Every year, the Internal Revenue Service (IRS) changes a lot of things to keep up with rising prices, inflation, and the cost of living.
Some things have not been changed, though. You may have already seen the big changes that will happen in the 2025 tax year. Here are some things that will stay the same.
Keep in mind that some things that were adjusted for inflation in the past are not being changed right now because they are required not to be by law. Truth be told, there are three important things that have not changed.
IRS items that will not change in the 2025 tax year
To begin, the itemized benefits will stay the same. For the 2025 tax year, the personal allowances will also not change. Learning points for life will be the third thing that does not change.
Let us look at them to see what the numbers are now.
Itemized deductions: As with the 2024 tax year, “there is no limitation on itemized deductions.” Keep in mind that the cap on itemized deductions was taken away in 2027. Because of the Tax Cuts and Jobs Act of that year. In other words, it has not changed since 2018.
IRS personal exemptions and Lifetime learning credits
Personal deductions have also stayed the same. They will be $0 for the 2025 tax year, the same as they were for the 2024 tax year. This is another example of how the 2017 Tax Cuts and Jobs Act got rid of something.
Lifetime learning credits: Just so you know, the Lifetime Learning Credit is phased out for workers whose modified adjusted gross income is more than $160,000 for married couples and $80,000 for single people.
For tax years beginning after December 31, 2020, the modified adjusted gross income amount that American taxpayers use to see the decrease in LLC is not changed for inflation.
Also, if you have not already, you should check to see what has changed.