News

Taxes

• The IRS will start accepting tax returns for 2024 tax year around January 28th, 2025.

•  The filing deadline has been set to be April 15th, 2025. I suggest not waiting, as the longer we wait the more we forget about it. Even if you owe taxes, filing now and paying later is a much better option.

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Standard Deduction

​$15,000 for single taxpayers.

$30,000 for married couples filing jointly.

Age-related standard deduction has increased slightly to help older adults reduce their taxable income. Here are the details:

• Single filers and heads of households aged 65 and older: The additional standard deduction is $2,000.

• Married couples filing jointly where one spouse is 65 or older: Each qualifying spouse gets an additional $1,600, totaling $3,200 if both spouses are 65 or older.

• Blind individuals: Those who are 65 or older and blind receive double the additional standard deduction, which would be $4,000 for single filers or heads of household.

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Child Tax Credit for 2025 tax filing season

• Child Tax Credit remains at $2,000 per qualifying child.

• The refundable portion of the credit is $1,700 per qualifying child.

• ​To qualify, the child must be under 17 years old at the end of the tax year, be a U.S. citizen, U.S. national, or U.S. resident alien, and have a valid Social Security number.

• The credit begins to phase out for individual taxpayers with incomes over $200,000 and for married couples filing jointly with incomes over $400,000.

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Earned Income Tax Credit for the 2025 tax filing season

The Earned Income Tax Credit (EITC) is a benefit for low- to moderate-income workers and families, particularly those with children. For the 2025 tax season, the maximum EITC amount is $8,046 for taxpayers with three or more qualifying children. The credit amount decreases as income rises and is available for lower income levels as well.

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To qualify for the EITC, you must have earned income and meet certain adjusted gross income (AGI) limits. The maximum income limits for 2025 are:

• $68,675 for taxpayers with three or more qualifying children

• $57,310 for taxpayers with two qualifying children

• $50,434 for taxpayers with one qualifying child

• $19,104 for taxpayers with no qualifying children

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​Virtual Currency

Virtual currency, such as cryptocurrencies, has unique tax implications. Here are some key points to keep in mind for the 2025 tax season:

1. Classification: Virtual currencies are treated as property for tax purposes. This means that transactions involving cryptocurrencies are subject to capital gains tax.

2. Taxable Events: Common taxable events include selling cryptocurrency for cash, trading one cryptocurrency for another, and using cryptocurrency to purchase goods and services.

3. Income from Cryptocurrency: Payments received in cryptocurrency, staking rewards, and mining income are classified as ordinary income and are taxed at standard income tax rates.

4. Record-Keeping: Maintain detailed records of transaction dates, fair market values, and cost bases. Accurate documentation helps ensure compliance and identify potential deductions or credits.

5. 1099 Forms: Crypto brokers will be required to file 1099 forms for customer sales and gains.

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As always, we are here to help as best we can.