The Internal Revenue Service (IRS) has announced new federal tax brackets for 2025 to account for inflation adjustments, which will impact taxpayers' obligations. Jackson Hewitt chief tax information officer Mark Steber joins Morning Brief to break down these changes.

Steber explains that several key tax provisions have been adjusted upward. The standard deduction went up "to give people a bigger tax break if you don't itemize," the earned income tax credit went up, and the child tax credit went up. He notes these changes are part of statutory inflation adjustments.

He offers three key recommendations for taxpayers preparing for 2025: create a year-end tax projection to "kind of see where you are," eliminate "lost losers" from investment portfolios and conduct thorough "house cleaning" of finances before entering 2025.

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This post was written by Angel Smith