| | Individual Income Tax Planning
Adoption credit
| Adoption credit | 2024 | 2025 |
|---|
| Maximum credit | $16,810 | $17,280 | | Phaseout threshold amount | $252,150 | $259,190 | | Completed phaseout amount after | $292,150 | $299,190 |
Alternative Minimum Tax (AMT)
| Maximum AMT exemption amount | 2024 | 2025 |
|---|
| Married filing jointly or surviving spouse | $133,300 | $137,000 | | Single or head of household | $85,700 | $88,100 | | Married filing separately | $66,650 | $68,500 |
| AMT income exemption phaseout threshold | 2024 | 2025 |
|---|
| Married filing jointly or surviving spouse | $1,218,700 | $1,252,700 | | Single or head of household | $609,350 | $626,350 | | Married filing separately | $609,350 | $626,350 |
| AMT tax rate (26% rate applies to AMTI at or below amount;
28% applies to AMTI above amount) | 2024 | 2025 |
|---|
| All taxpayers except married filing separately | $232,600 | $239,100 | | Married filing separately | $116,300 | $119,550 |
Charitable deductions
| Use of auto | 2024 | 2025 |
|---|
| Deductible standard mileage rate | $0.14 | $0.14 |
| Charitable fundraising "insubstantial benefit"
limitation | 2024 | 2025 |
|---|
| Low-cost article (re: unrelated business income) | $13.20 | $13.60 |
| Gifts to donor in return for contribution | 2024 | 2025 |
|---|
| Token gift maximum cost1 | $13.20 | $13.60 | | Minimum contribution amount1 | $66.00 | $68.00 | | 2% threshold amount2 | $132 | $136 |
1 Contribution is fully deductible if minimum
contribution amount is met and cost of token gift does not exceed maximum
2 Charitable contribution is fully deductible
if the benefit received by the donor doesn't exceed the lesser of the threshold
amount or 2% of the amount of the contribution
Child tax credit
| Amount of credit | 2024 | 2025 |
|---|
| Maximum credit per qualifying child | $2,000 | $2,000 | | Nonrefundable credit for dependents
who are not qualifying children | $500 | $500 |
| Phaseout -- credit reduced by $50 for each $1,000 or fraction
thereof of MAGI over (but not to be reduced below $2,000): | 2024 | 2025 |
|---|
| Married filing jointly or surviving spouse | N/A | N/A | | Head of household | N/A | N/A | | Single or married filing separately | N/A | N/A |
| Phaseout -- any remaining credit reduced by $50 for each $1,000 or fraction
thereof of MAGI over: | 2024 | 2025 |
|---|
| Married filing jointly | $400,000 | $400,000 | | All other filing status | $200,000 | $200,000 |
| Refundability -- up to specified percentage of earned income
in excess of specified amount | 2024 | 2025 |
|---|
| Percentage | 15% | 15% | | Amount | $2,500 | $2,500 | | Maximum refundable amount of
credit | $1,700 | $1,700 |
Classroom expenses of elementary and secondary school
teachers
| Classroom expense deduction | 2024 | 2025 |
|---|
| Maximum above-the-line deduction | $300 | $300 |
Earned income tax credit (EITC)
| Investment income limit | 2024 | 2025 |
|---|
| Excessive investment income limit ("disqualified income
limit") | $11,600 | $11,950 |
| Maximum amount of EITC per number of children | 2024 | 2025 |
|---|
| 0 children | $632 | $649 | | 1 child | $4,213 | $4,328 | | 2 children | $6,960 | $7,152 | | 3 or more children | $7,830 | $8,046 |
| Maximum amount of earned income on which EITC is based
(earned income over this amount but under the threshold phaseout amount will
not change the amount of the credit received) | 2024 | 2025 |
|---|
| 0 children | $8,260 | $8,490 | | 1 child | $12,390 | $12,730 | | 2 or more children | $17,400 | $17,880 |
| Threshold phaseout amount for joint filers per number of
children | 2024 | 2025 |
|---|
| 0 children | $17,250 | $17,730 | | 1 child | $29,640 | $30,470 | | 2 children | $29,640 | $30,470 | | 3 or more children | $29,640 | $30,470 |
| Threshold phaseout amount for other filers per number of
children | 2024 | 2025 |
|---|
| 0 children | $10,330 | $10,620 | | 1 child | $22,720 | $23,350 | | 2 children | $22,720 | $23,350 | | 3 or more children | $22,720 | $23,350 |
| Completed phaseout amount for joint filers per number of
children | 2024 | 2025 |
|---|
| 0 children | $25,511 | $26,214 | | 1 child | $56,004 | $57,554 | | 2 children | $62,688 | $64,430 | | 3 or more children | $66,819 | $68,675 |
| Completed phaseout amount for other filers per number of
children | 2024 | 2025 |
|---|
| 0 children | $18,591 | $19,104 | | 1 child | $49,084 | $50,434 | | 2 children | $55,768 | $57,310 | | 3 or more children | $59,899 | $61,555 |
Expatriation
| Covered expatriate | 2024 | 2025 |
|---|
| An individual with "average annual net income tax" of more
