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Tag: Tax

  • IRS workers involved in tax season can’t take buyout until filing deadline


    WASHINGTON (AP) — IRS employees involved in the 2025 tax season will not be allowed to accept a buyout offer from the Trump administration until after the taxpayer filing deadline, according to a letter sent Wednesday to IRS employees.

    The letter says that “critical filing season positions in Taxpayer Services, Information Technology and the Taxpayer Advocate Service are exempt” from the administration’s buyout plan until May 15. Taxpayers have until April 15 to file their taxes unless they are granted an extension.

    Union leaders and worker advocates have criticized the proposal and question whether the government will honor any buyout contract.

    The news comes after President Donald Trump announced a plan to offer buyouts to federal employees through a “deferred resignation program” to quickly reduce the government workforce. The program deadline is Feb. 6, and administration officials said employees who accept will be able to stop working while still collecting a paycheck until Sept. 30.

    The buyouts, sent to roughly 2.3 million workers, are for all full-time federal employees with some exemptions, including military personnel, employees of the U.S. Postal Service and positions related to immigration enforcement. It’s unclear if IRS workers who accept the buyout would only receive five months of pay instead or if they would also get a full eight months.

    The federal government employed more than 3 million people as of November, accounting for nearly 1.9% of the nation’s entire civilian workforce, according to the Pew Research Center.

    Doreen Greenwald, president of the National Treasury Employees Union, has advised all federal workers not to accept the offer, which she says is dubious.

    “This is not a good deal for them,” Greenwald told The Associated Press. “If you sign this document and then later change your mind, you are left without any power to fight back.”

    Since federal employees are working under what is called a continuing resolution that keeps the government funded until March — and the Anti-Deficiency Act prohibits agencies from spending more money than is actually appropriated— funding for the buyout plan “has not been approved,” Greenwald said.

    She added: “I do not recommend people sign the document. They need to have control of their own career, and this document does not give it to them.”

    The NTEU union represents roughly 150,000 employees in 37 departments and agencies.

    “This country needs skilled, experienced federal employees,” she said “we are urging people not to take this deal because it will damage the services to the American people and it will harm the federal employees who have dedicated themselves and their career to serving.”

    Jan. 27 is the official start date of the 2025 tax season and the IRS expects more than 140 million tax returns to be filed by the April 15 deadline.

    “What most people don’t realize is that 85% of the federal workforce works outside of D.C.,” she said. “They’re your neighbors, your family, your friends. And they deliver key services for the American people.”





    With tax season in full swing, many IRS workers are working tirelessly to process tax returns and assist taxpayers with their filings. However, there is an interesting twist this year – IRS workers involved in tax season are not able to take a buyout until after the filing deadline.

    This means that for many employees, their plans to take a buyout and move on to other opportunities will have to wait until after the April filing deadline. While this may be frustrating for some workers, it is necessary to ensure that the IRS has enough staff on hand to handle the influx of tax returns during this busy time.

    Despite the delay in buyouts, IRS workers continue to work diligently to help taxpayers navigate the complexities of tax season. Their dedication and hard work are crucial in ensuring that tax returns are processed accurately and efficiently.

    So, next time you interact with an IRS employee during tax season, remember to show them some appreciation for their hard work and dedication, even if they can’t take a buyout just yet.

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    2. Tax season
    3. Buyout
    4. Filing deadline
    5. IRS employees
    6. Tax filing
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  • Where is my refund? How to check IRS tax return status, deadlines




    If you’re eagerly awaiting your tax refund from the IRS, you may be wondering, “Where is my refund?” Fortunately, there are easy ways to check the status of your tax return and find out when you can expect your money.

    One of the simplest ways to check your refund status is to use the IRS’s “Where’s My Refund?” tool on their website. All you need to do is enter your Social Security number, filing status, and the exact amount of your refund. The tool will then provide you with the current status of your refund, including whether it has been processed, approved, or sent out for payment.

    Another option is to call the IRS refund hotline at 1-800-829-1954. Make sure to have your Social Security number, filing status, and the exact amount of your refund on hand when you call.

    It’s important to remember that the IRS typically issues refunds within 21 days of receiving your tax return. However, if you filed electronically, you can expect to receive your refund much sooner than if you filed by mail.

    If you’re still waiting for your refund and the IRS refund tool or hotline doesn’t provide any information, it may be worth reaching out to a tax professional for assistance.

