Key 2025 Tax Updates for Individuals

As the holidays wind down, it’s the perfect time to look ahead to what’s next – tax season. The IRS has announced several updates for 2025 that could impact your return: the standard deduction increased, so did 401(k) and HSA contribution limits, as well as child tax credits.

You’ll also want to gather records for charitable donations, medical expenses, and any home energy improvements, as many of these can qualify for deductions or credits. If you experienced major life changes this year – like buying a home, starting a side business, or expanding your family – those events could affect your withholding or credit eligibility.

Getting an early start helps ensure you don’t leave money on the table and gives us more time to identify potential savings opportunities. We recommend beginning your document collection in January so we can file accurately and efficiently once the IRS opens for submissions.