TAX RESOURCES
Standard deduction 2025 (Taxes due April 15)
Filing status 2025 standard deduction
Single $15,750.
Married, filing separately $15,750.
Married, filing jointly; qualified widow/er $31,500.
Head of household $23,625.
Changes to Itemized Deductions
Taxpayers who choose to itemize their deductions can do so by filing Schedule A (Form 1040), Itemized Deductions. Depending on their individual circumstances, eligible itemized deductions may include:
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State and local income or sales taxes
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Real estate and personal property taxes
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Home mortgage interest
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Personal casualty and theft losses resulting from a federally declared disaster
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Charitable contributions to qualified organizations
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Unreimbursed medical and dental expenses exceeding 7.5% of adjusted gross income
Certain itemized deductions, including deductions for taxes, may be subject to limitations. Taxpayers should review the Schedule A (Form 1040) instructions for additional details regarding eligibility and applicable limits.
Self-Employment Tax
You generally must pay self-employment tax and file Schedule SE (Form 1040 or 1040-SR) if either of the following applies:
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Your net earnings from self-employment are $600 or more (excluding church employee income).
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You have church employee income of $108.28 or more.
What Is Self-Employment Tax?
Self-employment tax consists primarily of Social Security and Medicare taxes for individuals who work for themselves. It is similar to the Social Security and Medicare taxes that are generally withheld from employees’ paychecks.
The self-employment tax rate is 15.3%, consisting of:
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12.4% Social Security tax — Old-Age, Survivors, and Disability Insurance (OASDI)
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2.9% Medicare tax — Hospital Insurance (HI)
For 2025, the first $160,200 of combined wages, tips, and net earnings from self-employment is subject to the Social Security portion of these taxes, including any combination of Social Security tax, self-employment tax, or railroad retirement tax.
Form 1099-K and Other Income Reporting Forms
Businesses and individuals may receive various information returns reporting payments they received during the year. These may include:
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Form 1099-K — Payment Card and Third-Party Network Transactions
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Form 1099-NEC — Nonemployee Compensation
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Form 1099-MISC — Miscellaneous Information
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Other applicable information returns
Form 1099-K
Before 2022, Form 1099-K was generally issued for third-party network transactions when both of the following requirements were met:
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More than 200 transactions occurred during the year, and
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The total amount of those transactions exceeded $20,000.
The American Rescue Plan Act of 2021 changed the reporting requirements for third-party settlement organizations and payment networks. Taxpayers should review the current IRS requirements for the applicable tax year.
Form 1099-MISC
Generally, file Form 1099-MISC, Miscellaneous Information, for each person to whom your business paid:
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At least $10 in royalties or broker payments made in lieu of dividends or tax-exempt interest.
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At least $600 for certain types of payments, including:
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Rents
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Prizes and awards
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Other income payments
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Medical and health care payments
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Crop insurance proceeds
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Cash payments for fish or other aquatic life purchased from someone engaged in the trade or business of catching fish
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Certain payments made under notional principal contracts
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Payments to attorneys
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Fishing boat proceeds
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Direct Sales
Form 1099-MISC may also be required when a business makes direct sales of at least $5,000 of consumer products to a buyer for resale, when the sale is made somewhere other than a permanent retail establishment.
Form 1099-NEC — Nonemployee Compensation
Businesses generally use Form 1099-NEC, Nonemployee Compensation, to report payments made during the year to individuals or businesses for services performed in the course of a trade or business.
Generally, Form 1099-NEC is required when you pay a person or business $600 or more for:
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Services performed by someone who is not your employee
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Services that may include related parts and materials
Businesses should review the current IRS instructions for Form 1099-NEC to determine whether a payment is reportable and whether any exceptions apply.
Specific Instructions for Form 1099-NEC
File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business to whom you have paid the following during the year.
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At least $600 in services performed by someone who is not your employee (including parts and materials)
Educator Expense Deduction
New School Year Reminder for Educators
For 2025, eligible educators may deduct up to $300 of qualifying out-of-pocket classroom expenses when filing their federal income tax return.
The educator expense deduction may be available even if the educator takes the standard deduction.
Eligible educators generally include:
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Kindergarten through grade 12 teachers
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Instructors
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Counselors
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Principals
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Aides
To qualify, the educator must generally work at least 900 hours during the school year at a school that provides elementary or secondary education. Both public and private school educators may qualify.