In this article:
- 1. Gather Your Documents Early
- 2. Know Your Filing Status
- 3. Keep Track of 2025 Tax Deadlines
- 4. Consider Tax Implications of Life Changes
- 5. Watch Out for Tax Scams
- 6. Take Advantage of Online Tools
- 7. Get Help in Person and by Phone
- 8. Plan for an Extension Now
- 9. Check Tax Credits and Deductions
- 10. Report Electronic Payments From Form 1099-K
- 11. Count Your Gig Work as Income
- 12. Report Profits, Deduct Losses on Investments
- 13. File an Accurate Return
Are you ready for the 2025 tax season? If the answer is no, here are 13 tips to get you oriented, prepped and motivated. From starting early to double-checking for accuracy, these tips help make tax filing easier, so you can get through the 2025 tax season with ease.
1. Gather Your Documents Early
Dashing around your house on April 14 trying to find that one form you know you saw (but where?) is one way to gather your tax documents. Or, you can start early by finding a large manila envelope and using it to collect your year-end tax forms as they arrive in the mail, usually starting in late January.
You may need many documents to complete your tax return. Here are a few common forms to look for:
- W-2 for employment earnings
- 1099-DIV for dividends
- 1099-INT for interest received
- 1099-NEC for non-employee compensation
- 1099-K for electronic business payments received (more below)
- 1099-R for distributions from 401(k), IRA or pension plans
- Schedule K-1 for income, losses, tax deductions and credits from a trust, partnership or S corporation
- Form 1098 for mortgage interest paid
- Form 5498 for IRA, SEP-IRA and SIMPLE contributions
- Form 5498-SA for health savings account contributions
Make a folder on your home computer as well, to keep digital tax forms, online receipts, year-end account statements and other relevant documents. For security's sake, you may want to encrypt and password protect tax-related documents on your computer. Store paper documents in a safe place for at least three years after you file your taxes, along with your completed tax returns.
2. Know Your Filing Status
Your tax filing status affects your standard deduction, tax brackets, filing requirements and eligibility for certain tax credits. Not sure what your status is? It's based on your marital status on the last day of the year.
Here are the five filing statuses:
- Single: You are unmarried, divorced or legally separated.
- Head of household: You are single and pay more than half of your living expenses for yourself and a qualifying dependent.
- Married filing jointly: You are married or your spouse passed away during the year, and you are filing only one tax return.
- Married filing separately: You are married and don't wish to file jointly. In some cases, filing separately may save you money.
- Qualifying surviving spouse: Your spouse died within the past two years and you have one or more dependent children.
Still not sure? The IRS has an interactive tax assistant to help you figure out which filing status fits you and, if there's more than one option, which saves you the most money.
3. Keep Track of 2025 Tax Deadlines
The deadline for filing your 2024 tax return is April 15, 2025—October 15, 2025 if you request an automatic filing extension. Here are key 2025 deadlines for individual taxpayers at a glance:
Filing Deadline for 2024 Tax Returns
April 15, 2025
Automatic Extension Deadline for 2024 Tax Returns
October 15, 2025
2025 Quarterly Estimated Tax Payment Due Dates
April 15, 2025
June 16, 2025
September 15, 2025
January 15, 2026
4. Consider Tax Implications of Life Changes
Major life changes can bring on major changes to your taxes. If you've been through a big life event in the past year, consider allocating a little extra time this tax season to understanding how your taxes may be affected, and exploring your best options. Below are just a few of the possible tax implications you might face if you've undergone a recent life change.
