IRS Publication 17 — Your Federal Income Tax (Individuals)

to claim the credit for other dependents. Beginning in 2025, to be eligible to claim the credit for other dependents, you, or your spouse if filing jointly, must have a valid SSN or ITIN issued on or before the due date of your return (including extensions). Changes to the adoption credit.

Recent legislation made changes to the adoption credit. Beginning in 2025, the following changes apply.

• Up to $5,000 of adoption credit is refundable. Up to $5,000 of your adoption credit may be refundable. The amount of the refundable portion is determined separately for each eligible child.

• Parity for Indian Tribal governments. Tribal governments now have parity for special needs adoption determinations. This means that state government and Indian Tribal government determinations of special needs are both recognized for purposes of the adoption credit. For more information, see Form 8839, Qualified Adoption Expenses, and its instructions. The adoption credit and the exclusion for employer -provided adoption benefits are both $17,280 per eligible child in 2025. The amount begins to phase out if you have modified AGI in excess of $259,190 and is completely phased out if your modified AGI is $299,190 or more.

Election to pay tax on farmland sale or exchange in installments. If your tax year began after July 4, 2025, and you sold or exchanged qualified farmland to a qualified farmer after that date, you can elect to pay the net income tax liability on the sale or exchange in four equal installments. For more information, see the instructions for Schedule 2 (Form 1040) and Schedule 3 (Form 1040). Also, see Form 1062, Deferral of Tax on Gain From the Sale or Exchange of Qualified Farmland Property to Qualified Farmers, and its instructions.

Domestic research and experimental expenditures. Beginning in 2025, taxpayers are allowed to deduct domestic research and experimental expenditures. Alternatively, taxpayers may elect to charge their domestic research and experimental expenditures to a capital account and deduct them ratably over a period of not less than 60 months (beginning with the month in which the taxpayers first realize the benefits from such expenditures).

Health flexible spending arrangements (health FSAs) under cafeteria plans. For tax years beginning in 2025, the dollar limitation under section 1251(i) on voluntary employee salary reductions for contributions to health FSAs is $3,300.

Delayed refund for returns claiming the ACTC. The IRS cannot issue refunds before mid -February 2026 for returns that properly claim the ACTC. This time frame applies to the entire refund, not just the portion associated with the ACTC.

Standard mileage rate. The 2025 rate for business use of a vehicle is 70 cents a mile. The 2025 rate for use of your vehicle to do volunteer work for certain charitable organizations is 14 cents a mile. The 2025 rate for operating expenses for a car when you use it for medical reasons is 21 cents a mile.

Modified adjusted gross income (AGI) limit for traditional IRA contributions. For 2025, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

• More than $126,000 but less than $146,000 for a married couple filing a joint return or a qualifying surviving spouse,

• More than $79,000 but less than $89,000 for a single individual or head of household, or

• Less than $10,000 for a married individual filing a separate return.

If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work but you aren’t, your deduction is phased out if your modified AGI is more than $236,000 but less than $246,000. If your modified AGI is $246,000 or more, you can’t take a deduction for contributions to a traditional IRA. See How Much Can You Deduct in chapter 9, later. Modified AGI limit for Roth IRA contributions. For 2025, your Roth IRA contribution limit is reduced (phased out) in the following situations.

• Your filing status is married filing jointly or qualifying surviving spouse and your modified AGI is at least $236,000. You can’t make a Roth IRA contribution if your modified AGI is $246,000 or more.

• Your filing status is single, head of household, or married filing separately and you didn’t live with your spouse at any time in 2025 and your modified AGI is at least $150,000. You can’t make a Roth IRA contribution if your modified AGI is $165,000 or more.

• Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than zero. You can’t make a Roth IRA contribution if your modified AGI is $10,000 or more. See Can You Contribute to a Roth IRA in chapter 9, later. 2026 modified AGI limits. You can find information about the 2026 contribution and modified AGI limits in Pub. 590-A. Tax law changes for 2026. When you figure how much income tax you want withheld from your pay and when you figure your estimated tax, consider tax law changes effective in 2026. For more information, see Pub. 505. Alternative minimum tax (AMT) exemption amount increased.

The AMT exemption amount is increased to $88,100 ($137,000 if married filing jointly or qualifying surviving spouse; $68,500 if married filing separately). The income levels at which the AMT exemption begins to phase out have increased to $626,350 ($1,252,700 if married filing jointly or qualifying surviving spouse).

Updated reporting requirements for Form 1099 -K. Payment card companies, payment apps, and online marketplaces will be required to send you a Form 1099 -Konly if the amount of your business transactions during the year is more than $20,000 and the total number of your transactions is more than 200.

New option for scheduled appointments at Taxpayer Assistance Centers (TACs). Beginning in 2025, taxpayers with scheduled appointments at TACs may choose to receive appointment confirmations, reminders, and cancellation notices directly via text message on their mobile devices.

Reminders Listed below are important reminders and other items that may help you file your 2025 tax return.

Many of these items are explained in more detail later in this publication.

Secure your tax records from identity theft. Identity theft occurs when someone uses your personal information, such as your name, SSN, or other identifying information, without your permission, to commit fraud or other crimes. An identity thief may use your SSN to get a job or may file a tax return using your SSN to receive a refund. For more information about identity theft and how to reduce your risk from it, see chapter 1, later.

Taxpayer identification numbers (TINs). You must provide the TIN for each person for whom you claim certain tax benefits. This applies even if the person was born in 2025. Generally, this number is the person’s SSN. See chapter 1, later.

Additional child tax credit (ACTC) amount. The maximum ACTC amount is $1,700 for each qualifying child.

Premium tax credit (PTC). The ARP expanded the PTC by eliminating the limitation that a taxpayer’s household income may not exceed 400% of the federal poverty line and generally increases the credit amounts. For more information, see Pub. 974 and Form 8962 and its instructions.

Identity verification. The IRS launched an improved identity verification and sign -in process that enables more people to securely access and use IRS online tools and applications. T o provide verification services, the IRS is using ID.me, a trusted technology provider. The new process is one more step the IRS is taking to ensure that taxpayer information is provided only to the person who legally has a right to the data. Taxpayers using the new mobile-friendly verification procedure can gain entry to existing IRS online services such as the Child Tax Credit Update Portal , Online Account, Get Transcript Online, Get an Identity Protection PIN (IP PIN) , and Online Payment Agreement .

Additional IRS applications will transition to the new method over the next year. Each online service will also provide information that will instruct taxpayers on the steps they need to follow for access to 2 Publication 17 (2025)