IRS announces new federal tax brackets for 2025

The IRS has announced new federal income tax brackets and standard deductions for next year. The new policies start in the new year and will be applied to income earned in 2025 for returns filed in 2026. Editor-in-Chief at Investopedia Caleb Silver explains what this means for your wallet.

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#IRS #TaxBrackets #Taxes

[wsol]

In 1965 median CEO salaries were 20 times their average worker's salaries. In 2023 median CEO pay is 196 times their average worker's salaries. The rich give themselves plenty. They don't need additional tax cuts.

[michaeleli]

We give them MONEY
They give us DEBT 💸

[Joegolberg]

Small taxes can affect investment decisions such as whether to choose tax-free municipal bonds over taxable bonds or do a Roth IRA conversion. I’ve been sitting on over $745K equity from a home sale and I want to invest on the stock market, how do I achieve this without being taxed twice?

[marguritetheodore]

The thing about most of these taxes especially Investment ones is that there are a lot of loopholes and literally a lot of money can be saved on them but most people take the passive and conventional approach, which are the "easiest" but way more expensive solutions

[joekev]

Majority of us would be fine paying taxes if we felt they actually went to helping the community instead of going straight into the wallets of government officials that do nothing.

[richcampus]

Abolish offshore tax havens. Trillions drained from countries all across the globe floating out to sea.

[PrtoPoTaT]

Inflation is cooling but everything is still expensive. Weird.

[RedorblueDontcareaboutyou]

The more you make the more they take. “New theft brackets” fixed it for you.

[esthersdaughterlong]

Are you kidding? Recession cooling? Couldn't be farther from the truth.

[duncandonuts_gi]

The top federal income tax rate was 91% for much of the 1950s. However, this figure is a bit misleading regarding what the wealthy paid. The Tax Foundation explains that the 91% tax rate is only applied to incomes over $200, 000, about $2 million in today's dollars.

[wsol]

When it comes to taxes, rich people want to keep 90% of the food at the table for themselves and still expect the whole party to split the bill evenly.

[JayTee]

I earned $150, 000 last year and paid $40, 000 in federal and state taxes. Still owed the federal $9 and got $600 state tax return in 2023. 🤦‍♂️🤦‍♂️.

[TheSaltySunflower]

Oh awesome, can't wait to be poorer next year. Maybe for Christmas I'll get an orange and a stick.

[uhhmon]

Renew the Trump tax cuts and do not tax unrealized capital gains for the wealthy!

That will lead to more layoffs

[thewebdiva]

Yes, but about the workers who didn’t get a raise?

[edruttledge]

Oligarchs get to pay no taxes and then brag about it. They also do not serve time when convicted...

[SkylarPixel]

2.8% yet inflation was 20% for the last 3.5 years. 😂😂😂

[KellyMorris-er]

15% across the board, for everyone except those who are below the poverty level.
Corporations are people Too,
No Exemptions All Pay 15%.
We would need fewer IRS Government workers.
Trump promised Income Tax Cuts and this is the best solution. We would be able to pay for Social Security, money that you, and your parents are owed.
We would be able to pay for Medicare. Hospitals and physicians for the elderly. This is Care that was Earned. This is the Care plan for all of U.S.

[Sidicas]

Last 5 years average inflation increase 4.76% per year. Last 5 year, average tax bracket range increased only 2.58%. Tax relief is not keeping up with inflation. We only paying more and more inflation adjusted taxes every year.

[Matt-ktnm]

The jump from 12% to 22% happens way too early on the income scale. 48k is still struggling. Why put such a big jump there?