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you might check thisIRS documentto find your tax bracket by filing status.
If your income is relatively stable, you might save.
Since this credit can be complex to figure out, check out theIRS EITC assistantonce it updates for 2025.
Kamel highlighted that this is one of the IRS credits that can give you a larger refund.
If youre a high earner, higher AMT exemptions could give you some relief on next years return.
There are also new phase-out amounts of $626,350 to $1,252,700 (based on your filing status).
Kamel said that the annual FSA contribution limit for 2025 went up by $100 to $3,300.
Plus, you’re able to carry over $660 that you dont use this year.
Kamel explained how traditional 401(k) contributions can help you cut your tax bill for 2025.
But he also advised keeping the future in mind.
Just keep in mind that state taxes may apply even for transfers within these federal exemption limits.
The maximum amount jumped by $400 to $17,280.
However, this isnt a refundable credit.
Like the EITC, this credit has manyIRS rulesyou have to meet.
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