Season’s Greetings from Sterling Hawthorne Group!
As we reflect on 2024, we are grateful for the trust and collaboration of valued partners like you. Your support has been an integral part of our journey, and we are excited to continue working together in the year ahead. May this holiday season bring joy to you and your loved ones, and may the new year be filled with happiness, health, and success.
Office Hours Update
To better serve you, our hours beginning in mid to late January 2024 will be:
- Monday – Thursday: 9:30 AM – 5:30 PM
- Friday: 10:00 AM – 5:00 PM
After April 15, 2024, our regular hours will be:
- Monday – Thursday: 10:00 AM – 5:00 PM
- Friday: Closed
For convenience, we encourage you to utilize our secure portal, TaxDome, to upload documents and e-sign tax returns.
Important Tax Deadlines
- Partnerships and S-Corporation Returns: Due March 15, 2024
- Personal and C-Corporation Returns: Due April 15, 2024
Standard Deduction Comparison (2024 vs. 2025)
Standard deduction table
| Filing Status | Standard Deduction 2024 | Standard Deduction 2025 |
| Single | $14,600 | $15,000 |
| Married Filing Jointly or Qualifying Widow(er) | $29,200 | $30,000 |
| Married Filing Separately | $14,600 | $15,000 |
| Head of Household | $21,900 | $22,500 |
Tax Year 2024 Tax Brackets
| Taxable Income Brackets and Rates | |||
| Rate | Single Filers | Married Joint Filers | Head of Household Filers |
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $16,550 |
| 12% | $11,600 to $47,150 | $23,200 to $94,300 | $16,550 to $63,100 |
| 22% | $47,150 to $100,525 | $94,300 to $201,050 | $63,100 to $100,500 |
| 24% | $100,525 to $191,950 | $201,050 to $383,900 | $100,500 to $191,950 |
| 32% | $191,950 to $243,725 | $383,900 to $487,450 | $191,950 to $243,700 |
| 35% | $243,725 to $609,350 | $487,450 to $731.200 | $243,700 to $609,350 |
| 37% | $609,350+ | $731.200+ | $609,350+ |
Tax Year 2025 Tax Brackets
| Taxable Income Brackets and Rates | |||
| Rate | Single Filers | Married Joint Filers | Head of Household Filers |
| 10% | $0 to $11,925 | $0 to $23,850 | $0 to $17,000 |
| 12% | $11,925 to $48,475 | $23,850 to $96,950 | $17,000 to $64,850 |
| 22% | $48,475 to $103,350 | $96,950 to $206,700 | $64,850 to $103,350 |
| 24% | $103,350 to $197,300 | $206,700 to $394,600 | $103,350 to $197,300 |
| 32% | $197,300 to $250,525 | $394,600 to $501,050 | $197,300 to $250,500 |
| 35% | $250,525 to $626,350 | $501,050 to $751,600 | $250,500 to $626,350 |
| 37% | $626,350 + | $751,600+ | $626,350+ |
Key Highlights for 2024-2025:
Beginning this year the IRS will allow you to electronically file your tax return even if someone else has already claimed your dependent on another return. For this to happen, you must have an Identity Protection Personal Identification Number (IP PIN) as the primary taxpayer. If there is no IP PIN then the return will reject and become a mail in return as it has been in the past.
The Tax Cuts and Jobs Act (TCJA) expires at the end of 2025, which will affect individual filers, including: increased income tax rates, lower standard deduction, changes to itemized deductions, and rollback of the child tax credit among other things. Congress has indicated this will be addressed in 2025 and therefore what will occur is unknown.
In 2025 the gift tax exclusion increases from $18,000 to $19,000 per person. You can gift this amount to as many individuals as you want without triggering a gift tax.
In 2025, Social Security withholding tax applies to the first $176,100 of income, up from $168,600 in 2024. This is the income threshold before deductions are applied for Social Security. The Social Security withholding rate remains at 6.2% for individuals and 6.2% for the employer.
On December 3rd, 2024 a Federal Judge ruled that the Beneficial Ownership Report (BOI Report) was unconstitutional and granted a preliminary injunction blocking the Department of Treasury from enforcing the Corporate Transparency Act (CTA) beneficial ownership information (BOI) reporting requirements for businesses.
Expanded Services
In addition to tax preparation, we are proud to offer Family Office Services, integrating tax, wealth, and risk management into one seamless experience. This approach provides lower costs, smarter tax treatment, and a holistic strategy to preserve and grow wealth, previously available only to the ultra-wealthy.
For business owners, we’ve enhanced our Business Intelligence (BI) Services to address complex challenges through advanced analytics.
Closing Thoughts
At Sterling Hawthorne Group, we remain committed to delivering exceptional service and supporting your success. Feel free to contact us with any questions or to schedule a consultation.
Visit us at 5750 Rufe Snow Dr, Ste 119, North Richland Hills, TX 76180, or call us at 817-428-6005. Our website, sterlinghawthorne.com, provides access to resources, including this letter.
Warm wishes for a joyful holiday season and a prosperous new year!
Sincerely,
The Team at Sterling Hawthorne Group LLC
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