Tax Filing 2025: Live Updates, Tax Tips, News and IRS Tax Deadlines

Hi! Welcome to Kiplinger's 2025 tax season live blog. Since the IRS started accepting tax returns on January 27, we'll provide updates, tips, analysis, and essential information to help you navigate the tax filing process.

Stay tuned for daily posts from our tax team this week (Kelley, senior tax editor, and Kiplinger tax writers Gabriella and Kate) covering everything from who needs to file to potential future tax policy changes that could impact your wallet.

January Recap: Tax season officially began on January 27. We kicked off this blog that day, covering filing strategies, tax credits, potential stimulus checks, and the impacts of tariffs. We also highlighted the expansion of the IRS Direct File program for the 2025 filing season, new 1099-K reporting rules, and more. Our coverage in January was designed as a quick guide for navigating the first week of tax season.

Related: Tax Season Is Here: Key IRS Changes to Know Before You File

As February begins, we will continue focusing on tax filing, discussing important deductions, credits, and updates from the IRS. Additionally, we will explore state tax news and developments in federal tax policy from the White House and Capitol Hill.

Thanks for joining us!

Refresh

Florida Second Amendment Summer Tax Holiday: What to Know Now

Governor Ron DeSantis has unveiled a proposal for a "Second Amendment Summer Tax Holiday" as part of his 2025-2026 budget plan for Florida. This initiative, which has garnered significant attention, would eliminate state sales tax on firearms, ammunition, and related accessories from Memorial Day to Independence Day.

The tax holiday is just one component of DeSantis' $115.6 billion budget proposal, which includes various other tax relief measures, from back-to-school supply exemptions to disaster preparedness item holidays and tax breaks on outdoor recreation equipment.

DeSantis estimates that these combined tax relief efforts could save approximately $2.2 billion for Florida families. While the proposed gun tax holiday has sparked debate, it's not unprecedented in the United States.

  • States like Louisiana and Mississippi have implemented similar tax exemptions for firearms and hunting equipment.
  • However, Florida's proposal contrasts with actions taken in other states like California, which has recently increased its gun and ammunition tax.

DeSantis has expressed confidence in the proposal's popularity, suggesting that it aligns with voter expectations. However, the budget still requires approval from the state legislature, which will begin its regular session on March 4, 2025.

The "Second Amendment Summer" tax holiday is projected to save Floridians about $8 million on eligible items. This measure is part of a broader set of tax relief initiatives in the budget, including a "Freedom Month" sales tax holiday for outdoor recreation purchases in July and a new "Marine Fuel Tax Holiday" to provide savings for boaters.

As the budget proposal moves forward, it will likely generate further discussion among legislators, citizens, and advocacy groups on both sides of the gun rights issue. The outcome of this proposal could have significant implications for Florida's gun policies and tax structure in the coming years.

Check out Kate's story: Florida Gun Tax Holiday Turns Heads.

Tax Reform 2025: Key Deductions and Credits at Risk

did you know with a question mark on a banner

(Image credit: Getty Images)

With the Tax Cuts and Jobs Act (TCJA) expiring at the end of 2025, the Republican-led Congress is considering significant tax code changes that will likely impact millions of taxpayers.

Kiplinger has reported on proposed cuts to popular tax breaks listed in a document circulated by the GOP that, if embraced, would be used as offsets for more than $4 trillion in tax cuts President Trump desires.

Some family tax credits and benefits in jeopardy:

Other key tax breaks that could change or go away:

What does this mean for you? If some or all of these tax breaks are altered or eliminated, that could impact millions of families, students, homeowners, and employees. While proposals are preliminary, staying informed and planning is crucial.

Consult a qualified and trusted tax professional or financial planner to discuss potential impacts and the best action for you and your finances.

Learn More:

Family Tax Breaks on the GOP Chopping Block This Year

Popular Tax Breaks Are in Danger

Carried Interest Tax Loophole in Trump's Crosshairs?

the word tax spelled out next to a light bulb

(Image credit: Getty Images)

In an unexpected twist, President Trump has reignited the debate on the so-called “carried interest loophole,” calling for its elimination as part of his 2025 tax reform agenda.

The carried interest tax provision has long allowed fund managers to pay lower tax rates on their earnings. While Trump's stance on this loophole isn't new — he criticized it in his 2016 presidential campaign — its resurgence in his priorities has raised a few eyebrows.

Notably, the move aligns him with some political rivals, at least for now, as ending this controversial tax break has been a bipartisan talking point for years.

