As we gear up for the 2025 tax season, it is crucial for taxpayers to stay informed about the latest updates to federal tax laws. At Millhouse Accounting, we are dedicated to helping our clients in Green Bay and surrounding areas understand these changes and make informed decisions. Whether you are an individual filer or a small business owner, proper tax prep is key to minimizing your tax liability and maximizing your return.
Adjustments to Income Tax Brackets: In 2025, the IRS has adjusted tax brackets to reflect inflation. These annual updates aim to reduce the tax burden caused by rising living costs. Many taxpayers may find their income falling into slightly different brackets, impacting their withholding rates and refund expectations. Residents of De Pere should take this opportunity to review their pay stubs and ensure their withholding amounts align with these changes. A quick check now can help avoid surprises come filing time.
Expanded Family Tax Credits: For families, the 2025 tax year includes enhancements to several key tax credits. The Child Tax Credit remains robust at $2,000 per qualifying child under age 17, with higher income phase-out thresholds. Additionally, the Earned Income Tax Credit has increased, offering more relief to low- and middle-income families. Millhouse Accounting’s team of experts ensures clients claim all eligible credits. If you are in Green Bay or nearby, our personalized tax prep services will help you navigate these credits and maximize your refund.
Increased Standard Deduction: The IRS has raised the standard deduction amounts for 2025 to account for inflation. Single filers can now claim $14,800, up from $14,600 in 2024, while married couples filing jointly see an increase to $29,600. This adjustment benefits those who do not itemize deductions. For our De Pere clients, we evaluate whether itemizing, especially for medical expenses, mortgage interest, or charitable contributions, might yield more significant savings than the standard deduction.
Retirement Contribution Limits and Benefits: Taxpayers saving for retirement in 2025 can contribute even more to their retirement accounts. 401(k) contribution limits have risen to $23,500 for individuals under 50 and $31,000 for those 50 and older, including catch-up contributions. Traditional and Roth IRA contribution limits have also increased. Effective retirement planning is a cornerstone of solid tax prep, particularly for those planning their golden years in Green Bay. By maximizing contributions, you can reduce your taxable income and build a financially secure future.
Updates for Small Businesses: Small business owners in De Pere and the Green Bay area have several key updates to watch for in 2025. The Section 179 deduction for equipment purchases has increased, offering more flexibility for businesses looking to invest in technology or machinery. Additionally, changes to Qualified Business Income deduction calculations could impact tax savings for LLCs, S-Corps, and sole proprietors. Mileage rates for business travel and expanded tax credits for hiring workers in specific industries are also part of the updates. Millhouse Accounting is here to help local businesses navigate these changes and ensure their tax strategies align with the latest regulations.
Professional Tax Prep is More Important Than Ever: With so many changes to consider, professional guidance can make a world of difference. At Millhouse Accounting, we are proud to serve Green Bay, De Pere, and the surrounding communities with expert, personalized tax services. Our team stays up-to-date on all IRS updates to ensure your taxes are filed accurately and on time. Ready to tackle the 2025 tax season? Contact Millhouse Accounting today to schedule your appointment. With our help, you can rest easy knowing your taxes are in good hands. Let us make this tax season your most stress-free yet.
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