    Don’t forget that the deadline for filing your taxes is April 15th, so be sure to submit your return on time to avoid any penalties or interest charges. And if you’re due a refund, make sure to check the status regularly so you can plan accordingly for when your money will be coming in.

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  • Here’s what to know about the IRS “Where’s my refund?” app and your new 2025 tax brackets


    Tax season is now underway, with the IRS accepting returns for all taxpayers as of Jan. 27. That’s prompting many people to turn to the “Where’s my refund?” app from the tax agency to track when they’ll get their check.

    Americans are expected to file about 140 million returns before the April 15 deadline. Last year, about two-thirds of taxpayers got a refund, with the average check at about $3,100, according to IRS data. 

    A household’s tax refund may represent their biggest check for the entire year, with many consumers planning to use the money for debt repayment, emergency savings or a big purchase. To be sure, while a large refund may feel like a financial windfall, it actually represents income that taxpayers have overpaid to the IRS throughout the year. 

    That’s why some financial experts describe refund checks as tax-free loans to the U.S. government. Yet other experts note that tax refunds can act as a form of forced savings that a household might not otherwise be able to accomplish, allowing those taxpayers to reap the benefit in their annual refund.

    Whatever the case might be, tracking your refund can be done through the IRS’ “Where’s my refund” app, which the agency has sought to improve over the last few years. Here’s what to know. 

    How does “Where’s my refund?” work?

    The IRS operates the “Where’s my refund?” service on its website, but taxpayers can also use a mobile app called IRS2Go on their phones or other devices. Both services will provide information about your 2024 return about 24 hours after you e-file, the IRS says.

    However, people who file paper returns will need to wait about 4 weeks for their information to appear on “Where’s my refund?” or the IRS2Go app.

    Both services require taxpayers to enter information to be able to track their refunds:

    • Either your Social Security number or Individual Taxpayer Identification number
    • Filing status, such as single filer or married filing jointly 
    • The exact whole dollar amount of your expected refund from your original 2024 tax return

    The IRS tracking services will then show you information on whether the agency has received your tax return, if the refund has been approved and when the money is scheduled to land in your account. 

    When will I get my tax refund?

    That depends on whether you’ve file electronically or sent in a paper tax return, as well as if the IRS identifies any problems with your return.

    People who e-filed their returns typically receive their refunds in less than 21 days. In other words, a taxpayer who filed their 1040 on Jan. 27 could receive their payment by Feb. 17, if all goes smoothly. 

    However, the IRS opened its Free File service on Jan. 10, which is a program offered through tax software companies for taxpayers with adjusted gross income of $84,000 or less in 2024. Those using Free File could be on tap to receive their refunds by Jan. 31. 

    What can delay your tax refund? 

    Filing a paper return can delay your refund because it requires IRS employees to process them, which takes more time than e-filed returns, which are largely handled by computers. 

    Claiming either the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) can also slow down a tax refund. That’s because, by law, the IRS can’t issue refunds for returns that have claimed those tax credits before mid-February.

    “The IRS expects most EITC/ACTC-related refunds to be available in taxpayer bank accounts or on debit cards by March 3 if they chose direct deposit and there are no other issues with their tax return,” the agency said on Monday.

    Some issues can also trip up tax refunds, such as if there are math errors on your return, missing or incorrect Social Security numbers or misspelled names, according to the IRS. While these might be innocent mistakes, it can cause the IRS to flag your return and delay your refund. 

    What’s my new 2025 tax bracket? 

    The IRS has set new tax brackets for 2025, but that won’t impact the return you’ll file by April 15, since that 1040 reflects your 2024 income and taxes. 

    Each year, the IRS adjusts its tax brackets and dozens of other provisions to account for inflation. The idea is to shield taxpayers from “bracket creep” — when workers are pushed into higher tax bands due to the impact of cost-of-living adjustments aimed at offsetting inflation — without a change in their standard of living. 

    This year’s tax brackets are adjusted 2.8% higher from 2024, representing the smallest jump in several years. Because inflation jumped during the pandemic, the bracket adjustments reached 7% in 2023 and 5.4% in 2024.

    Here are the new income thresholds for 2025.

    Aimee Picchi

    Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.



    Tax season is upon us, and with it comes the annual stress of filing our taxes and waiting for our refunds. Luckily, the IRS has made it easier than ever to track the status of your refund with their “Where’s my refund?” app.

    The app allows taxpayers to check the status of their refund and see when it is expected to be deposited into their bank account. This can help alleviate some of the anxiety that comes with waiting for your refund to arrive.

