Wolters Kluwer Tax & Accounting (TAA) has unveiled its projected inflation-adjusted amounts for the tax year 2025, in a new report. This major update includes anticipated changes in tax brackets, the standard deduction, alternative minimum tax amounts, and other key factors.
Drawing on the latest Consumer Price Index figures from the U.S. Department of Labor, the report offers a comprehensive forecast for the coming tax year. The IRS will confirm the exact amounts for 2025 later this year.
Key elements of Wolters Kluwer’s projections include individual tax brackets for different filing statuses, covering married taxpayers filing jointly, heads of households, unmarried taxpayers, married taxpayers filing separately, and estates and trusts. Each category has been restructured with detailed brackets to accommodate various taxable income levels.
Moreover, 2025’s standard deduction and AMT exemption amounts have been predicted for different filing statuses, providing essential insights for tax planning. The potential standard deduction ranges from $15,000 for unmarried and separately filing married taxpayers to $30,000 for joint filers.
Key projected changes include:
- Individual tax rates: The top of the ten percent tax rate for single taxpayers increases to $11,925 in 2025, an increase of $325 over 2024. The beginning of the top 37 percent tax bracket starts at $626,350 for 2025, an increase of $17,000 over 2024.
- Standard deduction: The standard deduction for single taxpayers increases to $15,000 in 2025, an increase of $400 over 2024. The standard deduction for joint filers increases to $30,000 in 2025, an increase of $800 over 2024.
- Estate tax exemption amount: The estate tax exemption amount for 2025 is projected to be $13,990,000, an increase of $380,000 over 2024.
- Gift tax annual exclusion: The gift tax annual exclusion is projected to increase to $19,000 for 2025, an increase of $1,000 from 2024.
There are over 60 provisions in the Tax Code subject to inflation adjustments, and an additional set of retirement plan limits subject to a separate inflation adjustment calculation.
Expert Interview Opportunity
For a deeper dive into these inflation adjustments to tax provisions for 2025 and their implications, reporters are invited to contact Shannon Wherry, Associate Director, External Communications, to arrange interviews with the following Wolters Kluwer Tax & Accounting (TAA) expert:
- Mark Luscombe, CPA, attorney, and the principal federal tax analyst for Wolters Kluwer Tax & Accounting. Luscombe, who chairs the Important Developments Subcommittee of the Partnership Committee of the American Bar Association Tax Section, has extensive experience in taxation. His understanding of tax law developments offers invaluable insights into how these proposed policies may impact taxpayers and the wider economy.
About Wolters Kluwer
Wolters Kluwer (EURONEXT: WKL) is a global leader in information, software solutions and services for professionals in healthcare; tax and accounting; financial and corporate compliance; legal and regulatory; corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with technology and services.
Wolters Kluwer reported 2023 annual revenues of €5.6 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 21,400 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.
For more information, visit www.wolterskluwer.com, follow us on LinkedIn, Facebook, YouTube and Instagram.
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