Google trend - Income tax Budget 2025

Income tax Budget 2025 - 10 things to know with detail

• Tax rates: The income tax rates for Budget 2025 will remain the same as the previous year, with no changes in the tax brackets or rates.
• Standard deduction: The standard deduction for individuals will be increased to $12,000 for single filers and $24,000 for married couples filing jointly.
• Capital gains tax: The capital gains tax rate will remain at 15% for most taxpayers, with a higher rate of 20% for high-income earners.
• Child tax credit: The child tax credit will be increased to $3,000 per child for children under the age of 17, with an additional $600 credit for children under the age of 6.
• Earned Income Tax Credit (EITC): The EITC will be expanded to provide more assistance to low-income workers, with an increase in the maximum credit amount and an expansion of eligibility criteria.
• Alternative Minimum Tax (AMT): The AMT exemption amount will be increased to $75,000 for single filers and $113,400 for married couples filing jointly, to reduce the impact of the AMT on middle-class taxpayers.
• Retirement savings: The contribution limits for retirement accounts, such as 401(k) plans and IRAs, will be increased to encourage more saving for retirement.
• Health savings accounts (HSAs): The contribution limits for HSAs will be increased to allow individuals to save more for medical expenses tax-free.
• Itemized deductions: The limit on itemized deductions will be eliminated, allowing taxpayers to deduct all eligible expenses without a cap.
• Tax credits for renewable energy: There will be new tax credits for investments in renewable energy sources, such as solar and wind power, to encourage sustainable energy production and reduce carbon emissions.