Overview
On October 22, 2024 the IRS announced the annual inflation adjustments for tax year 2025. Rev. Proc. 2024-40 states that if the Code is amended for 2025 after October 22, 2024, taxpayers should consult additional guidance.
What has changed?
Previous rule
Original 2025 basic standard deduction in Rev. Proc. 2024-40: $15,000 (single), $22,500 (head of household), $30,000 (married filing jointly).
New rule
Superseded: after the One Big Beautiful Bill Act, Rev. Proc. 2025-32 set the 2025 amounts at $15,750, $23,625 and $31,500.
Who is affected?
Individual taxpayers and businesses using inflation-adjusted tax items for 2025.
When does it take effect?
Applies to tax year 2025.
What this means for you
- Historical: use the updated 2025 amounts in IRS Publication 17 for tax year 2025.
- Rev. Proc. 2025-32 removed the original standard deduction section of Rev. Proc. 2024-40.
Recommended next steps
- Use current IRS publications, not the October 2024 figures, for 2025 returns.
- Check the IRS inflation-adjusted items page for later years.
General educational guidance, not tax advice. Schedule a consultation to discuss your situation.
Important dates
- October 22, 2024Inflation adjustments announced (IR-2024-273)