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Last Updated: March 12th, 2025

Tax Season 2025: What You Need to Know Before Filing

Tax season is officially here, and the IRS expects approximately 168 million tax returns to be filed this year. Whether you’re an individual filer or a business owner, it’s time to get organized. In this guide, we’ll cover key topics to help you navigate tax season efficiently.

This blog is for educational purposes only and does not constitute financial, tax, or legal advice. You should consult with a qualified financial and tax professional before making any decisions regarding financial products, tax filings, or deductions to determine what is appropriate for your specific situation.

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Do You Even Need to File Taxes?

The income thresholds for 2025 are:

  • Single: You must file if you made more than $15,000 in gross income before deductions.

  • Married Filing Jointly: You must file if your combined income is over $30,000.

  • Head of Household: You must file if you made more than $22,500.

  • Self-Employed: If you made over $400, you are required to file taxes.

    However, even if your income falls below these thresholds, filing may still be beneficial, especially if taxes were withheld from your paychecks. Filing may allow you to claim a refund if you overpaid taxes. Additionally, some individuals qualify for refundable credits, such as the Earned Income Tax Credit (EITC) or the Child Tax Credit, even if they are not required to file.

Why Some Americans Miss Out on Refunds

The IRS estimates that 1.5 million people miss out on tax refunds each year simply because they don’t file. If you had income taxes withheld but didn’t meet the filing threshold, you might be leaving money on the table. Filing your taxes may allow you to reclaim any overpaid amounts.

 

What Documents Do You Need to File Taxes?

Gathering the right documents is crucial for an accurate and efficient filing process. Here are the essentials:

Income Forms:

  • W-2: If you’re employed, you’ll receive a W-2 from your employer.

  • 1099 Forms: If you earned income from freelance work, dividends, or retirement accounts, you may receive one of the following:

    • 1099-NEC (Non-Employee Compensation) for gig work or self-employment.

    • 1099-DIV for dividends from investments.

    • 1099-R for distributions from IRAs and 401(k)s (withdrawals may be subject to taxes and penalties if taken before age 59½).

Deductions and Credits:

  • Mortgage interest statements (if you own a home)

  • Student loan interest statements

  • Charitable donation receipts

  • Medical expense records

  • Home office deduction information (square footage of your workspace if self-employed)

  • Business expense records (for self-employed individuals)

 

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Standard Deduction vs. Itemizing: Which One is Best?

Most taxpayers opt for the standard deduction, which simplifies the filing process. For 2025, the standard deduction amounts are:

  • Single: $15,000

  • Married Filing Jointly: $30,000

  • Head of Household: $22,500

Additional Deduction for 65+:

  • Single: $2,000

  • Married Filing Jointly: $1,600 per person over 65

Itemizing makes sense if your deductible expenses exceed these amounts. This includes mortgage interest, medical expenses, and charitable donations

Tax Filing Deadlines: Mark Your Calendar

  • April 15, 2025: Standard deadline for filing personal tax returns.

  • October 15, 2025: Deadline for extensions.

  • March 15, 2025: Filing deadline for S-Corps, LLCs, and partnerships.

  • September 15, 2025: Extension deadline for business filings.

Filing early ensures you receive any potential refunds sooner.

The Truth About Tax Refunds: It’s Your Money

Filing early may help you receive any potential refunds sooner, depending on IRS processing times.

The Truth About Tax Refunds: It’s Your Money Many Americans view tax refunds as a financial windfall, but in reality, they represent money that was overpaid to the government throughout the year. Instead of giving the IRS an interest-free loan, consider adjusting your tax withholdings to receive more money in each paycheck. Updating your W-4 with your employer can help ensure your withholdings are accurate.

 

Questions?

Disclaimer: This blog is for educational purposes only and does not constitute financial, tax, or legal advice. You should consult with a qualified financial and tax professional before making any decisions regarding financial products, tax filings, or deductions to determine what is appropriate for your specific situation. Scheduling a financial strategy session does not guarantee any specific financial outcome and may involve discussing financial products regulated by applicable laws.

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