Helpful Info for This Year’s Taxes

Tackle this year’s taxes with our 2025 Handy Tax Guide, prepared by the CPAs of Dugan + Lopatka. This quick, simple reference has helpful info on current tax rates, deductions, depreciation limits, and more.

For additional guidance, contact our Chicagoland CPAs today.

This guide reflects tax laws in effect as of 1/1/25.

• Individual Income Tax Rates

  Married Taxpayers Filing Jointly or Surviving Spouses

  Taxable Income Over	But Not Over	Is Taxed At
  $0	$23,850	10%
  $23,850	$96,950	12%
  $96,950	$206,700	22%
  $206,700	$394,600	24%
  $394,600	$501,050	32%
  $501,050	$751,600	35%
  $751,600		37%

  Single Taxpayers

  Taxable Income Over	But Not Over	Is Taxed At
  $0	$11,925	10%
  $11,925	$48,475	12%
  $48,475	$103,350	22%
  $103,350	$197,300	24%
  $197,300	$250,525	32%
  $250,525	$626,350	35%
  $626,350		37%

  Heads of Households

  Taxable Income Over	But Not Over	Is Taxed At
  $0	$17,000	10%
  $17,000	$64,850	12%
  $64,850	$103,350	22%
  $103,350	$197,300	24%
  $197,300	$250,500	32%
  $250,500	$626,350	35%
  $626,350		37%

  Estates & Trusts

  Taxable Income Over	But Not Over	Is Taxed At
  $0	$3,150	10%
  $3,150	$11,450	24%
  $11,450	$15,650	35%
  $15,650		37%

  Alternative Minimum Tax

  Tax Rate on AMTI	26% up to	$232,600
  	28% over	$232,600

  	Exemption Amount	Phase-Out Threshold
  Married Filing Jointly	$137,000	$1,252,700
  Married Filing Separately	$68,500	$626,350
  All Individual Tax Payers	$88,100	$626,350

• Deductions & Exemptions

  	Standard Deduction*	Elderly or Blind*
  Married Filing Jointly	$30,000	$1,600
  Single	$15,000	$2,000
  Head of Household	$22,500	$2,000
  Married Filing Separately	$15,000	$1,600
  Dependent of Another	greater of $1,350 or $450 plus sum of earned income

  *You are allowed to deduct the greater of your standard deduction or your itemized deductions.

  Personal Exemptions - Repealed Deduction Limitations

  Section 199A Qualified Business Income Deduction: 20% of domestic qualified business income (multiple limitations apply).

  Medical & Dental Expenses: Excess over 7.5% AGI.

  State & Local Taxes: $10,000 maximum deduction.

  Mortgage Interest Deduction: Limited to $750,000 of principal for post 12/15/17 acquisition indebtedness.

  Deductions Repealed (as of Jan 1, 2018)
  • Miscellaneous itemized deductions
  • Interest on home equity indebtedness
  • Moving expenses
  Credits

  Tax credits of $2,000 per child and $500 per non-child dependent begin to phase out for taxpayers with modified adjusted gross income exceeding $400,000 for joint and $200,000 for single filers.

• Estimated Tax Payments

  To avoid possible underpayment penalties, you are generally required to pay in through withholding or estimated tax payments the lesser of:

  1. One hundred percent of prior-year tax liability, (110% if AGI >$150,000) or,
  2. Ninety percent of current-year tax liability.
  2025 Estimated Tax Payments for Individuals are due by:
  • April 15, 2025
  • June 16, 2025
  • September 15, 2025
  • January 15, 2026

• Net Investment Income Medicare Surtax

  The net investment income surtax on individuals equals 3.8% of the lesser of:

  • Net investment income*, or
  • The excess, if any, of
  • The individual’s modified adjusted gross income, over the threshold amount.

  Filing Status	Threshold Amount
  Married Filing Jointly	$250,000
  Married Filing Separately	$125,000
  Single, Head of Household	$200,000

  *Common types of “net investment income” include interest, dividends, annuities, royalties, rents, net capital gain on investments, passive activities.

• Capital Gain & Qualified Dividend Tax Rates for Noncorporate Taxpayers

  Single Taxpayer	Married Filing Jointly	Capital Gain Tax Rate*	Net Investment Income Medicare Surtax**	Combined Tax Rate
  $0-$48,350	$0-$96,700	0%	0%	0%
  $48,351-$200,000	$96,701-250,000	15%	0%	15%
  $200,001-$533,400	$250,001-$600,050	15%	3.8%	18.8%
  $533,401	$600,051	20%	3.8%	23.8%

  * Short-term capital gains (held less than 12 months) are taxed at the same rate as ordinary income, gains on collectibles (including metals) are taxed at 28%, recapture gains on real estate are taxed at 25%.

  ** The 3.8% Net Investment Income Medicare surtax only applies to “net investment income” as defined in IRC 1411.

• Estate Tax Rates

  The estate tax and gift tax exemption for 2024 is $13.99 million. The estate and gift tax rate on amounts in excess of $13.99 million is 40%. The estate tax exemption is portable between spouses resulting in a $27.98 million exemption per couple regardless of ownership of assets.

