Required documents to keep on file:

• Copies of Drivers License or State IDs
  Social Security Cards
  Proof of Residence for dependents claiming EIC

 

Income documents:

• Income from jobs: forms W-2 for you and your spouse
• Investment income—various forms 1099 (-INT, -DIV, -B, etc.), K-1s, stock option information
• Income from state and local income tax refunds and/or unemployment: forms 1099-G
• Taxable alimony received
• Business or farming income—profit/loss statement, capital equipment information
• If you use your home for business—home size, office size, home expenses, office expenses
• IRA/pension distributions—forms 1099-R, 8606
• Rental property income/expense—profit/Loss statement, rental property suspended loss information
• Social Security benefits—forms SSA-1099
• Income from sales of property—original cost and cost of improvements, escrow closing statement, cancelled debt information (form 1099-C)
• Prior year installment sale information—forms 6252, principal and Interest collected during the year, SSN and address of payer
• Other miscellaneous income—jury duty, gambling winnings, Medical Savings Account (MSA), scholarships, etc.

How can I check on my tax refunds? Tax Related Web-sites/phone numbers: IRS www.irs.gov IRS Get Refund Status IRS Inquiry Phone: (800) 829-1040

Other tax documents:

• IRA contributions
• Energy credits
• Student loan interest
• Medical Savings Account (MSA) contributions
• Self-employed health insurance payments
• Keogh, SEP, SIMPLE and other self-employed pension plans
• Alimony paid that is tax deductible
• Educator expenses
• State and local income taxes paid
• Real estate taxes paid
• Personal property taxes—vehicle license fee based on value
• Estimated tax payment made during the year, prior year refund applied to current year, and any amount paid with an extension to file.
• Direct deposit information—routing and account numbers
• Foreign bank account information—location, name of bank, account number, peak value of account during the year

Tax deduction documents:

• Child care costs—provider’s name, address, tax id, and amount paid
• Education costs—forms 1098-T, education expenses
• Adoption costs—SSN of child, legal, medical, and transportation costs
• Home mortgage interest and points you paid—Forms 1098
• Investment interest expense
• Charitable donations—cash amounts and value of donated property, miles driven, and out-of-pocket expenses
• Casualty and theft losses—amount of damage, insurance reimbursements
• Medical and dental expenses

Current Tax rates

Current rates information provided by IRS

2025 Tax Brackets

Income Tax Brackets and Rates

The 2025 income ceiling for all listed tax brackets and for all filers adjusted for inflation are listed below. The Seven federal income tax rates for 2025 are… 10% – 12% – 22% – 24% – 32% – 35% – 37% (no changes from 2024). The marginal income tax rate of 37% will apply to taxpayers with taxable income above $626,350 (single filers), and $751,600 is the target for married couples filing jointly…(SEE Table 1)

Table 1. Tax Brackets and Rates, 2025 (Source: IRS)

Rate	Single Individuals – Taxable Income Over	Married Individuals Filing Joint Returns	Heads of Households – Taxable Income Over
10%	Up to $11,925	Up to $23,850	Up to $17,000
12%	$11,925 up to $48,475	$23,850 up to $96,950	$17,000 up to $64,850
22%	$48,475 up to $103,350	$96,950 up to $206,700	$64,850 up to $103,350
24%	$103,350 up to $197,300	$206,700 up to $394,600	$103,350 up to $197,300
32%	$197,300 up to $250,525	$394,600 up to $501,050	$197,300 up to $250,500
35%	$250,525 up to $626,350	$501,050 up to $751,600	$250,500 up to $626,350
37%	At or above $626,350	At or above $751,600	At or above $626,350

Standard Deduction & Personal Exemption

2025 has standard deductions for single filers increasing by $400; $800 for married couples filing jointly. Seniors over the age of 65 are eligible to claim an additional standard deduction of $2,000 for single filers and $1,600 for joint filers. Personal exemptions for 2025 remains at $0 (this is due to the personal exemption from the Tax Cuts and Jobs Act 2017 )

Table 2. 2025 Standard Deduction and Personal Exemption (Source: IRS)

Filing Status	Deduction Amount
Single	$15,000
Married Filing Jointly	$30,000
Head of Household	$22,500
Married Seniors Additional Deductions	$1,600
Unmarried Seniors Additional Deductions	$2,000

Alternative Minimum Tax

Created in the 1960s, The Alternative Minimum Tax (AMT) was set up to prevent high-income taxpayers from avoiding the individual income tax. This parallel tax income system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the two. More information can be found at IRS.Gov (SEE Table 3).

Table 3. 2025 Alternative Minimum Tax Exemptions (Source:IRS)

Filing Status	Exemption Amount
Unmarried Individuals	$88,100
Married Filing Jointly	$137,000

 

2025 keeps the AMT rate at 28%. This rate applies to excess AMTI of $239,100 for all taxpayers ($119,550 for married couples who file separate returns).

The AMT exemptions phase out at 25 cents per dollar earned once a taxpayers AMTI hits a certain threshold. In 2025, the exemption will start phasing out at $626,350 in AMTI for single filers and $1,252,700 for married taxpayers filing jointly (SEE Table 4).

 

Table 4. 2025 Alternative Minimum Tax Exemption Phaseout Thresholds

Filing Status	Threshold
Unmarried Individuals	$626,350
Married Filing Jointly	$1,252,700

 

Earned Income Tax Credit

The 2025 Maximum Earned Income Tax Credit (EITC) for single and joint filers is $649 (no children) (SEE Table 5). The maximum credit is $4,328 for one child, $7,152 for two children, and $8,046 for three or more children.

Table 5. 2025 Earned Income Tax Credit Parameters

Filing Status       Single or Head of Household               No Children           One Child           Two Children               Three or More  Children

Income at Max Credit                                   $8,490                      $12,730                $17,880                                  $17,880

Maximum Credit                                              $649                        $4,328                    $7,152                                  $8,046

Phaseout Begins                                              $10,620                   $23,350                 $23,350                                $23,350

Phaseout Ends                                                  $19,104                    $50,434                    $57,310                             $61,555 (Credit Equals Zero))

Filing Status    Married Filing Jointly                               No Children              One Child             Two Children             Three or More

Income at Max Credit                                       $8,490                      $12,730                   $17,880                         $17,880

Maximum Credit                                              $649                          $4,328                       $7,152                              $8,046

Phaseout Begins                                               $17,730                     $30,470                    $30,470                           $30,470

Phaseout Ends                                                  $26,214                    $57,554                    $64,430                           $68,675                                                     (Credit Equals Zero)

 

Qualified Business Income Deduction

Within the Tax Cuts and Jobs Act, there is an inclusion of a 20% deduction in 2025 for pass-through businesses with $197,300 of qualified business income for single taxpayers and $394,600 for married taxpayers filing jointly (SEE Table 6).

 

Table 6. 2025 Qualified Business Income Deduction Thresholds (Source: IRS)

Filing Status	Threshold
Unmarried Individuals	$197,300
Married Filing Jointly	$394,600

WHEN IN DOUBT, DON’T THROW IT OUT