Cross References

  • Rev. Proc. 2024-40
  • Notice 2024-80

Each year, a number of provisions in the Internal Revenue Code (IRC) are adjusted for inflation. The IRS recently released the inflation adjusted amounts for 2025. The following chart highlights a number of these adjustments, as they compare to the 2023 and 2024 amounts. A complete list will appear in Tab 1 of the 1040/Deluxe Editions of TheTaxBook.

Tax Provision 2025 2024 2023 Standard deduction – MFJ/QSS $30,000 $29,200 $27,700 Standard deduction – Single/MFS $15,000 $14,600 $13,850 Standard deduction – HOH $22,500 $21,900 $20,800 Qualifying relative income limit $5,200 $5,050 $4,700 Maximum EIC for 3 or more qualifying children $8,046 $7,830 $7,430 Maximum EIC for 2 qualifying children $7,152 $6,960 $6,604 Maximum EIC for 1 qualifying child $4,328 $4,213 $3,995 Maximum EIC for no qualifying children $649 $632 $600 Section 179 expense limit $1,250,000 $1,220,000 $1,160,000 Section 179 investment limit $3,130,000 $3,050,000 $2,890,000 Section 179 SUV limit $31,300 $30,500 $28,900 Estates basic exclusion amount $13,990,000 $13,610,000 $12,920,000 Annual exclusion for gifts $19,000 $18,000 $17,000 Defined contribution plan contribution limit $70,000 $69,000 $66,000 401(k) elective deferral limit for under age 50 $23,500 $23,000 $22,500 401(k) elective deferral limit for age 50 and older $31,000 $30,500 $30,000 401(k) elective deferral limit for ages 60 thru 63 $34,750 $30,500 $30,000 SIMPLE elective deferral limit for under age 50* $16,500 $16,000 $15,500 SIMPLE elective deferral limit for age 50 and older* $20,000 $19,500 $19,000 SIMPLE elective deferral limit for ages 60 thru 63* $21,750 $19,500 $19,000 IRA deduction limit for under age 50 $7,000 $7,000 $6,500 IRA deduction limit for age 50 and older $8,000 $8,000 $7,500 Qualified plan compensation limit $350,000 $345,000 $330,000 Child Tax Credit (per qualifying child) $2,000 $2,000 $2,000 Refundable portion of child tax credit $1,700 $1,700 $1,600 QBI Threshold Amount – MFJ $394,600 $383,900 $364,200 QBI Threshold Amount – Single & HOH $197,300 $191,950 $182,100 QBI Threshold Amount – MFS $197,300 $191,950 $182,100 Foreign Earned Income Exclusion $130,000 $126,500 $120,000 * SIMPLE elective deferrals are increased to 110% of limit if no more than 25 employees, or if a large employer elects a higher matching percentage (effective beginning in 2024).