brackets and tax deductions to change annually as inflation and the economy vary. 2024 has proved to be an interesting year with inflation. Therefore, the IRS has provided tax inflation adjustments for the upcoming year. According to the IRS’s website, “The standard deduction for married couples filing jointly for the tax year 2025 rises to $25,900 up to $800 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $12,950 for 2025, up to $400, and for heads of households, the standard deduction will be $19,400 for the tax year 2025, up to $600.” These deductions, of course, are used with your gross adjusted income for the year. If you have questions about these new deductions and where you fit into the changes, please come in and see us.