  Annual Gift Tax Exclusion

  Gifts per person, $19,000

  Joint gifts by spouses, $38,000

• Business Provisions

  • Corporate income taxed at a flat rate of 21%.
  • Federal Net Operating Loss deduction limited to 80% of taxable income.
  • Illinois Net Operating Loss deduction limited to $500,000.

• Employment Tax Rates

  Employer	Tax Rate	Wage Base
  Social Security	6.20%	$176,100
  Medicare	+1.45%	No Limit
  	=7.65%
  Employee	Tax Rate	Wage Base
  Social Security	6.20%	$176,100
  Medicare	+1.45%	No Limit
  	=7.65%
  Self Employed	Tax Rate	Wage Base
  Social Security	12.40%	$176,100
  Medicare	+2.90%	No Limit
  	=15.30%

  *Additional 0.9% Medicare tax is imposed on individuals who receive wages or self-employment income in excess of $200,000 ($250,000 for joint return, $125,000 for married filing separate).

• Depreciation/Amortization

  • 3 – Year Assets (200% DB) Dies, molds, small tools
  • 3 – Year Assets (Straight-line) Computer software (if separately stated from hardware)
  • 5 – Year Assets (200% DB) Autos, light-/heavy-duty trucks, computers, typewriters, copiers, medical equipment, construction equipment, wholesale/retail equipment, private aircraft, some manufacturing equipment
  • 7 – Year Assets (200% DB) Most manufacturing equipment, office furniture, printing equipment
  • 15 – Year Assets (Straight-line) Intangible assets including goodwill, going concern value and covenants not to compete. Qualified improvement property
  • 27.5 – Year Assets (Straight-line) Rental houses, apartments, low-income housing
  • 39 – Year Assets (Straight-line) Commercial and industrial buildings, office buildings, shopping centers, warehouses, manufacturing facilities
  Annual Recovery

  Percent of Original Depreciable Basis Under 200% DB Method

  Recovery Year	1	2	3	4	5	6	7	8
  Class
  3 Year	33.33	44.45	14.81	7.41
  5 Year	20.00	32.00	19.20	11.52	11.52	5.76
  7 Year	14.29	24.49	17.49	12.49	8.93	8.92	8.93	4.46

  Section 179 Expense Deduction

  Small Business taxpayers may elect to expense $1.25 million of certain new or used qualifying depreciable property placed in service in tax year 2024. Deduction is phased-out if the cost of qualifying property placed in service during the year exceeds $3.13 million.

  Special (Bonus) Depreciation Allowance

  Bonus depreciation allowance can be claimed for qualified property placed in service:

  • 60% for 2024
  • 40% for 2025
  • 20% for 2026
  • 0% for 2027
  2025 Standard Mileage Deductions
  • Business, $0.70 per mile
  • Charitable, $0.14 per mile
  • Medical or moving purposes for qualified active duty members of the Armed Forces, $0.21 per mile

• Retirement Plan Limits

  Individual Limitations

  	Under Age 50	Age 50 & Up
  IRA	$7,000 (a)	$8,000 (a)
  Roth IRA	$7,000 (b)	$8,000 (b)
  401(k)/SARSEP Salary Deferrals	$23,500	$31,000
  SIMPLE Plans	$16,500	$20,000

  Profit Sharing Plans
  • Corporate, 100% up to $70,000 (c)
  • SEP – self-employed, 20% up to $70,000 (d)
  • SEP – employee, 25% up to $70,000

  (a) Phaseout for deducting IRA contributions (qualified plan participants):

  • Joint: $126,000 – $146,000 AGI
  • Single or HOH: $79,000 – $89,000 AGI

  (b) Phaseout of Roth contribution eligibility:

  • Joint: $236,000 – $246,000 AGI
  • Single or HOH: $150,000 – $165,000 AGI

  (c) Overall plan is limited to 25% of total compensation of all eligible employees (capped at $350k per employee).

  (d) Of net self-employed income after 1/2 self-employment tax deduction (capped at $350k per employee).

  *401k special catchup contributions of $11,250 (total $34,750) and for SIMPLE plans of $5,250 (total $21,750) for individuals aged 60 to 63.

• Social Security Benefits

  Maximum earned income limit:

  	Annual	Monthly
  Ages 62-65 years	$23,400	$1,950
  Months before individual reaches age 66	$62,160	$5,180
  Months after age 66	No Limit	No Limit

• Taxable Social Security

  Social Security received is taxable if AGI, plus tax-exempt interest, plus one-half of Social Security received, exceeds these base amounts:

  The taxable amount is the lesser of:
  a. Percent of the excess over the base amount, or
  b. 85% of benefit received

  Base Amount For	50% Over Base	85% Over Base
  Married Filing Jointly	$32,001-$44,000	$44,001+
  Single/Head of Household	$25,001-$34,000	$34,001+
  Married Filing Separately	$0	$0