A few of the upcoming tax law changes for 2025 include:
Rise In Standard Deductions
For married couples filing jointly, the standard deduction increases to $30,000, up $800 from tax year 2024. For heads of household, it is $22,500 for tax year 2025, up $600 from 2024. For single and married filing separately for 2025, the standard deduction increases to $15,000, up $400 from 2024.
401K and Roth Changes
For 2025, individuals can contribute 401K $23,500, up from $23,000 in 2024.
The 401K catch-up contribution limit will remain $7,500 for participants aged 50 and older. There is a change in the higher catch-up contribution limit for investors aged 60 to 63. This higher limit is $11,250 versus $7,500 for 2024.
For Roth IRA contributions in 2025, the income phase-out range for taxpayers increases. For single filers and married filing separate, the phase out range increases to between $150,000 and $165,000, up from between $146,000 and $161,000. For married filing jointly, the income phase-out range increases to between $236,000 and $246,000, up from between $230,000 and $240,000.
Mileage Reimbursement Rates
For 2025, the standard mileage rate for self-employed and businesses is 70 cents/mile, up from 67 cents/mile in 2024. For charities 14 cents/mile and for medical 21 cents/mile.
