Standard Deduction Increased for 2025
Due to inflation adjustments, the IRS raised the standard deduction amounts for 2025:
2025 Tax Season Officially Opened
The IRS officially launched the 2025 tax season on January 27, 2025.
This year’s filing season features faster processing and enhanced online tools as part of the IRS’s digital modernization efforts.
IRS Launches Improved Online Tools
The IRS expanded the features in online individual accounts, now allowing users to access notices, balances, and transcripts securely.
The “Where’s My Refund?” tool has also been updated for faster and more accurate tracking.
New Crypto Reporting Requirement – Form 1099-DA
Starting in 2025, crypto exchanges will issue Form 1099-DA for reporting digital asset sales.
This aims to close gaps in crypto tax reporting and ensure proper taxation on gains.
Child Tax Credit (CTC) Expanded
The Tax Relief for American Families and Workers Act of 2024 increased refund eligibility for low-income families.
In 2025, the refundable portion of the Child Tax Credit is up to $2,000 per qualifying child.