Wondering tax law changes happened in 2025 that may impact your small business? Understanding these changes is crucial for compliance and optimizing your tax strategy. Here’s what you need to know:
- New Tax Brackets for 2025: The updated tax brackets for 2025 are as follows:
- 10%: Up to $11,000 for individuals, $22,000 for married couples filing jointly.
- 12%: $11,001 to $44,725 for individuals, $22,001 to $89,450 for married couples filing jointly.
- 22%: $44,726 to $95,375 for individuals, $89,451 to $190,750 for married couples filing jointly.
- 24%: $95,376 to $182,100 for individuals, $190,751 to $364,200 for married couples filing jointly.
- 32%: $182,101 to $231,250 for individuals, $364,201 to $462,500 for married couples filing jointly.
- 35%: $231,251 to $578,125 for individuals, $462,501 to $693,750 for married couples filing jointly.
- 37%: Over $578,125 for individuals, over $693,750 for married couples filing jointly.
- Deductions and Credits for 2025: In 2025, small businesses can benefit from new deductions and credits, including the Green Energy Credit for sustainable practices and the Digital Transformation Deduction for investing in technology upgrades. These incentives can help reduce your tax liability.
- Late Filing Penalties: In 2025, the penalty for late filing your business tax return is typically 5% of the unpaid taxes for each month or part of a month that the return is late, up to a maximum of 25% of the unpaid taxes. *Please note, this is not a new change but new business filers should be aware of late and non-filing penalties applicable to their small business returns.
Consultation with Tax Professionals: Consider consulting with a tax professional to navigate these changes effectively and take advantage of any benefits. Genesis Accounting Solutions offers tax filing for many different types of businesses across many industries throughout the United States. Visit our Home page to contact us and get a quote for the services you need.