The IRS has announced the official inflation adjustments for the 2025 tax year (filing in 2026). These numbers are used to estimate your 2025 tax liability. Tax Brackets and RatesThere are seven tax rates for 2025: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.The top 37% marginal tax rate applies to:Single Filers: Incomes greater than $626,350Married Filing Jointly: Incomes greater than $751,600Standard Deduction Amounts (Increase from 2024)Individuals & Married Filing Separately: $15,000 (an increase of $400)Married Filing Jointly: $30,000 (an increase of $800)Heads of Household: $22,500 (an increase of $600)Additional Standard Deduction for Aged or Blind (2025):$1,600$2,000 for unmarried taxpayersKey Adjustments & CreditsCategory2025 Adjustment/AmountDetailPersonal ExemptionsEliminatedContinues due to the 2017 tax reform (TCJA).Child Tax Credit (Refundable Max)$1,700Maximum refundable amount, assuming no legislative changes.Earned Income Tax Credit (EITC) Max$8,046For married filing jointly with three or more qualifying children.Adoption Credit Max$17,280For both special needs and other qualified adoptions. Phased out for MAGI between $259,190 and $299,190.QBI Deduction (Section 199A) ThresholdBegins at $394,600For married taxpayers filing jointly, subject to phase-in amounts.Foreign-Earned Income Exclusion$130,000Up from $126,500 in 2024.Alternative Minimum Tax (AMT) ExemptionsFiling Status2025 Exemption AmountPhase-out Begins AtSingle Filers$88,100$626,350Married Filing Jointly$137,000$1,252,700Federal Estate & Gift TaxEstate Tax Exclusion (Per Person): $13,990,000Annual Gift Tax Exclusion: $19,000 (Up from $18,000 in 2024)Gift Exclusion for Non-U.S. Citizen Spouse: $190,000 (Up from $185,000 in 2024)Other Notable ItemsStudent Loan Interest Deduction: The $2,500 maximum deduction begins to phase out for joint returns with Modified Adjusted Gross Income (MAGI) over $170,000, and is fully phased out at $200,000 or more.HSA Annual Contribution Limit: $4,300 for self-only coverage; $8,550 for family coverage.Eligible Educator Deduction: $300 (unchanged from 2024).Transportation Fringe Benefit Limit: $325 per month (for qualified transportation and qualified parking).Itemized Deductions (Schedule A) Remain: The 7.5% Adjusted Gross Income (AGI) floor for medical expenses, $10,000 cap for State and Local Taxes (SALT), and the $750,000 cap for home mortgage interest deduction remain in place.