The 2025 tax filing season has officially begun, marking the time when millions of Americans must file their 2024 income tax returns with the Internal Revenue Service (IRS). As of January 27, 2025, the IRS is now accepting and processing tax returns, kicking off what is expected to be a busy season.
As tax season begins, it’s essential to stay informed about new tax brackets, inflation adjustments, and IRS initiatives. By preparing early, you can meet key deadlines, claim valuable deductions and credits, and maximize your financial benefits while avoiding penalties.
Key Deadlines
- January 27, 2025: Filing season begins
- April 15, 2025: Deadline for individual tax returns
Notable Tax Changes
- Standard Deduction Increases since 2024:
- Single: $15,000 (+$400)
- Married Joint: $30,000 (+$800)
- Head of Household: $22,500 (+$600)
- Top Tax Rate (37%) Thresholds:
- Single: Over $626,350
- Married Joint: Over $751,600
- AMT Exemption:
- Single: $88,100
- Married Joint: $137,000
- Earned Income Tax Credit (EITC):
- Max for three or more children: $8,046 (+$216)
Tax Relief for Disaster Victims
- Federal Extensions:
- Taxpayers in federally declared disaster areas (e.g., California wildfires) have until October 15, 2025, to file returns and make payments.
- State Relief:
- California residents affected by disasters qualify for state tax extensions.
- Property Tax Adjustments:
- Disaster-damaged properties may be eligible for reassessment and tax reductions.
As the tax season continues, staying informed and proactive is essential for ensuring a smooth filing process. For more detailed information and assistance, visit the IRS website.
Disclaimer:
The information provided is for informational purposes only and should not be considered investment advice. The information contained herein reflects Callan Capital’s views as of the date of distribution. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. Callan Capital does not provide tax, estate planning or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. Any forward-looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any decision. Callan Capital is not responsible for the consequences of any decisions or actions taken as a result of the information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of Callan Capital. For detailed information about our services and fees, please read our Form ADV Part 2A, and our Form CRS, which can be found at https://www.advisorinfo.sec.gov, or you can call us and request a copy at (866) 912-4888.
