What You Need To Know as You File Your 2025 Taxes
The 2025 Tax Season is now upon us. Planning and preparation are extremely important to maximize your deductions and reduce your income tax burden. We always aim to provide useful information to assist you in preparing your income tax returns.
Meanwhile, these are the Standard deductions you need to know for 2025:
Single or Married Filing Separate: $ 15,750
Married Filing Jointly: $ 31,500
Head of Household: $ 23,625
Those who are blind or over the age of 65 will receive the following deductions as well:
Married Filing Jointly or Separate: $ 1,600
Single or Head of Household: $ 2,000
What about mileage rates? Here’s what you need to know:
Business: 70 cents per mile
Charitable: 14 cents per mile
Medical: 21 cents per mile
Tax Deductible IRA Contributions for 2025:
Under Age 50: $7,000
Age 50 and Over: $8000
2025 IRA Deduction Phaseout Range – Covered by an Employer Plan
Married Filing Jointly: $126,000 – $146,000
Single or Head of Household: $79,000 – $89,000
Married Filing Separate: $0 – $10,000
Spouse Not Covered: $236,000 – $246,000
2025 Roth Deduction Phaseout Range
Married Filing Jointly: $236,000 – $246,000
Single or Head of Household: $150,000 – $165,000
Married Filing Separate: $0 – $10,000
Long – Term Care Insurance Annual Premium Deduction Limits
| Age | 2025 | 2026 |
| 40 or Less | $480 | $500 |
| 41 – 50 | $900 | $930 |
| 51 – 60 | $1,800 | $1,860 |
| 61 – 70 | $4,810 | $4,960 |
| 71 and Over | $6,020 | $6,200 |
Gift Tax Annual Exclusion
2024: $18,000
2025: $19,000
2026: $19,000
Things to Know for the Tax Year 2026:
- The maximum 401k contribution is now $24,500. If you are over age 50, you can make a catchup contribution of another $8,000. These limits also apply to 403b and 457 plans.
- Catchup contributions for those attaining ages 60 – 63, that amount is $11,250.
- Simple plans have a cap of $17,000 plus a catchup of an additional $4,000 for people over the age 50. The 2026 contribution cap for traditional IRA’s and Roth IRA’s is $7,500 plus $1,100 for individuals over age 50.
- The income ceiling on Roth IRA’s is higher this year. Contributions phase out at adjusted gross income (AGI) of $242,000 to $252,000 for married filing joint. For single or head of household, the amounts are $153,000 to $168,000.
- 2026 deduction phases outs for traditional IRA range from adjusted gross income of $129,000 to $149,000 for married filing joint covered by a 401k, and $81,000 to $91,000 for single and head of household filers.
- If only one spouse is covered by a plan, the phase out for deducting contributions for the uncovered spouse is $242,000 to $252,000.
Remember, the sooner you file, the sooner you will receive your refund. Electronic filing is the optimal method for filing. The deadline for individual tax returns for this filing season for Massachusetts residents is Wednesday, April 15, 2026.
