5 Steps to Get Ready for IRS Tax Season 2025: With the 2025 IRS tax season just around the corner, getting ready now can help you avoid last-minute worries and expensive errors. No matter if you work for someone else, you’re your own boss, or you run a business, knowing important dates, checking if you can get tax credits, and gathering the right paperwork will make filing your taxes a lot easier. This straightforward guide lays out five simple steps to get ready for the 2025 tax season, helping you feel more in control as you go through the process.
The upcoming tax season doesn’t have to feel like a burden. If you start preparing early, keep your documents organized, and are clear about what you need to do, you’ll lessen the chance of making mistakes and could even increase your refund. Let’s take a look at the important steps you should follow.
5 Steps to Get Ready for IRS Tax Season 2025
Topic | Details |
---|---|
Tax Filing Deadline | April 15, 2025 (unless it falls on a weekend or holiday) |
Extension Deadline | October 15, 2025 (with proper extension request) |
Eligibility for Tax Credits | Child Tax Credit, Earned Income Tax Credit, Education Credits, etc. |
Key Documents Needed | W-2, 1099 forms, proof of insurance, student loan interest records, etc. |
Estimated Tax Payments | For self-employed individuals, quarterly payments may be required |
Official IRS website | IRS.gov |
Getting ready for the 2025 IRS tax season doesn’t need to be a source of worry. Just by following these five simple steps—checking if you qualify for credits, sorting out your documents, being aware of key deadlines, saving money for taxes, and filing your return early—you’ll set yourself up for an easier tax season. Keep yourself proactive, organized, and informed to enjoy a smooth tax experience.
Step 1: Check Your Eligibility for Important Tax Credits
Before diving into your tax return, take a moment to find out what tax credits and deductions you might qualify for. These can really help reduce your tax bill or boost your refund. Staying informed about these options means you won’t miss out on money that could be yours.
Tax Credits and Deductions You Should Know About for 2025:
- Earned Income Tax Credit (EITC): This credit is designed to help people with low to moderate incomes. If you have a family with three or more kids in 2025, you could get as much as $6,935. The great thing is, if this credit is more than what you owe in taxes, you can get that extra back as a refund.
- Child Tax Credit (CTC): Parents may qualify for $2,000 for each child under 17, and families that meet certain criteria could receive up to $1,500 back. The CTC has been a great support for families in recent times and continues to provide important financial help.
- Education Credits: If you or someone you depend on has educational expenses, you might be eligible for either the American Opportunity Credit (up to $2,500 per student) or the Lifetime Learning Credit (up to $2,000 per return). These credits can help with tuition and other school-related costs, making them very useful for students and their families.
- Student Loan Interest Deduction: If you paid interest on your student loans in 2024, you can deduct up to $2,500 of that amount. This deduction can lower your taxable income.
- Saver’s Credit: If you put money into retirement accounts like an IRA or a 401(k), you might qualify for the Saver’s Credit. This could give you as much as $1,000 if you file alone, or $2,000 if you file jointly. It’s a nice way to encourage saving for retirement while also easing your tax bill.
Tip: Don’t forget to look at the IRS guidelines for each credit since the amounts and requirements can change every year. Check the official IRS website for the latest details.
Step 2: Collect and Organize Your Financial Papers
Getting your financial documents in order is really important for a smooth tax season. It’s a good idea to start gathering everything as soon as possible. Here’s a list of key documents you should have ready for filing:
- W-2 Forms (from your job): These show how much you earned and the taxes taken out of your paychecks.
- 1099 Forms (for freelancers or contractors): These report different types of income, like earnings from self-employment or investments.
- 1095 Forms: These confirm that you had health insurance in 2024, which helps you avoid fines under the Affordable Care Act.
- Bank Statements and Investment Papers: If you earn money from investments or have business expenses, collect your bank statements and investment records.
- Receipts for Deductions: If you plan to claim deductions for things like charity donations, medical costs, or mortgage interest, gather those receipts early.
- Student Loan Interest Statements: Form 1098-E shows how much interest you paid on student loans, which you might be able to deduct.
