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8697 Form December

8697 Form December

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back the IRS has announced new federal income tax brackets and standard deductions for next year the new policies kick in at the start of the new year and will apply to income earned in 2025 for the returns filed in 2026 oh I love taxes our friend and invested media editor and chief Caleb silver joins us now to break down the changes of what it means for your wallet good morning okay so the IRS raised the income thresholds for each tax bracket but at a smaller percentage than in recent years that's because inflation overall is cooling I suppose that's right 2.8% which is the small adjustment in several years ago and this applies to next year's filings or for this year when you'll file taxes in 2025 2.8% last year 5.4% given how high inflation was in 2023 7% so what are they doing they adjust the income brackets so we don't get what we call bracket creep you need to make more and the more you make above your tax bracket the more you'll pay

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