The IRS has announced a series of changes for filing taxes in 2025. This photo shows the Internal Revenue Service tax forms for 2018. (AP Photo/Keith Srakocic, File)AP
The Internal Revenue Service (IRS) is encouraging taxpayers to make “essential preparations” and to be aware of “significant changes” that could affect their 2024 tax returns.
The 2025 tax season kicked off on Jan. 27, and some taxpayers have already started filing their tax returns with the IRS. On Feb. 19, the IRS released an update to its yearly “Tax Time Guide” that tells taxpayers to be aware of crucial changes affecting certain groups when filing.
The guides have been published each year since 2015.
Here’s what’s changed.
Standard deduction amount increase
For 2024, the standard deduction amount has increased for all filers: ; for
- Single or married filing separately — $14,600.
- Head of household — $21,900.
- Married filing jointly or qualifying surviving spouse — $29,200.
In 2023, the standard deduction for single taxpayers and married individuals was $13,850; for heads of households, it was $20,800.
Updates to Additional Child Tax Credit
The maximum Additional Child Tax Credit (ACTC) amount has increased to $1,700 for each qualifying child.
Bona fide residents of Puerto Rico are no longer required to have three or more qualifying children to be eligible to claim the ACTC. Bona fide residents of Puerto Rico may now be eligible to claim the ACTC if they have one or more qualifying children.
The IRS states it “cannot issue refunds before mid-February 2025 for returns that properly claim the ACTC.” This applies to the entire refund, not just the portion associated with the ACTC.
Changes to the Earned Income Tax Credit (EITC)
In order to claim the EITC without a qualifying child, taxpayers must be 25 years old but younger than 65 by the end of the year. Joint filers must have at least one spouse that meets this requirement.
Schedule 8812 (Form 1040) provides more details on the child tax credit.
Adoption Credit
The Adoption Credit and the exclusion for employer-provided adoption benefits are $16,810 per eligible child in 2024. The amount begins to phase out if taxpayers have a modified AGI over $252,150 and is completely phased out if their modified gross adjusted income is $292,150 or more. For more information, taxpayers can see Form 8839 and Form 8839.
Clean Vehicle Credit
The Clean Vehicle Credit must be reported using Form 8936 and Schedule 3 (Form 1040), line 6f. Further guidance is available in Form 8936, Clean Vehicle Credit.
Previously owned Clean Vehicle Credit
This credit is available for previously owned clean vehicles acquired and placed in service after 2022. Taxpayers can find more information on Form 8936, Clean Vehicle Credit.
More information on these and other credit and deduction changes for tax year 2024 may be found in Publication 17, Your Federal Income Tax (For Individuals), taxpayer guide.
The deadline for filing taxes is April 15.
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