For example, former President Biden consistently called for carried interest reform. He proposed taxing carried interest as ordinary income, subjecting it to a higher tax rate than the current long-term capital gains rate. (Biden's budget proposals also include other tax changes impacting high-income earners, such as increasing the Net Investment Income Tax (NIIT) rate, the corporate tax rate, and a minimum tax for billionaires.)

However, the loophole has survived numerous attempts at elimination, protected by intense lobbying efforts and entrenched interests. Given competing fiscal priorities and a historically slim majority in the U.S. House of Representatives, the path to carried interest reform remains murky at best.

- Kelley

GOP Tax Talks on Reconciliation Bill: ‘Stuck in the Mud’

picture of the U.S. capitol building

(Image credit: Getty Images)

Good Morning! With the 2017 Tax Cuts and Jobs Act (TCJA, “Trump tax cuts”) provisions set to expire, we start this Friday with news that Republicans are struggling to forge a path forward on tax reform.

Rep. Byron Donalds (R-Fla.) described the situation to reporters as "stuck in the mud," highlighting the challenges in passing a single reconciliation bill in the U.S. House of Representatives.

The comments came after President Trump outlined his 2025 tax priorities, including:

  • Extending expiring TCJA provisions
  • Expanding the State and Local Tax (SALT) deduction
  • Tax breaks for American-made goods
  • Cutting taxes on income from tips, overtime, and Social Security
  • Eliminating tax breaks for carried interest and stadium owners

According to the Committee for a Responsible Federal Budget, the proposed package could reduce revenue by $5 trillion to $11.2 trillion over ten years, raising concerns about the national debt. Fiscal conservatives are reportedly pushing for significant spending cuts to offset these reductions.

The Road Ahead? As the TCJA expiration approaches, Republicans will have to navigate these challenges to advance their ambitious tax agenda. That won’t be easy since a also divide exists between House and Senate Republicans. The House wants a single comprehensive bill, while the Senate is reportedly leaning toward a separate approach.

Sen. Lindsay Graham of South Carolina told NBC news, "I've always believed that one big, beautiful bill is too complicated,” adding, "What unites Republicans, for sure, is border security and more money for the military. It's important we put points on the board."

The coming months will determine whether they can overcome these obstacles and pass a reconciliation bill that balances Trump’s priorities with fiscal responsibility.

Read More:

Photo of author Kelley R. Taylor
Kelley R. Taylor, Kiplinger Senior Tax Editor

Kelley simplifies federal and state tax information, news, and developments to help empower readers. She has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.

The Super Bowl Is Almost Here: Chiefs vs. Eagles and Taxes?

red toy football on top of phone balanced on computer keyboard

(Image credit: Getty Images)

We are just three days away from Super Bowl LIX. And if you plan on placing an online sports bet, don’t forget the IRS. The federal tax agency has specific rules surrounding taxes on gambling winnings and losses, which include sports betting:

  • You must report all gambling winnings on your tax return as “other income” on IRS Form 1040.
  • If your winnings are more than a certain amount, the payer will withhold 24%.
  • You should keep adequate records, like dates and types of specific wagers, for tax documentation.

Gambling losses may be claimed on your federal tax return but only to the extent of your gambling winnings (generally, you must itemize to claim a deduction). State tax laws may also apply to your sports bets.

For more information, check out Kiplinger’s reports on gambling winnings and losses:

Are You Betting on Super Bowl 2025? Don’t Forget Gambling Taxes

Is the IRS Coming for Your Gambling Winnings?

Taxes on Gambling Winnings and Losses: 8 Tips to Remember

- Kate

Breaking: Judge Pauses Buyout Trump Offered Federal Employees

court gavel over a stack of US currency

(Image credit: Getty Images)

In a developing situation, a federal judge has paused President Trump’s federal employee buyout program pending a court hearing scheduled for Monday.

The decision to temporarily enjoin the so-called “Fork in the Road Directive” came just hours before the deadline Trump’s emails provided to millions of federal workers. Tens of thousands had reportedly already accepted the offer. Confused?

Here’s our story: Judge Pauses Trump Buyout Offers As Deadline Loomed

Photo of author Kelley R. Taylor
Kelley R. Taylor, Kiplinger Senior Tax Editor

Kelley simplifies federal and state tax information, news, and developments to help empower readers. She has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.

