4 Key Tax Questions About 2025 Taxes

By Robert P. Russo CPA

Right now, you may be more focused on what you’ll owe (or receive as a refund) when you file your 2024 tax return in April than on tax planning for the new year. However, as you work through your annual tax filing, you should familiarize yourself with amounts that may have changed for 2025 due to inflation adjustments.

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Here are four commonly asked questions (and answers) about 2025 tax figures:

1. How much money can I contribute to an IRA? If eligible, you can contribute up to $7,000 to a traditional or Roth IRA (but only up to 100% of your earned income, if less). If you’re age 50 or older, you can make another $1,000 “catch-up” contribution. (These amounts are the same as for 2024.)

2. What’s the maximum I can contribute to a 401(k) plan through my job? The amount you can contribute is up to $23,500 to a 401(k) or 403(b) plan (up from $23,000 in 2024). Those 50 or older can add a $7,500 catch-up contribution (unchanged from 2024). New in 2025, employees ages 60 through 63 can make enhanced catch-up contributions of up to $11,250 in lieu of the standard $7,500.

3. How much must I earn not to pay Social Security on my entire salary? The Social Security tax wage base rises to $176,100 (from $168,600 for 2024). You don’t owe Social Security tax on amounts earned above this threshold. (Medicare tax must be paid on all amounts earned.)

4. How much can I give one person without requiring a gift tax return? The annual gift tax exclusion is $19,000 (up from $18,000 in 2024). These are only some of the tax figures that may apply to you. Contact us for more information.

MEET ROBERT P. RUSSO, CPA PC

Picture a typical CPA. Then, meet Bob. He’s only by the book when it comes to accounting, in his interactions with people, he jumps off the page. As the founder and principal of Robert P. Russo Accounting, Bob pleasantly surprises clients (plus the IRS and lawyers) with his proactive, caring, and interested approach. Bob’s authentic passion for both numbers and people is why his firm is sought after by everyone from solopreneurs to CFOs. And it’s what energizes his fast-growing team of top CPAs, who follow his lead by providing impeccable service to clients — without the CPA geek speak.

Robert P Russo CPA PC
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