Introduction: IRS Announces

WASHINGTON (TNND) — The IRS
just announced
its inflation-adjusted tax brackets for
2025 along with dozens of
other provisions for next year.

Usha Rackliffe, a finance expert at Emory
University said the biggest difference in

2025 compared to previous years is that
the income tax brackets have been adjusted by 2.8%.

Which is significantly less than prior years,” Rackliffe said.

What does this mean for someone paying taxes
in 2025 compared to 2024? Rackliffe said for

example, if you’re a single person making
$120,000/year and taking a standard deduction,
you will save some money.

“In 2025, because of the changes
in these tax brackets,
you would save in your tax bill
approximately $300,” Rackliffe said.

Plus, she said the same thing will carry over to
married couples filing together.

“So everybody will see a little bit of
savings in their taxes,” said Rackliffe.

Caroline Bruckner, a tax expert at
American University

Said these tax bracket
adjustments aren’t the only
things changing in 2025.

DifferentTax Cuts and Jobs Actprovisions are also
set to expire at the end of next year.

The changes on the individual tax side,
they expire in 2025,” Bruckner said.

She believes that while it’s important to
keep tabs on the tax

Bracket adjustments,
next year could come with even more changes.

“These are hugely important budgetary debates
and they will impact American families’
kitchen table discussions,” said Bruckner.

Along with the tax bracket adjustments,
the IRS also boosted figures for other

provisions like long-term capital gains,
estate and gift tax exemptions and
eligibility for the earned income tax credit.