    In addition to the “Where’s my refund?” app, taxpayers should also be aware of the new tax brackets for the year 2025. These brackets determine how much tax you will owe based on your income level.

    It’s important to familiarize yourself with the new tax brackets so you can better plan for your tax liability and avoid any surprises come tax time. Be sure to consult with a tax professional if you have any questions about how these new brackets may impact your tax situation.

    Overall, staying informed about the IRS “Where’s my refund?” app and the new 2025 tax brackets can help you navigate tax season with ease and confidence.

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    IRS, Where’s my refund app, 2025 tax brackets, IRS refund status, tax filing, tax refunds, tax updates, tax season, tax tips

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  • New tax season changes you should know about – NBC Chicago


    Tax season officially started Monday, and while there are still months to go before the April 15 filing deadline, experts say there are some things to watch for as you prepare.

    NBC 5 Responds spoke to experts about what’s new this tax season- and to get some reminders about how to avoid having your refund stolen.

    From new state tax credits to free ways to file- there’s a lot to know about this tax season.

    FEDERAL DEDUCTIONS INCREASE

    “On the federal side … the standard deduction is going to increase across the board for all filing status, which means that the IRS is going to tax you less on your income that you’re earning,” said Susana Ramirez, with Ladder Up, an organization that offers free tax preparation services for thousands of low-income households in Illinois.

    For single taxpayers, or married couples filing separately, the standard deduction is now  $14,600. For married couples filing jointly, it’s been boosted to $29,200. That’s an increase of $1,500 from 2023.

    NEW ILLINOIS TAX CREDITS

    Illinois taxpayers who qualify will also have access to two new state credits implemented this year.

    Those who made under $66,819 dollars qualify for the earned income tax credit. And those who qualify for the Illinois earned income credit can also apply for the new state child tax credit, if they have a child under the age of 12.

    “It’s going to give you a little boost on your refund and if you have children and might boost it even more,” said Ramirez.

    And remember that third round of economic impact payments from the pandemic? There is still time to claim that money, if you haven’t received it.

    “So that third round of the $1,400 is actually going to be expiring soon. So a lot of people who didn’t receive it during COVID or afterwards will need to file a tax return in order to claim that as a credit and receive it as a refund,” Ramirez said.  

    SCAM WARNINGS

    Now that you have an idea of what your refund may look like, it’s important to protect it. Steve Bernas with the Better Business Bureau warns taxpayers should be careful who they choose to do their taxes.

    “Nobody can promise you could do better than somebody else. It’s all done. It should be done the same way regardless of doing it. So somebody’s promising more than others be very careful,” Bernas said.

    Bernas also warned taxpayers to stay away from tax prep businesses that seem to appear overnight.

    “All of a sudden the gas station turns into a tax place and they have a big Uncle Sam out front. You’ve got to do the research on those organizations and who they are and will they be around the day after taxes are due. A lot of times they’re not. They close up and they’re gone. So who’s going to represent you if something’s wrong with the filing as well?” Bernas said, adding that people should make sure the person who completes their tax forms also signs them and provides their contact information for any future follow up.

    Both Bernas and Ramirez urged taxpayers to file their returns as quickly as possible.

    “A lot of times people find out when they go do their own taxes and say somebody else filed in your name. It’s part of the whole, you know, identity theft problem, the issue that’s out there, still the fastest growing white collar crime out there,” said Bernas.

    “Unfortunately, it is a very long process to try to resolve [fraudulent tax returns]. But it’s always good to try to file early and making sure that your information is verified,” said Ramirez.

    NEW, FREE IRS TAX FILING PROGRAM

    Finally some good news: this year more than two million illinois taxpayers will be able to file their federal and state taxes for free. Illinois is now one of 25 states participating in the Direct File program, which allows most taxpayers to file both state and federal taxes directly with the IRS at no cost. 

    To make sure no one else files your tax return- you can request a six digit pin number from the IRS. That will prevent someone else from using your social security number to file taxes.

    Once you file your taxes, the IRS says, most refunds will be available within 21 days.

    To check the status of your refund you will need the following personal information:

    Once you have that information, you can start your verification request in the “Where’s My Refund” tool here.

