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IRS Announcement – Major Tax Changes Coming In 2025, Affecting Millions Of Americans

Carbon copies accompanied the implementation of Direct File In testing, normal 8 ½ by 11-inch sized papers were used.

By 2024, Direct file was open for members of the communities in the twelve states, including Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas and Washington States, and Wyoming provided that one was a resident, had a job and lived in the particular state All of 2023.

The program will, however, be added in Alaska, Connective, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania and Wisconsin in the year 2025, thus conducting 24 states in the nation where the program is conducting. In this regard, to use it, the same rule that was earlier: the person needs to have lived and worked in these states in 2024.

Over 140000 taxpayers utilized the service to file federal taxes for free during the fiscal year 2024. After filing the federal tax return, it contacted the free tax filing tool of 31 states, and since the number of states has doubled in 2025, the program must be helping many more taxpayers. The IRS Commissioner Danny Werfel has shown much interest in the expansion, saying that,

‘We are optimistic with the enhancements to Direct File, and millions of new taxpayers will now qualify for the service this year. Tax Filing services must be aimed at improving the experience of tax inbound operations and enabling taxpayers to complete their tax duties efficiently.

The idea is to increase the number of states being added every year in addition to the functions that the program provides in order to allow for as many a number of taxpayers as possible to get a favorable experience come taxation time.

New Tax Brackets for 2025

For the tax year 2025, the IRS will implement new income tax brackets. The top tax rate of 37% will apply to single filers earning over $626,350 and married couples filing jointly with incomes exceeding $751,600. The lowest tax rate of 10% will be applicable to individuals earning up to $12,000 and married couples earning up to $24,000.

Here’s a breakdown of the new tax brackets:

Tax Rate Single Filers Married Filing Jointly
37% > $626,350 > $751,600
35% > $250,525 > $501,050
32% > $197,300 > $394,600
24% > $103,350 > $206,700
22% > $48,475 > $96,950
12% > $11,925 > $23,850
10% ≤ $11,925 ≤ $23,850

These adjustments reflect an increase from the previous year’s brackets and are intended to help taxpayers retain more of their earnings amid rising costs.

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