IRS Employees Can’t Take Trump’s Buyout Until May 15

picture of sign saying "Internal Revenue Service" on IRS building

(Image credit: Getty Images)

The Trump administration gave approximately 2.3 million full-time federal workers until Feb. 6 at midnight to accept a so-called buyout offer. The resignation package promised former employees pay and benefits until Sept. 30, 2025, even if they stop working effective immediately.

So far, reports show that as many as 40,000 government employees have taken the deal. There’s no telling how many are tied to the IRS.

That thought may have sprung to the Trump administration’s collective concerns last night, as IRS employees were suddenly told that “critical” tax filing season workers are exempt from the “deferred resignation offer” until May 15. Anyone who already voluntarily accepted the deal must work through the end of the period. Tax season ends on April 15, 2025.

For more details on Trump’s goal to hollow out the IRS, check out:

Trump Wants You Out of the IRS, But You’ll Have to Wait Until May

Photo of writer Gabriella Cruz Martinez
Gabriella Cruz Martinez, Kiplinger Tax Writer

Gabriella is a seasoned finance journalist with 8 years of experience covering consumer debt, economic policy, and tax. She contributed to national dialogues on fiscal responsibility, market trends, and economic reforms.

How Much Do You Have to Make to File Taxes?

colorful post-it notes with "who pays?" written on the top one, with one hundred dollar bills

(Image credit: Getty Images)

The short answer: It depends. The IRS requires filing a federal return once you meet a certain "gross income" (total income) threshold in tax year 2024:

  • $14,600 or higher (if single) OR,
  • $29,200 (if married filing jointly)

However, you may meet a different minimum if you fall under another filing status, income type, or age. For instance, provided that one spouse is 65 or older, you may need to file federal taxes if your gross income is at least $30,750. Alternatively, the self-employed have to file a federal tax return if their net earnings are $400 or more.

Also, keep in mind that your state tax division may have different income requirements or none at all if you live in one of the nine states without income tax.

For more information on filing tips, check out Kiplinger’s reports:

- Kate

State Tax Holidays, Property Tax Relief, and Tax Credits

colorful US map

(Image credit: Getty Images)

Welcome back! Here are a few state tax news highlights from the week in case you missed them:

  • Florida Gov. DeSantis released his 2025-2026 budget proposal, including a new “Second Amendment” tax holiday that turned heads. (We’ll have more detail on this later.)
  • Missouri Republican lawmakers seek to eliminate the state’s income tax and replace it with an expanded sales and use tax.
  • North Dakota passed a bill to enact a $1,000 tax credit per homeschooled child. Qualified expenses may include books, computers, and other educational costs.
  • Ohio Gov. DeWine proposed a new child tax credit in his state budget, which would provide a tax credit of up to $1,000 per child under seven years old.
  • Texas Republican lawmakers look to slash property taxes for homeowners and businesses alike, as Gov. Abbott declared property tax cuts an “emergency item” last Sunday.

We’ll be covering some state tax updates every Thursday, so be sure to check back for more news on states. See also Kiplinger’s reports on state taxes:

Best States for Middle-Class Families Who Hate Paying Taxes

The Nine States With No Income Tax in 2025

Retirement Taxes: How All 50 States Tax Retirees

photo of author Kate Schubel
Kate Schubel, Tax Writer, Kiplinger.com

Kate is a CPA with experience in tax, audit, and finance topics. As a tax writer at Kiplinger, Kate helps you and your wallet stay in the know.

Abolishing the Department of Education?

The Entrance of the Lyndon B. Johnson Department of Education building in Washington, DC.

(Image credit: Getty Images)

President Donald Trump is reportedly drafting an executive order to abolish the Department of Education. Now what?

The Education Department is responsible for distributing billions of dollars in federal financial aid for education and supports federal college loan programs like the Pell Grant. It even administers funding for K-12 schools, including the Title 1 grant program, to schools with high percentages of low-income students.

Before you panic, it would require congressional approval to shut down the department, even if Trump plans to issue an executive order. Still, the development is troubling.

It’s also part of the Heritage Foundation's Project 2025 tax overhaul blueprint. This conservative think tank proposes transferring functions like student loans or Title 1 funding to other government agencies, such as the U.S. Treasury Department.

Worth noting: GOP lawmakers are considering eliminating certain education tax credits to fund Trump’s tax plans in 2025. These include the American Opportunity Tax Credit and other important family tax credits on the chopping block.


The Fine Print: What Trump Isn’t Telling You About His 2025 Tax Plans