The IRS is officially open for tax returns and with that comes a little bit of dread and excitement that you may owe or you may get a return. To reduce some of the tax season headaches, we’ve summarized some tips below.
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Preparing for the 2025 tax season can seem overwhelming, but with a little planning, you can make the process a little easier on yourself while making fewer mistakes. Here are 13 essential tips to help make your tax filing easier:
- Gather Your Documents Early
Start collecting your tax forms in a folder as they arrive, usually by late January. Key documents include W-2s, 1099s (for dividends, interest, non-employee compensation, etc.), 1098 (mortgage interest), and other forms like 1099-K for electronic payments. Keeping both paper and digital copies organized will save you time and stress. - Know Your Filing Status
Your tax filing status determines your deductions, tax rates, and eligibility for tax credits. The five main statuses are Single, Head of Household, Married Filing Jointly, Married Filing Separately, and Qualifying Surviving Spouse. Choosing the right status could save you money, so make sure to use IRS resources to ensure you’re selecting the best option. - Keep Track of Tax Deadlines
The standard filing deadline for 2024 taxes is April 15, 2025, or October 15, 2025, if you file for an extension. Mark important deadlines on your calendar to avoid penalties and ensure you submit on time. - Consider Tax Implications of Life Changes
Major life events like marriage, the birth of a child, retirement, or purchasing a home can impact your taxes. These events may change your filing status, deductions, or eligibility for credits, so take time to review how they affect your tax situation. - Watch Out for Tax Scams
Tax season is prime time for scammers. Be cautious of phishing attempts, identity theft, and fraudulent calls pretending to be the IRS. Report any suspicious communications to the IRS and stay informed about common scams. - Use Online Tools
The IRS offers free tools like IRS Direct File and IRS Free File for easy filing. You can also access your tax records online, track your refund, and make secure payments via their website. These tools help simplify the filing process and protect your information. - Get Help In-Person or by Phone
If you need assistance, the IRS offers support via phone or in-person visits to Taxpayer Assistance Centers. Volunteers through programs like VITA (for low-income taxpayers) and TCE (for seniors) are also available to help with free tax prep. - Plan for an Extension
If you’re not ready to file by the deadline, consider filing for an extension. This gives you until October 15, 2025, to submit your return, but remember, any taxes owed are still due by the original April 15 deadline. If you don’t pay by then, you’ll start to accrue interest and fees. - Check for Tax Credits and Deductions
Make sure to claim all the credits and deductions you’re eligible for, like the Earned Income Tax Credit (EITC) or deductions for mortgage interest, medical expenses, or energy-efficient home improvements. These can significantly lower your tax bill or increase your refund. - Report Electronic Payments
If you’ve received payments via platforms like PayPal, Venmo, or Cash App, you may receive a 1099-K form if your transactions total $5,000 or more. Even if you don’t receive one, you’re still required to report any business income from these sources so know where you’ve received payments for work you’ve done. - Count Your Gig Work as Income
Income from gig jobs (like rideshare driving or freelancing) is taxable. Report this income and keep track of any business-related expenses you can deduct, such as car mileage or home office costs. - Report Investment Profits and Losses
When you sell investments for a profit, you must report capital gains taxes. However, if you sell at a loss, you can use that loss to offset gains or reduce your taxable income. Be sure to accurately report both your profits and losses. - File an Accurate Return
Inaccuracies can trigger an audit, delay your refund, and create problems with the IRS. Double-check all information on your return, including forms, deductions, and credits, against what the IRS has on file.
By following these tips and preparing ahead of time, you can make the 2025 tax season much smoother. Start early, stay organized, and don’t hesitate to seek help if needed. Filing on time and correctly will save you time, money, and stress in the long run.
