Each year the Internal Revenue Service issues updates. Below are those we feel are most important.
Standard Deductions
| Filing Status | Standard Deduction |
| Married Individuals Filing Joint Returns and Surviving Spouses | $30,000 |
| Heads of Households | $22,500 |
| Unmarried Individuals (other than Surviving Spouses and Heads of Households) | $15,000 |
| Married Individuals Filing Separate Returns | $15,000 |
Dependent: For taxable years beginning in 2025, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of (1) $1,350, or (2) the sum of $450 and the individual’s earned income.
Annual Exclusion for Gifts
- For calendar year 2025, the first $19,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts made during that year.
- For calendar year 2025, the first $190,000 of gifts to a spouse who is not a citizen of the United States (other than gifts of future interests in property) are not included in the total amount of taxable gifts made during that year.
IRS 2025 Tax Rate Tables
Married Individuals Filing Joint Returns and Surviving Spouses
| If Taxable Income Is: | The Tax Is: |
| Not over $23,850 | 10% of the taxable income |
| Over $23,850 but not over $96,950 | $2,385 plus 12% of the excess over $23,850 |
| Over $96,950 but not over $206,700 | $11,157 plus 22% of the excess over $96,950 |
| Over $206,700 but not over $394,600 | $35,302 plus 24% of the excess over $206,700 |
| Over $394,600 but not over $501,050 | $80,398 plus 32% of the excess over $394,600 |
| Over $501,050 but not over $751,600 | $114,462 plus 35% of the excess over $501,050 |
| Over $751,600 | $202,154.50 plus 37% of the excess over $751,600 |
Heads of Households
| If Taxable Income Is: | The Tax Is: |
| Not over $17,000 | 10% of the taxable income |
| Over $17,000 but not over $64,850 | $1,700 plus 12% of the excess over $17,000 |
| Over $64,850 but not over $103,350 | $7,442 plus 22% of the excess over $64,850 |
| Over $103,350 but not over $197,300 | $15,912 plus 24% of the excess over $103,350 |
| Over $197,300 but not over $250,500 | $38,460 plus 32% of the excess over $197,300 |
| Over $250,500 but not over $626,350 | $55,484 plus 35% of the excess over $250,500 |
| Over $626,350 | $187,031.50 plus 37% of the excess over $626,350 |
[Single] Unmarried Individuals
(other than Surviving Spouses and Heads of Households)
| If Taxable Income Is: | The Tax Is: |
| Not over $11,925 | 10% of the taxable income |
| Over $11,925 but not over $48,475 | $1,192.50 plus 12% of the excess over $11,925 |
| Over $48,475 but not over $103,350 | $5,578.50 plus 22% of the excess over $48,475 |
| Over $103,350 but not over $197,300 | $17,651 plus 24% of the excess over $103,350 |
| Over $197,300 but not over $250,525 | $40,199 plus 32% of the excess over $197,300 |
| Over $250,525 but not over $626,350 | $57,231 plus 35% of the excess over $250,525 |
| Over $626,350 | $188,769.75 plus 37% of the excess over $626,350 |
Married Individuals Filing Separate Returns
| If Taxable Income Is: | The Tax Is: |
| Not over $11,925 | 10% of the taxable income |
| Over $11,925 but not over $48,475 | $1,192.50 plus 12% of the excess over $11,925 |
| Over $48,475 but not over $103,350 | $ 5,578.50 plus 22% of the excess over $48,475 |
| Over $103,350 but not over $197,300 | $17,651 plus 24% of the excess over $103,350 |
| Over $197,300 but not over $250,525 | $40,199 plus 32% of the excess over $197,300 |
| Over $250,525 but not over $375,800 | $57,231 plus 35% of the excess over $250,525 |
| Over $375,800 | $101,077.25 plus 37% of the excess over $375,800 |
Estates and Trusts
| If Taxable Income Is: | The Tax Is: |
| Not over $3,150 | 10% of the taxable income |
| Over $3,150 but not over $11,450 | $315 plus 24% of the excess over $3,150 |
| Over $11,450 but not over $15,650 | $2,307 plus 35% of the excess over $11,450 |
| Over $15,650 | $3,777 plus 37% of the excess over $15,650 |
New W-9 Form
(released March 2024)
The form includes a new check box in Line 3a that pertains to LLCs. For an LLC that is not a disregarded entity, line 3a has checkboxes to indicate whether the LLC is a corporation, S corporation or partnership (C, S or P). For an LLC that is a disregarded entity, the owner’s name should appear on Line 1, the disregarded entity’s name should appear on Line 2 and the appropriate box should be checked on Line 3a. The LLC box should not be checked unless the Owner on Line 1 is another LLC that is not a disregarded entity.
Also new is Line 3b with a checkbox. U.S. flow-through entities (partnerships, trusts, estates and LLCs classified as partnerships) FTEs that have direct or indirect foreign partners, owners or beneficiaries and are providing Form W-9 to another FTE in which the W-9 filer has an ownership interest, should check this new box. The Instructions to Form W-9 explain that U.S. FTEs must check the box on line 3b if they receive a Form W-8 (or documentary evidence) from any partner, owner or beneficiary establishing foreign status or if they receive a Form W-9 from any partner, owner or beneficiary that has checked the box on Line 3b.
The new form can be accessed here.
