As we head into tax season, many taxpayers are focused on what really matters: how much they’ll owe or get back. Whether you’re filing as Single, Married Filing Jointly, or another status, your income level plays a bigger role than you might think—especially if you received a premium tax credit through the Health Insurance Marketplace.

At Wilson Accounting Group, we’re here to help you understand how changes in income impact not only your tax bracket, but also how much you may owe back in healthcare subsidies—and why bringing your Form 1095-A to your tax appointment is a must.

If you received health coverage through the Marketplace (Healthcare.gov or your state exchange) in 2025 and accepted an advance premium tax credit to lower your monthly insurance costs, the IRS will compare your estimated income with your actual income when you file your return.

Here’s the problem:

• If your income increased and you didn’t update your Marketplace application, you may have received too much credit.
• This could lead to an unexpected tax bill when you file.
• To reconcile the credit properly, you’ll need Form 1095-A, which reports the total premium and subsidy amounts.

If you don’t include your 1095-A, your tax return could be rejected, or worse, underreported—leading to penalties or delays.

Form 1095-A is a statement sent to you from the Health Insurance Marketplace. It includes:

• Total monthly premiums
• Monthly premium tax credits received
• The second-lowest-cost Silver Plan used to calculate your credit

You’ll need this form to complete Form 8962, which reconciles your credit with your income.

Bring your 1095-A to your tax appointment if you had Marketplace insurance—even for part of the year.

Before your tax is calculated, your standard deduction is subtracted from your income. Here are the updated amounts for 2025:

• Single or Married Filing Separately: $15,750
• Married Filing Jointly: $31,500
• Head of Household: $23,625

These deductions reduce your taxable income, so knowing where you fall in the brackets after deductions is key to estimating your tax.

Deduction for Seniors

• New deduction: Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.
  • The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).
  • Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
• Qualifying taxpayers: To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year.
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
  • Taxpayers must:
    • include the Social Security Number of the qualifying individual(s) on the return, and
    • file jointly if married, to claim the deduction.

For tax year 2025, the top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The other rates are:

35% for incomes over $250,525 ($501,050 for married couples filing jointly).

32% for incomes over $197,300 ($394,600 for married couples filing jointly).

24% for incomes over $103,350 ($206,700 for married couples filing jointly).

22% for incomes over $48,475 ($96,950 for married couples filing jointly).

12% for incomes over $11,925 ($23,850 for married couples filing jointly).

10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly).

Understanding your filing status, income level, and deductions is the first step in:

• Calculating your tax liability
• Avoiding surprises related to premium tax credits
• Planning for withholding and estimated payments

If your income has increased, don’t wait until filing time to find out you owe. We can help you:

• Project your tax liability
• Adjust your withholdings or estimated payments
• Prepare now for any repayment of healthcare subsidies

To help us prepare your taxes accurately, make sure to bring:

• Form 1095-A (if you used Marketplace health insurance)
• Year-end income statements (W-2s, 1099s)

Any documents related to income changes during the year

Don’t let income surprises or missing forms derail your tax season. At Wilson Accounting Group, we help individuals and families:

• Understand their tax bracket
• Reconcile healthcare credits
• Avoid penalties and optimize refunds