    You can start checking the status of your refund within:

    • 24 hours after electronically filing a 2024 tax return
    • 3 or 4 days after electronically filing a 2023 return
    • 4 weeks after mailing the return



    As tax season approaches, it’s important to stay informed about any changes that may affect your filing process. From updates to deductions and credits to new regulations, there are several key changes to be aware of this year. Here are some of the top tax season changes you should know about:

    1. Recovery Rebate Credit: If you did not receive the full amount of the stimulus payments that you were eligible for in 2020, you may be able to claim the Recovery Rebate Credit on your 2021 tax return.

    2. Child Tax Credit: The Child Tax Credit has been expanded for the 2021 tax year, allowing eligible families to receive up to $3,600 per child under the age of 6 and $3,000 per child ages 6-17.

    3. Earned Income Tax Credit: The maximum amount of the Earned Income Tax Credit has increased for the 2021 tax year, providing additional relief for low to moderate-income individuals and families.

    4. Unemployment Benefits: If you received unemployment benefits in 2021, up to $10,200 of those benefits may be tax-free for individuals with an adjusted gross income of less than $150,000.

    5. Standard Deduction: The standard deduction for 2021 has increased to $12,550 for single filers and $25,100 for married couples filing jointly.

    It’s important to stay up to date on these changes and consult with a tax professional if you have any questions or concerns. By being informed and proactive, you can ensure a smooth and successful tax filing season.

    Tags:

    tax season changes 2021, tax updates, IRS updates, tax law changes, tax season tips, tax season deadlines, tax season news, tax filing changes, tax reform, NBC Chicago news

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  • IRS, national partners launch EITC Awareness Day on 50th anniversary of the Earned Income Tax Credit


    EITC has helped America’s working families since 1975

    IR-2025-20, Jan. 31, 2025

    WASHINGTON — The Internal Revenue Service and partners around the nation today celebrated the 50th anniversary of the Earned Income Tax Credit (EITC) with the launch of this year’s EITC Awareness Day campaign.

    The annual campaign, now in its 19th year, helps increase awareness among the millions of working Americans with a low-to-moderate income who are eligible for the EITC. The IRS estimates that roughly one in five eligible taxpayers miss out on claiming this valuable credit.

    EITC was signed into law on March 29, 1975. Through numerous legislative changes, the tax break has helped encourage work and lift many financially challenged families out of poverty.

    As of December 2024, approximately 23 million workers and families had received about $64 billion total from the EITC, according to IRS statistics. On average, eligible taxpayers received $2,743 from the credit in tax year 2023.

    For the past 19 years, the IRS has invited community organizations, elected officials, state and local governments, schools, employers and other interested parties to join this national grassroots effort to help reach workers eligible for the credit. IRS offers an online social media toolkit with sample text and downloadable graphics to help spread the word about the EITC.

    Who is eligible to claim the EITC?

    Workers may use the EITC Assistant, an online tool, to check their eligibility, which may be affected by changes in marital, parental or financial status. Workers also may visit the Child-related tax benefits comparison page to learn more about basic eligibility rules for the EITC and several other tax credits.

    EITC is for workers whose income did not exceed the following limits in 2024:

    No. of dependents Single filer income limit Married, filing jointly income limit
    No children $18,591 $25,511
    1 child $49,084 $56,004
    2 children $55,768 $62,688
    3+ children $59,899 $66,819

    *Investment income limit: $11,600

    Workers also must:

    • Be a U.S. citizen or resident alien all year.
    • File a tax return even if their income level doesn’t usually require them to file.
    • Have a valid Social Security number (SSN) for themselves, as well as for their spouse, if filing a joint return, and for each qualifying dependent claimed for the EITC.
    • File a return without Form 2555, Foreign Earned Income.

    There are special rules for military personnel, clergy and ministers and taxpayers with certain types of disability income or a child who is disabled.

    Eligible workers between the ages of 25 and 64 who have no dependents may receive up to $632 by claiming the EITC, while married but separated spouses who do not file a joint return may qualify for the EITC if they meet certain requirements.

    Those with qualifying children can receive a maximum of $7,830 when claiming the EITC for tax year 2024, up from $7,430 in tax year 2023.

    How to claim the EITC

    To get the EITC, workers must file a tax return and claim the credit on that return. They can file in a variety of ways, including by using:

    As a reminder, the quickest way for taxpayers to get their refund is by e-filing an accurate return and choosing to receive that refund via direct deposit.

    New this year: Duplicate dependents

    Starting this filing season, the IRS will accept an e-filed return even if a dependent has already been claimed on a separate, previously filed return as long as the primary taxpayer on the second return includes a valid identity protection personal identification number (IP PIN).