than this amount for the five taxable years ending before his or her loss of
citizenship is a covered expatriate for the purposes of IRC §877A(g)(1) | $200,000 | $206,000 | | IRC §877A(3) exclusion amount | $866,000 | $890,000 |
Foreign earned income
| Amount excluded from income | 2024 | 2025 |
|---|
| Exclusion amount | $126,500 | $130,000 |
Itemized deductions
| Phaseout threshold | 2024 | 2025 |
|---|
| Married filing jointly | N/A | N/A | | Head of household | N/A | N/A | | Unmarried | N/A | N/A | | Married filing separately | N/A | N/A |
Kiddie tax
| Unearned income limit | 2024 | 2025 |
|---|
| Amount exempt from tax | $1,300 | $1,350 | | Additional amount taxed at child's rate | $1,300 | $1,350 | | Unearned income over this amount generally taxed at parents' tax rates | $2,600 | $2,700 |
| Parent's election | 2024 | 2025 |
|---|
| Election to include child's income on parent's return --
child's gross income requirement | $1,300 - $13,000 | $1,350 - $13,500 |
| AMT | 2024 | 2025 |
|---|
| AMT exemption for child subject to kiddie tax | Lesser of $9,250 + child's earned income or $85,700 | Lesser of $9,550 + child's earned income or $88,100 |
Medicare tax (additional payroll tax and unearned
income contribution tax)
| Payroll tax | 2024 | 2025 |
|---|
| Additional Medicare payroll tax (and self-employment tax)
percentage rate | 0.90% | 0.90% |
| Applies to wages/self-employment income exceeding | 2024 | 2025 |
|---|
| Individuals | $200,000 | $200,000 | | Married filing jointly
| $250,000 | $250,000 | | Married filing separately | $125,000 | $125,000 |
| Tax on unearned income | 2024 | 2025 |
|---|
| Unearned income Medicare contribution tax rate | 3.80% | 3.80% |
| Applies to lesser of (a) net investment income or (b)
modified adjusted gross income exceeding | 2024 | 2025 |
|---|
| Individuals | $200,000 | $200,000 | | Married filing jointly
| $250,000 | $250,000 | | Married filing separately | $125,000 | $125,000 |
Nanny tax
| Compensation threshold | 2024 | 2025 |
|---|
| Domestic employee coverage threshold | $2,700 | $2,800 |
Personal exemption amount
| Amount | 2024 | 2025 |
|---|
| Personal exemption amount | N/A
| N/A
|
| Married filing jointly | 2024 | 2025 |
|---|
| Phaseout threshold amount | N/A
| N/A
| | Completed phaseout amount after | N/A
| N/A
|
| Head of household | 2024 | 2025 |
|---|
| Phaseout threshold amount | N/A
| N/A
| | Completed phaseout amount after | N/A
| N/A
|
| Unmarried | 2024 | 2025 |
|---|
| Phaseout threshold amount | N/A
| N/A
| | Completed phaseout amount after | N/A
| N/A
|
| Married filing separately | 2024 | 2025 |
|---|
| Phaseout threshold amount | N/A
| N/A
| | Completed phaseout amount after | N/A | N/A |
"Saver's Credit"
| Elective Deferrals and IRA or ABLE Contributions by Certain
Individuals | 2024 | 2025 |
|---|
| Maximum credit amount | $1,000 | $1,000 |
| Applicable percentage of 50% applies to AGI | 2024 | 2025 |
|---|
| Joint Return | $0 - $46,000 | $0 - $47,500 | | Head of Household | $0 - $34,500 | $0 - $35,625 | | Other | $0 - $23,000 | $0 - $23,750 |
| Applicable percentage of 20% applies to AGI | 2024 | 2025 |
|---|
| Joint Return | $46,001 - $50,000 | $47,501 - $51,000 | | Head of Household | $34,501 - $37,500 | $35,626 - $38,250 | | Other | $23,001 - $25,000 | $23,751 - $25,500 |
| Applicable percentage of 10% applies to AGI | 2024 | 2025 |
|---|
| Joint Return | $50,001 - $76,500 | $51,001 - $79,000 | | Head of Household | $37,501 - $57,375 | $38,251 - $59,250 | | Other | $25,001 - $38,250 | $25,501 - $39,500 |
| Applicable percentage of 0% applies to AGI | 2024 | 2025 |
|---|
| Joint Return | Over $76,500 | Over $79,000 | | Head of Household | Over $57,375 | Over $59,250 | | Other | Over $38,250 | Over $39,500 |
Standard deductions
| Amounts | 2024 | 2025 |
|---|
| Married filing jointly or surviving spouse | $29,200 | $30,000 | | Head of household | $21,900 | $22,500 | | Unmarried | $14,600 | $15,000 | | Married filing separately | $14,600 | $15,000 | | Dependent--Standard deduction cannot exceed the greater
of: | $1,300 or $450 + earned income | $1,350 or $450 + earned income | | Additional deduction for aged or blind (single or head of
household) | $1,950 | $2,000 | | Additional deduction for aged or blind (all other filing
statuses) | $1,550 | $1,600 |
Standard mileage rates
| Applicable rates
| 2024 | 2025 |
|---|
| Use of auto for business purposes (cents per mile) | $0.67 | $0.70 | | Use of auto for medical purposes (cents per
mile) | $0.21 | $0.21 | | Use of auto for moving purposes (cents per mile) | $0.21 | $0.21 |
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