Wolters Kluwer predicts inflation-related adjustments for US taxpayers in 2025

A recent report from Wolters Kluwer Tax & Accounting projects inflation-adjusted figures for the US tax year 2025. Based on the latest Consumer Price Index data from the US Department of Labor, the report anticipates adjustments in tax brackets, standard deductions, and alternative minimum tax amounts. Confirmation of the exact values by the Internal Revenue Service is expected later in the year. Wolters Kluwer's projections include adjusted individual tax brackets for various filing statuses, including married taxpayers filing jointly, heads of households, and single taxpayers. The projected changes take into account different taxable income levels, with the potential standard deduction ranging from $15,000 for single individuals to $30,000 for married taxpayers filing jointly. Significant adjustments listed in the report include increases in individual tax rates and standard deductions. For example, the threshold for the 10% tax rate for single taxpayers is expected to rise to $11,925, while the threshold for the top 37% tax bracket will begin at $626,350. These represent increases of $325 and $17,000 compared to 2024, respectively. The standard deduction is also expected to increase: for single taxpayers to $15,000 and for joint filers to $30,000—an increase of $400 and $800 over the previous year, respectively. Additionally, the estate tax exemption is projected to reach $13.99 million, while the annual gift tax exclusion is expected to rise to $19,000. The report highlights that more than 60 provisions in the tax code are subject to inflation-related adjustments. Moreover, limits for retirement plans are subject to a separate computation of inflation adjustments. In parallel, Wolters Kluwer TAA recently updated its CCH Axcess Audit Suite to optimize professional audit processes with advanced features. The latest version of the cloud-based platform aims to improve efficiency, accuracy, and integration across various audit functions.