    This change will reduce the time it takes for the agency to receive the tax return and accelerate the issuance of tax refunds for those with duplicate dependent returns. In previous years, the second tax return had to be filed by paper.

    Meanwhile, taxpayers who do not have IP PINs will have their e-filed returns rejected if one of their dependents has already been claimed by another taxpayer.

    Note that the use of an IP PIN does not exempt taxpayers from receiving notices questioning their right to claim certain dependents.

    Claiming other valuable tax credits

    Whether they qualify for the EITC, taxpayers may be eligible for other valuable tax credits, such as the Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC) or the Credit for Other Dependents (ODC). The Interactive Tax Assistant is a helpful tool for taxpayers to check their eligibility for those credits.

    When to expect EITC refunds

    The Where’s My Refund? tool, which allows taxpayers to monitor the status of their refunds, will be updated with projected deposit dates for most early EITC/ACTC refund filers by Feb. 22. Most EITC or ACTC related refunds should be available in bank accounts or on debit cards by March 3 if there are no issues with a taxpayer’s return and they chose to receive their refund by direct deposit.

    Additional resources



    Today marks the 50th anniversary of the Earned Income Tax Credit (EITC), a vital program that helps millions of working Americans keep more of their hard-earned money. To celebrate this milestone, the IRS has teamed up with national partners to launch EITC Awareness Day.

    The EITC is a refundable tax credit for low to moderate-income working individuals and families. It is designed to provide financial assistance to those who need it most, lifting them out of poverty and helping them achieve financial stability.

    EITC Awareness Day aims to raise awareness about the EITC and encourage eligible individuals to claim this valuable credit on their tax returns. By doing so, they can receive a significant refund that can make a real difference in their lives.

    The IRS and its partners are working together to spread the word about the EITC through various outreach efforts, such as social media campaigns, informational events, and community partnerships. They are also providing resources and tools to help individuals determine if they qualify for the credit and how to claim it.

    If you or someone you know may be eligible for the EITC, be sure to take advantage of this valuable program. Visit the IRS website or speak with a tax professional to learn more about how you can benefit from the EITC on its 50th anniversary.

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  • New income tax slabs: How much will you the taxpayer save, end up paying, explained


    Budget 2025 brought unexpected cheer to a large section of middle-class taxpayers who opt to file their returns under the new tax regime. Thanks to generous rebates announced, individuals earning up to ₹12 lakh an annum will not be required to pay any tax on incomes from sources such as salary.

    They will, however, have to pay taxes at special rates on other incomes such as capital gains. For instance, capital gains on earnings from the sale of equities held for less than one year is 20 per cent and for those held for longer, it is 12.5 per cent. Similarly, earnings from the sale of other movable and immovable properties will be subject to capital gains tax at appropriate rates.

    The sharp reduction in tax liability was made possible by a rejig of tax slabs under the new tax regime, the introduction of a new slab and enhanced rebates. For a person with an annual income of ₹12 lakh, the tax liability goes down from ₹80,000 at present to nil due to these changes. Those earning ₹20 lakh annually will see their tax liability fall from the current ₹2.90 lakh to ₹2 lakh. For those earning more, say annual income of ₹24 lakh, the tax liability will fall by ₹1.10 lakh from the current ₹4.10 lakh.

    Rates, slabs under old tax regime unchanged   

    What is clear is that the government wants more people to shift to the simplified new tax regime from the old tax regime. The Budget did not make any changes to the tax rates or slabs in the old tax regime.

    Taxpayers opting for the new tax regime are not allowed to claim deductions or rebates for rent paid for a house and investments in social security instruments such as life insurance, public provident fund and pension. Those filing their returns under the old tax regime can continue to claim those benefits. However, with the rejig of tax slabs and enhanced rebates, most taxpayers may find shifting to the new regime beneficial.

    The new tax regime now has seven slabs following the introduction of a 25 per cent tax slab for incomes between ₹20 lakh and ₹24 lakh. The lowest slab of nil tax is for income less than ₹4 lakh. Under the old tax regime, income of up to ₹2.5 lakh, net of reduction and rebates, is exempt from tax. Income falling between ₹2.5 lakh and ₹5 lakh is subject to 5 per cent tax, that between ₹5 lakh and ₹10 lakh is taxed at 10 per cent and income above ₹10 lakh, at 30 per cent.