| How Life Changes May Change Your Taxes | |
|---|---|
| Life Event | Possible Tax Implications |
| Marriage | Your new tax filing status affects your standard deduction, tax brackets and eligibility for certain tax credits. |
| New baby | Your filing status could change from single to head of household if you're not married. You may be eligible for the child tax credit, adoption tax credit, and child and dependent care credit. An additional dependent may help you qualify for the earned income tax credit. |
| Retirement | Learn about tax changes in retirement for traditional IRA and 401(k) withdrawals, Roth IRA distributions, Social Security benefits (with or without wages), pensions and more. You can claim an additional standard deduction if you're over age 65. |
| Home purchase | Claim the home mortgage interest deduction (if you itemize deductions). Local property taxes may be tax deductible. |
5. Watch Out for Tax Scams
Scammers posing as the IRS may go after your personal information or demand payment; fraudsters posing as you may attempt to file taxes in your name. Either way, tax scams can cost you money and wreak havoc with your tax file. Here's what to do if you come across these common types of tax scams:
- Report phishing scams to the IRS. If you receive a suspicious email or text pretending to be from the IRS, report it. The IRS does not make unscheduled phone calls or send unsolicited email or texts requesting personal identifying information or immediate payment.
- Watch out for tax identity theft. A scammer also may use your identity to file a fake tax return and collect a refund. Notify the IRS if you can't e-file your tax return because a return has already been filed under your Social Security or tax identification number, or if you experience any signs of tax identity theft.
6. Take Advantage of Online Tools
IRS online tools can make it easier to file your taxes, pay your tax bill, protect your identity against fraudulent tax return filing and more. Here are a few highlights.
- Try IRS Direct File. IRS Direct File helps you file your taxes directly with the IRS for free. The Direct File pilot rolled out with limited availability for the 2023 tax year. This year, Direct File will be available to taxpayers in 24 participating states.
- Use IRS Free File. In addition to Direct File, the IRS links taxpayers with guided tax preparation software from trusted IRS partners. Online filing with Free File costs you nothing if your adjusted gross income meets IRS guidelines.
- Open an online account. When you open an individual online account and verify your identity, you can set up a personalized PIN to protect your identity, make payments, set up a payment plan, review information from your most recent tax return and more.
- Track your refund online. The IRS Where's My Refund? tool provides detailed updates and works seamlessly on your mobile device so you can find out what your refund's status is anytime.
7. Get Help in Person and by Phone
Get help with your tax issues in person or by phone from the IRS and the Taxpayer Advocate Service (TAS), an independent organization within the IRS that offers free tax advice and advocacy for taxpayers who are having difficulty resolving their IRS issues.
Here's how to start:
- Call the IRS. Last year, the IRS added more resources and an expanded callback feature to the toll-free IRS helpline, reducing expected wait times.
- Visit a Taxpayer Assistance Center. IRS Taxpayer Assistance Centers are available nationwide to provide in-person service for 2025. Many offer extended hours.
- Get volunteer help with tax preparation. Volunteer Income Tax Assistance (VITA) provides free tax prep assistance for taxpayers who have lower incomes, disabilities or limited English-speaking skills. Tax Counseling for the Elderly (TCE) offers free tax advice for taxpayers ages 60 and older. Find a VITA or TCE site near you using the VITA Locator Tool.
- Access expert help with difficult cases. Contact the TAS if you have an unresolved issue with the IRS that involves financial hardship, systemic problems (such as lengthy delays) and issues related to fairness and equity. Learn more about the TAS to determine whether your case qualifies for assistance and how they might help.
8. Plan for an Extension Now
You don't have to wait until April 15 to decide you need more time to file. If you think an extension will help, request one now. Your filing due date will be automatically moved to October 15, just for asking. Be forewarned, however: Though your tax return can be delayed, your tax payment cannot. If you expect to owe taxes, make a good faith estimate of what you owe and submit it with your request for extension.
There are three easy ways to submit your request:
- Use IRS Form 4868 to request an extension by mail. You can also do so with help from an IRS e-filing partner or tax pro.
- Request an automatic tax-filing extension using IRS Free File. There is no income restriction on using Free File when you're requesting an extension.
- Pay the tax you owe using an IRS online payment option and check the box that indicates you're paying as part of filing for an extension. You don't have to file an additional form requesting the extension and will receive an automatic confirmation of your payment.
When an extension may already be granted: You may already be eligible for an automatic extension if you live in a federally declared disaster area, are in the military abroad or deployed to a combat zone, or are currently living outside the U.S. Check the IRS site for more information.
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9. Check Tax Credits and Deductions
Tax credits can reduce your tax bill significantly or increase your refund if you have one coming. This year, inflation adjustments to standard deductions and tax brackets may also lower your tax bill, if your income and other parameters stay the same.