Having all these documents ready before you dive into filing helps things go smoothly and cuts down on mistakes in your return.
Step 3: Know When to Pay the IRS
It’s really important to file your tax return on time, but paying your taxes on time matters just as much. If you don’t, the IRS can hit you with penalties and interest.
Important Dates for the 2025 Tax Season:
- Tax Filing Deadline: You need to file your tax return by April 15, 2025. If that day happens to be a weekend or holiday, the deadline shifts to the next weekday.
- Payment Deadline: If you owe taxes, you must pay them by April 15, 2025. The longer you wait, the more interest and penalties you could face.
- Extension Filing Deadline: If you aren’t ready to file your tax return, you can request an extension, giving you until October 15, 2025, to file. But keep in mind, this doesn’t change your payment deadline. If you owe taxes, you still need to pay by April 15 to avoid extra charges.
Tip: If you are feeling unsure about your taxes or need more time, consider filing for an extension to steer clear of penalties. Just don’t forget, an extension gives you more time to file, not to pay.
Step 4: Save Money for Taxes (If You Need To)
If you work for yourself or earn money that doesn’t have taxes taken out automatically, it’s really important to save some money throughout the year. If you don’t plan ahead, you might end up facing tax penalties.
Estimated Tax Payments for Those Who Are Self-Employed:
- Who Should Pay: If you think you’ll owe more than $1,000 in taxes after your deductions, you need to make estimated tax payments. This is usually the case for self-employed people, freelancers, or business owners.
- How to Pay: You can pay your estimated taxes using IRS Direct Pay or the Electronic Federal Tax Payment System (EFTPS). Both options are user-friendly online tools that let you pay directly from your bank account.
- When Payments are Due: For 2025, here are the general due dates for estimated tax payments:
- April 15, 2025
- June 15, 2025
- September 15, 2025
- January 15, 2026 (for the fourth quarter)
Tip: If you’re self-employed, it’s a good idea to save about 25% to 30% of your income for taxes to avoid any surprises when tax time comes.
Step 5: Think About Filing Early and Using Electronic Submission
To have a hassle-free tax season, it’s a good idea to file your taxes early. Doing so comes with several benefits:
- Avoiding the Last-Minute Rush: When you file early, you have the opportunity to sort out any problems that pop up, like missing paperwork or eligibility questions.
- Getting Your Refund Sooner: If you’re waiting on a refund, filing early can speed up the process. Generally, the IRS will process most refunds within 21 days if you file electronically and select direct deposit.
- Staying Safe from Fraud: Filing early helps shield you from identity theft. If someone tries to file a fake return using your details, being the first to file can help protect you.
The IRS suggests filing electronically to get faster processing and refunds. Using trusted software for e-filing can also help you avoid common mistakes that might delay your refund or cause penalties.
Extra Tips for Smooth Tax Filing
- Check Your Tax Withholding: If you had a large refund or a big tax bill last year, consider adjusting your withholding for the next tax year. You can use the IRS Withholding Calculator to get an idea of the right amount to withhold from your paychecks.
- Stay Safe from Identity Theft: The IRS advises using an Identity Protection PIN (IP PIN) to guard your tax filing. If you’ve been affected by identity theft, an IP PIN can help prevent fraud and safeguard your refund.
- Seek Professional Help: If you’re uncertain about your taxes or have complicated financial matters—like running a business, having numerous investments, or multiple income sources—it might be wise to get assistance from a tax professional. They can offer tailored advice and help you make the most of your credits and deductions.
Frequently Asked Questions
Can I file my taxes if I haven’t received all my forms yet?
Yes, but you should not file until you have all the necessary documents. Filing without them could delay your refund or result in fines.
What happens if I miss the filing deadline?
If you miss the filing deadline, you may face penalties and interest. If you owe taxes, it’s best to file for an extension, but you must still pay by April 15 to avoid penalties.
How can I check the status of my refund?
You can check your refund status using the IRS Where’s My Refund? tool, available on the IRS website.