    The government recently announced new income tax slabs in the Union Budget, which will come into effect from the next financial year. This move aims to simplify the tax structure and provide relief to taxpayers. But how much will you actually save or end up paying under the new tax regime? Let’s break it down.

    Under the new tax slabs, individuals have the option to choose between the existing tax regime with deductions and exemptions or the new tax regime with lower tax rates but no deductions and exemptions. The new tax slabs are as follows:

    – Up to Rs 2.5 lakh: Nil
    – Rs 2.5 lakh – Rs 5 lakh: 5%
    – Rs 5 lakh – Rs 7.5 lakh: 10%
    – Rs 7.5 lakh – Rs 10 lakh: 15%
    – Rs 10 lakh – Rs 12.5 lakh: 20%
    – Rs 12.5 lakh – Rs 15 lakh: 25%
    – Above Rs 15 lakh: 30%

    Let’s consider an individual with an annual income of Rs 10 lakh. Under the existing tax regime, with deductions and exemptions, the tax liability would be around Rs 1.12 lakh. However, under the new tax regime, the tax liability would be Rs 75,000, resulting in a saving of Rs 37,500.

    On the other hand, if the individual’s income is Rs 20 lakh, the tax liability under the existing regime would be around Rs 4.22 lakh. Under the new tax regime, the tax liability would be Rs 3.12 lakh, resulting in an increase of Rs 1.10 lakh.

    It is important for taxpayers to evaluate their individual circumstances and choose the tax regime that is most beneficial for them. Consulting a financial advisor or tax expert can help in making an informed decision. Overall, the new income tax slabs aim to provide relief to taxpayers and simplify the tax structure, but the actual impact on individuals will vary based on their income levels and deductions.

    Tags:

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    2. Taxpayer savings
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    10. Taxpayer savings analysis

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  • India Budget 2025 key takeaways: Income tax cuts for salaried middle class


    NEW DELHI (AP) — Indian Prime Minister Narendra Modi’s government presented an annual budget to Parliament on Saturday that focused on wooing the salaried middle class with tax cuts and spurring economic growth by boosting agriculture and manufacturing.

    In her budget speech, Finance Minister Nirmala Sitharaman said the government is focused on boosting private investment to strengthen growth, increasing funding in the agriculture sector and enhancing the spending power of India’s middle class.

    “The focus of the budget is taking everyone together on an inclusive path,” Sitharaman said, adding that the government is aiming for a fiscal deficit of 4.4% of India’s gross domestic product for the 2025-26 financial year.

    The world’s fifth-largest economy is expected to post its slowest growth in four years due to a sluggish manufacturing sector, persistent food inflation, stagnant job growth and weak urban consumption. The country’s chief economic advisor, in a report released on Friday, forecast India’s economy would grow 6.3% to 6.8% in the next fiscal year.

    Here are some takeaways from the budget:

    Income tax cuts for the salaried middle class

    Sitharaman said her government will initiate reforms in sectors like finance, power, urban development and mining, with “transformative reforms in taxation.” She raised the starting point for income tax to $14,800 from $8,074 and said the government will introduce a new income tax bill next week.

    “The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment,” Sitharaman said.

    Modi, who is now in his third term as the country’s prime minister, has been under pressure to allay discontent among the country’s middle class and generate more jobs to help sustain growth. Many economists had suggested his government make tax cuts on individuals’ income and implement job creation programs to mitigate rising unemployment.

    According to the Center for Monitoring the Indian Economy, youth unemployment was at 7.5% in January, underscoring the challenge of delivering jobs in a country of more than 1.4 billion people.

    Agriculture sector and gig economy gets a boost

    To boost productivity across the agriculture sector, the Indian government will launch a nationwide program to push high-yielding crops, focusing on the cultivation of pulses and cotton production. Sitharaman said the program will target at least 17 million farmers and raise the limit for subsidized credit offered to them from $3,460 to $5,767.

    The government also plans to formally register India’s gig workers and ease their access to health care. Sitharaman said the government will issue them identity cards and maintain a national registry that will ensure their inclusion in welfare initiatives.

    India’s gig economy could employ more than 23 million people by 2030, according to estimates by government think tank NITI Aayog.

    Investments in new startup funds and energy sector

    Sitharaman announced a new fund for startups and said the government will provide more money to promote innovation in partnership with the private sector and launch programs to push manufacturing and exports. The share of manufacturing in India’s economy is close to 17%, short of its aimed goal of 25%.

