As summer begins, a series of major IRS changes are set to take effect in June 2025. These updates could significantly impact your finances, especially if you rely on tips, overtime pay, or are awaiting a paper refund. Staying informed now can help you avoid surprises later.
Key IRS Deadlines Hitting in June
If you filed your 2024 tax return close to the April deadline, your refund may be arriving soon. According to IRS guidelines:
- Returns filed by April 7: Paper check refunds are expected by June 6
- Returns filed by April 15: Paper check refunds are expected by June 16
Additionally, June 16 marks the due date for the second quarter estimated tax payment for 2025 . Missing this deadline could result in penalties.
New Tax Breaks for Tipped and Overtime Workers
The Senate has unanimously passed the “No Tax on Tips Act,” which aims to exempt up to $25,000 in tip income from federal taxes for eligible workers earning under $160,000 annually . This could benefit millions of service industry employees, including servers, bartenders, and hairstylists.
Similarly, the House has approved a bill offering tax deductions for both tips and overtime pay. While the Senate version has no expiration, the House proposal limits these deductions to the years 2025 through 2028 . Eligibility requires reported income and a valid Social Security number.
Controversial Measures Affecting Immigrant Taxpayers
A new tax reform proposal from House Republicans seeks to fund tax cuts by restricting benefits for immigrants. The plan would bar both legal and undocumented immigrants from accessing various tax credits, such as the Child Tax Credit and education tax credits . Additionally, it proposes a 3.5% tax on remittances sent abroad. These measures have drawn criticism from various advocacy groups and could impact many families.
Inflation Adjustments and Standard Deduction Increases
For the 2025 tax year, the IRS has announced inflation adjustments that raise the standard deduction:
- Single filers: $15,000 (up $400 from 2024)
- Married couples filing jointly: $30,000 (up $800 from 2024)
- Heads of household: $22,500 (up $600 from 2024)
These changes aim to reduce taxable income for many Americans.
Stay Prepared and Informed
With multiple tax changes and deadlines approaching, it’s crucial to stay updated. Ensure you meet all filing requirements and understand how new laws may affect your financial situation.
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This article was written by John Deluca. AI was used lightly for grammar and formatting, but the ideas, words, and edits are all mine.
