IRS Increases 2025 Standard Deduction: What It Means for Businesses
By [email protected]
Published On March 25, 2025
The IRS has announced an increase in the standard deduction for the 2025 tax year, providing an opportunity for business owners—particularly sole proprietors and small partnerships—to reassess their tax strategies. For single taxpayers and married individuals filing separately, the standard deduction rises to $15,000, an increase of $400 from 2024. For married couples filing jointly, it increases to $30,000, up by $800. Heads of households will see an increase to $22,500, a $600 rise from the previous year. The Telegraph+3AP News+3GMS+3NerdWallet: Finance smarter+7The Telegraph+7AP News+7
While this change primarily affects individual taxpayers, it also has implications for business owners who report business income on their personal tax returns. The increased standard deduction may influence decisions regarding pass-through income, deductions, and overall tax liability. It’s an opportune time to revisit your business structure and ensure you’re optimizing every available benefit.Tax Planner for Accountants
At PAMC, we specialize in helping clients navigate these adjustments. Our tax experts can guide you through the implications of the new standard deduction, helping you align your tax planning strategies with the latest regulations.
Don’t wait until filing season. Contact PAMC today to develop a proactive plan that positions you for financial efficiency and compliance in the upcoming tax year.