    The government will infuse more money to increase tourism-led employment in several Indian states and help with building infrastructure and boosting air connectivity to 120 new destinations over 10 years, Sitharaman said.

    She also announced the Nuclear Energy Mission to drive India’s transition toward clean energy, with a goal of developing at least 100 GW of nuclear power by 2047.





    The India Budget 2025 was recently announced and one of the key takeaways for the salaried middle class is the income tax cuts. The government has introduced new tax slabs and reduced the tax rates for individuals earning between Rs 5 lakh to Rs 15 lakh per year. This will provide much-needed relief to the middle class who have been facing the burden of high taxes.

    Additionally, the government has also increased the standard deduction for salaried individuals, which will further help in reducing the tax liability. The focus on reducing the tax burden on the middle class is a welcome move and will help in increasing disposable income for individuals.

    Overall, the India Budget 2025 has brought some positive changes for the salaried middle class by providing income tax cuts and increasing standard deductions. This will not only benefit individuals but also boost consumer spending and stimulate economic growth.

    Tags:

    India Budget 2025, key takeaways, Income tax cuts, salaried middle class, budget highlights, tax reforms, economic policies, government initiatives, financial updates.

    #India #Budget #key #takeaways #Income #tax #cuts #salaried #middle #class

  • Where’s my refund? How to track your tax refund using IRS website, app




    Are you still waiting for your tax refund to arrive? Don’t worry, you can easily track it using the IRS website or app. Here’s how:

    1. Visit the IRS website at www.irs.gov and click on the “Refunds” tab. From there, you can select “Where’s My Refund?” and enter your Social Security number, filing status, and the exact amount of your refund.

    2. If you prefer to track your refund on the go, you can download the IRS2Go app on your smartphone. Simply input the same information as mentioned above and you’ll be able to see the status of your refund in real-time.

    3. Keep in mind that it may take some time for your refund to be processed, especially during peak tax season. The IRS updates their refund status once a day, so be sure to check back regularly for any updates.

    So, if you’re wondering “Where’s my refund?” make sure to use these resources to track your tax refund and get peace of mind knowing when it will be deposited into your bank account.

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  • No Tax On Income Up To Rs 12 Lakh



    New Delhi:

    There will be no income tax payable up to Rs 12 lakh – i.e., up to Rs 12.75 lakh including standard deductions – under the new regime, Union Finance Minister Nirmala Sitharaman said Saturday as she read out the Union Budget 2025.

    In an announcement accompanied by loud cheers and enthusiastic thumping of desks by BJP MPs, led by Prime Minister Narendra Modi, she also announced revisions to the tax slabs (again, applicable to the new regime only).

    Under the revised slabs, tax on income up to Rs 4 lakh is nil.

    Between Rs 4 and Rs 8 lakh the tax will be five per cent.

    Between Rs 8 and Rs 12 lakh it will be 10 per cent.

    Between Rs 12 lakh and Rs 16 lakh it will be 15 per cent.

    Between Rs 16 lakh and Rs 20 lakh it will be 20 per cent.

    Between Rs 20 lakh and Rs 24 lakh it will be 25 per cent.

    Above Rs 24 lakh it will be 30 per cent.

    BUDGET 2025 | Slabs Revised For New Regime, No Tax On Income Till 4 Lakh

    All of this, Ms Sitharaman said, will “substantially reduce tax burden on middle class and leave more money in their hands”. It will also boost household consumption, savings, and investment, she said.

    In other tax-related announcements, Ms Sitharaman also said TDS, or tax deduction at source, rates will be rationalised, and the limit for tax deduction for senior citizens will be doubled to Rs 1 lakh.

    Further, she also proposed doubling the deadline to file updated returns to four years.

    A New Direct Tax Code?

    The big-ticket announcement on personal income tax by the Finance Minister followed confirmation of a new direct tax code – to simplify compliance for individual taxpayers – will be introduced next week.

    On Thursday sources had confirmed to NDTV this new code might be introduced.

    READ | Will Introduce New Income Tax Bill Next Week: Finance Minister

    Talk of a new direct tax code emerged when Ms Sitharaman presented the full 2024/25 budget in July; then she had said the goal was to make current income tax laws simpler to read and understand, and reduce the number of pages of the I-T Act of 1961 by a staggering 60 per cent.

    How Is It Different From I-T Act?

    The 1961 Act – which deals with imposition of direct taxes, i.e., personal and corporate tax, as well as those on securities transactions, gifts, and wealth – has 23 chapters and 298 sections.

