What's New for 2025 Taxes
Each year the IRS updates tax brackets, deductions, and tax credits to account for inflation and new legislation. For the 2025 tax year, several IRS tax changes may affect your federal tax return, including higher standard deductions, updates to the Child Tax Credit, and adjustments to income tax brackets.
Below are some of the most important federal tax updates taxpayers should know when preparing their 2025 tax return.
Standard Deduction for 2025
The IRS increased the standard deduction for the 2025 tax year. Most taxpayers claim the standard deduction instead of itemizing deductions.
- Single: $15,750
- Married Filing Jointly: $31,500
- Head of Household: $23,625
The standard deduction reduces your taxable income. A higher deduction means many taxpayers may owe less tax before credits are applied.
For more information visit the IRS official announcement .
Child Tax Credit for 2025
For the 2025 tax year, the Child Tax Credit is up to $2,200 per qualifying child under age 17.
Part of this credit may be refundable through the Additional Child Tax Credit (ACTC), which can be up to $1,700. To qualify for the refundable portion, taxpayers must generally have earned income of at least $2,500.
The Child Tax Credit helps families reduce their tax liability and may increase tax refunds. For more details visit the IRS Child Tax Credit page .
Tax Brackets Adjusted for Inflation
Federal income tax brackets are adjusted each year to account for inflation. These adjustments help prevent taxpayers from moving into higher tax brackets simply because wages increased due to inflation.
Although tax rates remain the same, the income ranges for each bracket increase slightly each year. You can review the current federal tax brackets on the IRS tax brackets page .
1099 Income and Self-Employment Reporting
Independent contractors and gig workers must report all income received from freelance work or business activity. This includes income reported on Forms 1099-NEC and 1099-K.
Common examples include income from:
- Uber and Lyft driving
- DoorDash and delivery services
- Freelance or contract work
- Online marketplaces and digital platforms
Self-employed taxpayers may qualify for deductions such as mileage, business expenses, home office expenses, and the Qualified Business Income (QBI) deduction.
If you drive for rideshare or delivery platforms, you can learn more about Uber and gig worker taxes.
IRS Mileage Rate
Self-employed individuals and business owners may deduct vehicle expenses using the IRS standard mileage rate when a vehicle is used for business purposes.
This deduction is commonly used by rideshare drivers, delivery drivers, real estate agents, and other self-employed professionals who drive for business purposes.
You can also estimate deductions using our self-employment tax calculator.
Important Tax Deadlines
- January 2026: Employers send W-2 and 1099 forms
- April 15, 2026: Federal tax filing deadline
- October 15, 2026: Extended filing deadline if an extension is filed
Filing early helps avoid delays and reduces the risk of identity theft and refund fraud.
Other Tax Changes
- Increased SALT Deduction Cap: The State and Local Tax (SALT) deduction cap increases to $40,000.
- "No Tax on Tips" Deduction: Employees and self-employed individuals may deduct up to $25,000 in qualified tip income.
- "No Tax on Overtime" Deduction: A new deduction for qualified overtime pay, with maximum deductions of $12,500 for single filers and $25,000 for married filing jointly.
- Senior Deduction: Taxpayers aged 65 or older may qualify for an additional $6,000 deduction.
- Car Loan Interest Deduction: A new deduction for interest paid on certain vehicle loans up to $10,000.
- Business Changes: 100% bonus depreciation for certain qualified property purchased after January 19, 2025.
Tax Preparation for Hacienda Heights and Nearby Cities
JMLINCE Income Tax Service helps individuals, families, gig workers, and small businesses prepare accurate federal and California tax returns.
Clients from Hacienda Heights, Whittier, La Puente, Rowland Heights, West Covina, and nearby Los Angeles County communities can complete their taxes either in person or completely online.
File Your Taxes Online or In Person
Most clients simply upload their documents securely and sign their tax return electronically. Federal and California state returns are then filed through an IRS-authorized electronic filing system.
Upload your tax documents securely
Need Help with Your 2025 Taxes?
If you have questions about the new tax rules or need help preparing your tax return, we are here to help.
Call or text: 626-664-3145
CTEC Registered Tax Preparer serving Hacienda Heights and surrounding communities since 2006.
This information is provided for general educational purposes only. Tax laws may change and individual situations vary. Consult a qualified tax preparer for advice specific to your situation.