Key Provisions That Stay the Same

The Internal Revenue Service (IRS) frequently updates its policies to reflect inflation, cost of living adjustments, and other economic factors. While several changes for the 2025 tax year have already been announced, some key provisions remain unchanged. Below, we’ll take a closer look at three important aspects of the tax code that will stay the same in 2025.

Key Items That Remain Unchanged

1. Itemized Deductions

For the 2025 tax year, the limitation on itemized deductions remains at zero. This rule, which originated with the Tax Cuts and Jobs Act (TCJA) of 2017, has been in place since 2018. It eliminates the cap on itemized deductions, allowing taxpayers who itemize to claim deductions without restriction. This can be particularly beneficial for those with significant deductible expenses, as it offers an opportunity for greater savings compared to the standard deduction.

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2. Personal Exemptions

Another provision that continues from the TCJA is the elimination of personal exemptions. In 2025, as in 2024, personal exemptions will be set at $0. This means that individuals and families cannot claim personal exemptions to reduce their taxable income. The removal of personal exemptions was one of the most significant changes under the TCJA and remains in effect, impacting how families calculate their tax obligations.

3. Lifetime Learning Credit (LLC)

The eligibility thresholds for the Lifetime Learning Credit (LLC) remain unchanged for the 2025 tax year. The credit, which provides up to $2,000 per tax return for qualified education expenses, begins to phase out when taxpayers have the following modified adjusted gross incomes (MAGI):

• $160,000 for joint filers
• $80,000 for single filers

These thresholds have not been adjusted for inflation since 2020, which means that as wages and salaries increase over time due to inflation, more taxpayers may find themselves ineligible for the credit despite rising income levels.

What Does This Mean for Taxpayers?

The continuation of these provisions provides some certainty for taxpayers when planning for the 2025 tax year. However, the lack of inflation adjustments in certain areas, such as the LLC income limits, may restrict access to valuable credits for some taxpayers. For instance, more families may find it harder to qualify for the Lifetime Learning Credit as their incomes rise but without a corresponding adjustment to eligibility.

If you are unsure how these unchanged provisions may affect your tax situation, it’s advisable to consult with a tax professional. Keeping track of these constants—and the many other adjustments the IRS has made for the 2025 tax year—can help ensure your tax planning is as efficient as possible.

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FAQs

What are itemized deductions?
Itemized deductions allow taxpayers to claim certain expenses, such as mortgage interest or medical costs, instead of taking the standard deduction.

Why are personal exemptions still $0?
The Tax Cuts and Jobs Act of 2017 eliminated personal exemptions, setting the amount at $0 for the foreseeable future.

What is the income limit for the Lifetime Learning Credit?
The credit phases out at $160,000 for joint filers and $80,000 for single filers.

Has the LLC income threshold changed?
No, the LLC income thresholds have not been adjusted for inflation since 2020.

Can the Lifetime Learning Credit be combined with other credits?
Yes, but the eligibility and limitations of each credit must be considered, as each has its own rules.