×

New 2025 Tax Brackets Could Mean More Money in Your Pocket – See What’s Changed

As the 2025 tax season gets underway, millions of Americans are gearing up to file their returns. This year brings some important updates, including changes to tax brackets and improvements to the IRS’s “Where’s My Refund?” tool that can help taxpayers track their refund status faster and more accurately.

How to Track Your Refund in 2025

The IRS’s “Where’s My Refund?” tool, available on both the IRS website and the IRS2Go mobile app, has been upgraded to give users better visibility into their refund process. When you check your refund status, you’ll see updates in three key stages:

  1. Return Received: Confirmation that the IRS has your return and is processing it.
  2. Refund Approved: The refund amount has been confirmed, and your payment is being prepared.
  3. Refund Sent: Your money is on its way—either deposited directly into your bank account or sent by mail.

To use this tool, you’ll need a few details handy: your Social Security number or Individual Taxpayer Identification Number (ITIN), your filing status, and the exact amount of the refund as listed on your tax return. Keep in mind that the IRS updates refund statuses once a day, typically overnight.

How Long Will It Take to Get Your Refund?

If you file electronically and choose direct deposit, you could see your refund within 21 days. However, paper returns and mailed refund checks may take longer to process. To speed things up, the IRS strongly recommends filing online and opting for direct deposit.

2025 Tax Brackets: What’s New This Year?

The IRS has made inflation-based adjustments to the 2025 tax brackets, which could reduce how much you owe. These changes help prevent “bracket creep,” a situation where inflation pushes you into a higher tax bracket without an actual increase in your purchasing power.

Here’s a breakdown of the new tax brackets:

For Single Filers:

  • 10%: Up to $11,925
  • 12%: $11,925 to $48,475
  • 22%: $48,475 to $103,350
  • 24%: $103,350 to $197,300
  • 32%: $197,300 to $250,525
  • 35%: $250,525 to $626,350
  • 37%: Over $626,350

For Married Couples Filing Jointly:

  • 10%: Up to $23,850
  • 12%: $23,850 to $96,950
  • 22%: $96,950 to $206,700
  • 24%: $206,700 to $394,600
  • 32%: $394,600 to $501,050
  • 35%: $501,050 to $751,600
  • 37%: Over $751,600

These adjustments mean that you might fall into a lower tax bracket even if your income hasn’t changed much. For example, single filers won’t hit the top tax rate of 37% unless they earn more than $626,350—up from last year’s threshold of $600,000.

Standard Deduction Increases in 2025

The IRS also increased the standard deduction to account for inflation, which could lead to lower taxable income for many. Here are the new standard deduction amounts:

  • Single Filers: $15,000 (up from $14,600)
  • Married Filing Jointly: $30,000 (up from $29,200)
  • Heads of Household: $22,500 (up from $21,900)

The higher standard deduction may make it more beneficial for taxpayers to skip itemizing and opt for the standard deduction instead, simplifying the filing process.

Tips to Maximize Your Tax Refund

  • File Electronically: E-filing can speed up processing times.
  • Choose Direct Deposit: It’s the fastest way to receive your refund.
  • Double-Check Your Return: Errors can delay your refund.

By staying on top of these changes, you can make the 2025 tax season less stressful and possibly save money. Be sure to file early, and don’t forget to take advantage of the IRS’s upgraded refund tracking tools to see when your money is on its way!

Leave a Reply

Your email address will not be published. Required fields are marked *