- Standard deductions have increased across all filing statuses. If you claim the standard deduction, as most taxpayers do, your deduction should be larger this year than last. For example, a married couple filing jointly can claim a standard deduction of $29,200 in 2024, up $1,500 over 2023.
- Tax brackets have also been adjusted for inflation. Tax brackets apply progressively higher marginal tax rates to your income as it increases. The lowest income (or tax) bracket is taxed at 10%, the second bracket at 12%, the third at 22% and so on through all seven tax rates. When the IRS expands tax brackets to account for a rising cost of living, more of your income is taxed at lower rates and less at higher rates. The net result: The same taxable income in 2024 incurs less tax than it did in 2023.
- The earned income tax credit (EITC) has new income limits and credit amounts to reflect a higher cost of living. Check the IRS site for details on 2024 income limits and maximum credits.
- Other tax credits could also be useful. For example, the clean vehicle tax credit, which provides a tax credit of up to $7,500 for a new vehicle and $4,000 for a previously owned vehicle if you purchased a qualifying all-electric, plug-in hybrid or fuel cell electric vehicle in 2024. The energy efficient home improvement credit gives you a credit for 30% of qualifying home improvements, up to $3,200.
10. Report Electronic Payments From Form 1099-K
Form 1099-K reports business payments processed by digital payment companies like Venmo, Cash App or Paypal. Although 1099-K forms aren't new for the 2024 tax year, they're recent enough that one might catch you by surprise. If you have a business account with one of these providers and you've used it to receive $5,000 or more in payment for goods sold or services rendered, your transactions may be reported (to both you and the IRS) on Form 1099-K.
- What should you do if you receive a 1099-K? Check it for accuracy and use it to report transactions on your 2024 tax return.
- What if you had business transactions but did not receive a 1099-K? You're still required to report income from self-employment, gig work (details below), sales of goods or other business transactions on your tax return, whether or not you receive a 1099-K.
11. Count Your Gig Work as Income
If you've been earning money in the gig economy—driving for a delivery app, for example—you must report your income and pay taxes on it. Depending on whether you've worked as an employee or a contractor, you may need to file Schedule C: Profit or Loss from Business. The good news: If you are considered self-employed, you may be able to deduct some car or home office expenses. The bad news: Business taxes can be a bit more complicated. For more, visit the IRS's Gig Economy Tax Center.
12. Report Profits, Deduct Losses on Investments
When you sell an investment for more than you paid for it, you'll owe capital gains taxes on your profit. If you sold stocks, mutual funds, real estate, cryptocurrency or any other investment for a gain, you must report your gain (or loss) on your tax return and pay long- or short-term capital gains tax to the IRS.
Two things to remember: First, you only owe capital gains taxes when you sell an investment. If you didn't sell any investment assets in 2024, you haven't realized any gains—and you don't owe any capital gains tax. You may, however, owe taxes on dividends or interest you received.
Second, when you sell an asset for less than you paid for it, you can use the capital loss to offset your capital gains for the year. You may also deduct up to $3,000 in capital loss against your ordinary income and do the same as a carryover loss of up to $3,000 a year until the loss is used up. Additionally, you may use a carryover loss to offset capital gains in future years.
13. File an Accurate Return
Inaccuracies on your tax return are a potential trigger for an IRS audit. When you file your taxes, the IRS checks the information in it against W-2 forms from your employer; 1099s from clients, banks or investment companies; and its own record of payments you've made (such as quarterly estimated tax payments). If your tax return differs from what the IRS has on file, it may be flagged for a manual review, which could delay your refund.
To be extra safe, check your return for accuracy against the information the IRS has on file. You can get a free digital copy of your tax transcript by visiting the IRS's Get Your Tax Record site.
The Bottom Line
One final bit of advice: Start early and file on time. Giving yourself a bit of a runway makes the tax preparation process much less stressful. The sooner you can start, the better. Also, do everything you can to file on time. You'll avoid penalties and interest. And, in truth, your taxes don't get easier to do the longer you wait to do them. Get ready, get set and go.