Get Ahead of 2025 Taxes: Must-Know Updates & Tips for Filing Success!

Attention, Taxpayers! The countdown to the 2025 tax filing season is on! With just a few months to go, the IRS is urging everyone to take proactive steps to gear up for filing those 2024 federal income tax returns. Don’t let tax season catch you off guard—prepare now and breeze through the process later!

The IRS is stepping up its game by enhancing taxpayer services, introducing more handy digital tools and options designed to simplify the filing experience. Now’s the time to sign up for an IRS Online Account to streamline your tax season and keep your information secure!

As 2024 winds down and the 2025 tax season looms, here’s exactly what you can do to ensure you’re ready:

Check out the Get Ready page on IRS.gov, packed with smart tips and essential resources to ease your tax filing journey. This page highlights vital updates and actionable steps to consider for a smoother filing experience next year.

Don’t wait until the last minute! Taking these steps now can cut down on stress and pave the way for a hassle-free tax filing process.

Boost Your Tax Game with an IRS Online Account

Creating or accessing your IRS Online Account is as easy as pie! With an Online Account, taxpayers can:

• View key details from their most recent tax return, including adjusted gross income.
• Request an identity protection PIN.
• Access account transcripts, including wage and income records.
• Sign tax forms like powers of attorney or tax information authorizations.
• Adjust language preferences and alternative media settings.
• Receive and review over 200 IRS electronic notices.
• Manage payments—view, make, and even cancel payments.
• Set up or modify payment plans and check your balance.

Secure Your Identity with an IP PIN

Protecting your tax identity is crucial! An identity protection PIN (IP PIN) is a six-digit number that ensures only you can file a federal tax return using your Social Security number. This year, the IRS is accepting Forms 1040, 1040-NR, and 1040-SS even if a dependent has already been claimed on a previously filed return, provided the primary taxpayer includes a valid IP PIN. This change will help speed up tax return processing and refund issuance!

Getting your IP PIN is a snap through the IRS Online Account. If you hit a snag, don’t worry—alternative methods, such as in-person authentication at a Taxpayer Assistance Center, are available. For more details, visit Get an identity protection PIN (IP PIN).

Mark Your Calendars: Last Quarterly Estimated Payment Due Jan. 15, 2025

If you have non-wage income—like unemployment benefits, self-employment income, or earnings from digital assets—you may need to make estimated tax payments. Use the Tax Withholding Estimator on IRS.gov to find out if you need to make an additional payment. Stay ahead of the game and avoid surprises come tax time!

New 1099-K Reporting Changes

If you earned over $5,000 through online marketplaces or payment apps in 2024, expect to receive a Form 1099-K in January 2025—this form is also sent to the IRS. While there are no changes to the taxability of your income, it’s essential to report all income, regardless of whether you received a Form 1099-K. Remember, good recordkeeping is your best ally in making tax filing a breeze.

Reporting Digital Assets for 2025

Attention, digital asset owners! Just like previous years, all income related to digital assets must be reported on your 2024 federal income tax return. This includes cryptocurrencies, non-fungible tokens (NFTs), and other electronic properties. Be sure to keep thorough records of all transactions and the fair market values in U.S. dollars!

When filing, be ready to answer: “At any time during the tax year, did you:

• (a) receive (as a reward, award, or payment for property or services); or
• (b) sell, exchange, or otherwise dispose of a digital asset?”

Stay informed with resources available on the IRS website to ensure you accurately report your digital asset income. Don’t forget, good recordkeeping is key for accurate returns!

Timing is Everything: Understand Your Refunds Better

Several factors can affect how quickly you receive your refund after filing. While most refunds are issued in under 21 days, it’s wise not to rely on a specific date for big purchases or bill payments. Some returns may take longer if they raise flags for errors, missing info, or potential fraud. Also, keep in mind that under the PATH Act, refunds for those claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) can’t be issued until mid-February.

Get Organized: Gather Your 2024 Tax Documents

To make your filing experience smoother, establish an effective record-keeping system—be it electronic or paper—to keep all crucial documents organized in one spot. This includes year-end income forms like W-2s, 1099 forms, and records of digital asset transactions. Having everything in order not only helps in filing accurately but minimizes processing delays and refund issues.

Fast Track Your Refund with Direct Deposit

Filing electronically and opting for direct deposit is the quickest way to receive your tax refund. Skip the wait for paper checks and get your money faster!

If you don’t have a bank account, resources are available to help you open one at an FDIC-insured bank or use the national Credit Union Locator tool. Veterans can explore the Veterans Benefits Banking Program for financial services.

Tax refunds can also be deposited onto prepaid debit cards or mobile payment apps, as long as they have the necessary routing and account numbers. Be sure to check with your provider on the specific details you need for your tax return.

Explore Free Filing Options

Did you know that 70% of all taxpayers qualify to use free brand-name tax software? With IRS Free File, you can prepare and file your federal income tax return electronically, at zero cost! No matter your income level, you can also utilize IRS Free File Fillable Forms.

Residents of participating states with straightforward tax returns can file directly with the IRS through Direct File. Check your eligibility today!

Taxpayers aged 60 and over, military members, and others may qualify for free tax return preparation and e-filing through IRS-trained volunteers via the Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) programs.