As the 2025 tax season kicks off, it’s time to get organized and up to speed with the latest updates to federal and Maryland state tax laws.
Whether you’re a seasoned filer or preparing to tackle your taxes for the first time, staying informed can make all the difference in maximizing your refund and avoiding surprises.
This year brings a variety of changes, from higher standard deductions at the federal level to updates in Maryland’s local tax rates.
At JRJ Income Tax Service, we’re here to help you navigate these changes and make filing your taxes as smooth as possible. Let’s break down the key updates so you can file with confidence.
Federal Tax Updates
- Increased Standard Deduction
Good news for taxpayers! The standard deduction has been raised to:
• $15,000 for single filers
• $30,000 for married couples filing jointly
• $22,500 for heads of household
This increase could mean a larger portion of your income is tax-free, reducing your overall tax liability.
- Tax Bracket Adjustments
To account for inflation, the income thresholds for all seven federal tax brackets have been adjusted. This means that even if your income has increased, you might not move into a higher tax bracket.
- Boosted Earned Income Tax Credit (EITC)
Families with three or more qualifying children could qualify for up to $8,046 in EITC, up from $7,830 last year. This credit is a valuable resource for working families, providing significant tax relief.
- Retirement Contribution Limits
Planning for your future just got a little easier! Contribution limits for 401(k) plans have increased to $23,500, allowing you to save more while enjoying tax advantages. IRA limits remain at $7,000, with an additional $1,000 catch-up contribution for those aged 50 and older.
Maryland State Tax Updates
- Local Tax Rate Changes in Southern Maryland
While some Maryland counties are adjusting their tax brackets, Charles, Calvert, St. Mary’s, and Prince George’s counties have kept their local tax rates consistent this year. Residents of Southern Maryland can breathe a sigh of relief knowing there are no new rate increases to navigate.
However, tax rates can vary by county, so be sure to confirm your local rate when preparing your state return.
- Maryland State Tax Brackets
State tax rates range from 2% to 5.75%, depending on income. For instance:
• 2% on the first $1,000 of taxable income
• 5.75% on income over $250,000
Be sure to review your taxable income carefully to determine where you fall.
How JRJ Income Tax Service Can Help
Navigating these updates can be tricky, but that’s where JRJ Income Tax Service comes in. Our experienced team is here to ensure you maximize deductions, understand credits, and avoid surprises. Whether you’re filing as an individual or for your family, we’ll guide you every step of the way.
Don’t wait until April to get started! Schedule your appointment with JRJ Income Tax Service today and let us take the stress out of tax season.