Expert Tax Services for Small Businesses

For 2025, the IRS increased the standard deduction to:

• $15,000 for single filers and married individuals filing separately
• $30,000 for married couples filing jointly
• $22,500 for heads of household IRS
   

Because of inflation adjustments, many tax thresholds, such as income levels for each tax bracket, the Alternative Minimum Tax (AMT) exemption, and other credits have also been raised. 

Between 2025 and 2028, taxpayers who are age 65 or older can claim an additional $6,000 deduction, whether or not they itemize. 

• This deduction phases out for higher-income individuals (based on modified adjusted gross income). 
• It’s in addition to any extra standard deduction currently allowed for age or blindness.
   

A new provision allows eligible tipped workers to exclude up to $25,000 of tip income from federal income tax for 2025–2028. 

• The deduction phases out for higher-income taxpayers. 
• This applies only to federal income tax. Tip income remains subject to payroll taxes (Social Security, Medicare).
   

• The 401(k) contribution limit has increased to $23,500 for 2025.  
• IRA limits remain unchanged (e.g. $7,000) in 2025.
   

• If you’re 65 or older, let us know, you may qualify for the new $6,000 deduction.
• Review your withholding or estimated tax payments. With income changes, inflation, or new deductions, you may need to adjust to avoid surprises.
• If you or your employees earn tip income, we should evaluate if the “No Tax on Tips” provision applies.
• Check your retirement plan contributions, especially for 401(k), to maximize those limits legally.
• Be aware that phaseouts and income thresholds have shifted upward. Even if your income is similar to last year, your tax bracket or eligibility for credits could be different.
  tation in case of an audit. With our help, you can rest easy knowing that your tax affairs are in good hands.