    READ | What Is Direct Tax Code? How It Is Different From I-T Act, 1961

    Among the biggest expected changes are the scrapping of the concept of financial year (FY) and accounting year (AY), which often led to confusion. It may also introduce taxes – possibly at five per cent – on income from insurance policies from the Life Insurance Corporation.

    These were not taxed under the 1961 law.

    Also, taxes on dividend income (now at slab rates) may be standardised at 15 per cent. But Most significant is that this new code will not offer an option between the old and new regimes.







    In a recent announcement, the government has made a significant move by declaring that there will be no tax on income up to Rs 12 lakh. This decision comes as a relief to many taxpayers who were burdened by high tax rates in the past.

    With this new rule in place, individuals earning up to Rs 12 lakh annually will not have to pay any taxes on their income. This move is expected to benefit a large number of middle-class taxpayers and provide them with some much-needed financial relief.

    The government’s decision to exempt income up to Rs 12 lakh from taxes is a welcome step towards simplifying the tax system and reducing the tax burden on the common man. This move is likely to encourage more people to file their tax returns and contribute to the country’s economy.

    Overall, this decision is a positive development that will benefit a large section of the population and is a step in the right direction towards making the tax system more equitable and fair.

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  • budget 2025 live: Budget 2025 Live Updates: Nirmala Sitharaman to introduce New Income tax bill next week; China’s factories, new UDAN boost & education push in focus


    Budget 2025 Live Updates: Finance Minister Nirmala Sitharaman presented the first full India Budget of Modi 3.0, aiming to balance middle-class tax relief with economic growth needs.

    This Budget comes as GDP growth is projected to fall to a four-year low of 6.4% in FY24, near its decadal average. The Economic Survey forecasts 6.3-6.8% growth in FY26, well below the pace required to achieve Viksit Bharat by 2047. It stresses the need for land and labour reforms to drive growth.

    With India’s world-leading growth showing signs of moderation, the push for an 8% annual growth rate remains crucial. The projected growth for FY25-26 compares to an estimated 6.4% in FY24 and 8.2% in FY23-24.

    Budget 2025 Live streaming: When and where to watch Nirmala Sitharaman’s speech;
    Budget Speech Timing: Scheduled for 11 a.m. on February 1 in the Lok Sabha.
    Live Broadcast: Available on Sansad TV, DD News, and Sansad TV’s YouTube channel.
    Online Updates: Follow all Budget 2025 updates on economictimes.com

    Key numbers to watch out for in the Union Budget for 2025-26:
    Fiscal Deficit
    Capital Expenditure
    Debt Roadmap
    Borrowing
    Tax Revenue
    GST
    Nominal GDP
    Dividend
    Disinvestment & Asset Monetisation

    Budget FAQs
    What is the Union Budget?
    The Union Budget is the annual financial statement of the government. It outlines revenue and expenditure for the upcoming financial year.

    Who presents the Union Budget?
    Finance Minister Nirmala Sitharaman presents the Budget in Parliament.

    When is the Budget presented?
    The Budget is presented on February 1.

    What are the key components of the Budget?
    Revenue Budget
    Expenditure Budget
    Fiscal Deficit
    GDP Growth Projections
    Policy Announcements

    Will there be changes in income tax slabs?
    Given the pressure on middle class, Nirmala Sitharaman may propose changes in tax slabs, exemptions, and deductions under the old and new tax regimes in the budget.

    What are the indirect tax changes?
    Major indirect taxes are GST, customs, excise duties etc. The Budget can alter GST rates, impose or reduce customs and excise duties, impacting imported goods and services.

    Get ready for the latest updates on Budget 2025 live! Finance Minister Nirmala Sitharaman is all set to introduce a new Income tax bill next week, paving the way for significant changes in the tax structure.

    In addition to the tax reforms, the budget will also focus on boosting China’s factories, promoting the new UDAN (Ude Desh Ka Aam Nagrik) scheme for regional connectivity, and pushing for advancements in education.

    Stay tuned for more updates as we bring you the latest developments and analysis on Budget 2025 live! #Budget2025 #NirmalaSitharaman #IncomeTaxBill #ChinaFactories #UDAN #EducationPush”

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    #budget #live #Budget #Live #Updates #Nirmala #Sitharaman #introduce #Income #tax #bill #week #Chinas #factories #UDAN #boost #education #push #focus

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