How to Prepare for the 2025 Tax Season: IRS’s 5 Simple Steps You Should Follow Today

How to Prepare for the 2025 Tax Season: The 2025 tax season is approaching, and being well-prepared can save you time, money, and stress. The Internal Revenue Service (IRS) has outlined five essential steps to help taxpayers file accurately, avoid penalties, and maximize refunds. Whether you’re a first-time filer, a seasoned taxpayer, or a small business owner, following these guidelines will ensure a smooth tax filing process. In this comprehensive guide, we will break down how to prepare for tax season, offer practical advice, and address common concerns. If you want to avoid last-minute rushes and costly mistakes, this article is for you.

How to Prepare for the 2025 Tax Season?

Preparing for the 2025 tax season doesn’t have to be overwhelming. By organizing your documents, securing your IRS account, and taking advantage of available tax credits, you can file with confidence and maximize your refund. Remember to file early, use direct deposit, and avoid common errors.

How to Prepare for the 2025 Tax Season?

Step 1: Create or Access Your IRS Online Account

The IRS online account is a secure portal that allows taxpayers to access their tax-related information. If you don’t have one yet, set it up today.

Why is it important?

• View your tax transcripts from previous years.
• Track your refund status.
• View or make tax payments.
• Sign up for electronic notices.

To create an account, visit IRS.gov and follow the instructions. You’ll need to verify your identity using a valid Social Security Number (SSN) and other personal details.

Step 2: Gather and Organize Your Tax Records

Having all your tax documents ready before filing prevents delays and mistakes. The IRS recommends keeping all income statements, deductions, and tax credits in one place.

Documents You Need

• W-2 Forms – If you’re employed.
• 1099 Forms – If you’re a freelancer, contractor, or have other income sources.
• 1095-A Form – For health insurance through the Marketplace.
• Mortgage interest statements – If you own a home.
• Student loan interest statements – If applicable.

Pro Tip: Start a digital folder where you store your tax-related documents throughout the year. This way, you won’t scramble for paperwork in April.

Step 3: Verify Your Individual Taxpayer Identification Number (ITIN)

If you don’t have a Social Security Number (SSN) and use an Individual Taxpayer Identification Number (ITIN), make sure it’s valid.

Why is this important?

• An expired ITIN can cause processing delays.
• Some tax credits may be denied if your ITIN isn’t valid.

Step 4: Obtain an Identity Protection PIN (IP PIN)

Tax-related identity theft is a growing issue. The IRS Identity Protection PIN (IP PIN) is a six-digit number that adds an extra layer of security to your tax return.

Benefits of an IP PIN

• Prevents identity theft – No one else can file using your SSN or ITIN.
• Reduces tax fraud risks.
• Speeds up processing – Less chance of the IRS flagging your return for fraud.

Step 5: Choose Direct Deposit for a Faster Refund

If you expect a tax refund, direct deposit is the quickest and safest way to receive it.

Why Choose Direct Deposit?

• Faster refunds – Most refunds arrive within 21 days.
• Secure and reliable – No risk of lost or stolen checks.
• Split your refund – You can divide it between multiple bank accounts.

When filing your tax return, simply enter your bank routing number and account number to set up direct deposit.

Additional Tax Season Tips

Beyond the IRS’s five steps, here are some additional tips to help you maximize savings and avoid common pitfalls.

1. Stay Updated on Tax Law Changes

Each year, tax laws change. In 2025, some key updates to watch include:

• Potential adjustments in tax brackets.
• Changes to Standard Deductions.
• Updates to tax credits for dependents.

2. Consider Itemizing Deductions

If your itemized deductions exceed the standard deduction, you could save more money. Some common deductions include:

• Medical expenses exceeding 7.5% of your income.
• Mortgage interest payments.
• Charitable donations.

3. File Your Taxes Early

Filing early helps in many ways:

• Get your refund faster.
• Reduce the risk of tax identity theft.
• Avoid last-minute stress.

The IRS typically begins accepting returns in late January.

4. Use Tax Software or a Professional

If your tax situation is complex, consider using:

• Tax preparation software like TurboTax or H&R Block.
• A Certified Public Accountant (CPA) for personalized guidance.

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Frequently Asked Questions (FAQs)

1. When is the deadline to file my 2025 taxes?

The tax filing deadline is expected to be April 15, 2025. If you need more time, you can request an extension until October 15, 2025.

2. What happens if I file my taxes late?

Filing late can result in:

• Late fees (5% of unpaid taxes per month).
• Interest charges on unpaid taxes.
• Delayed refunds if the IRS needs to review your return.

3. What tax credits can I claim in 2025?

Some common tax credits include:

• Child Tax Credit (CTC) – Up to $2,000 per child.
• Earned Income Tax Credit (EITC) – For low-to-moderate-income earners.
• American Opportunity Credit (AOTC) – For education expenses.

4. How can I check my refund status?

You can check your refund status at Where’s My Refund? on IRS.gov.

5. Can I still file my taxes if I lost my W-2?

Yes, you can:

1. Contact your employer for a duplicate.
2. Use IRS Form 4852 (a substitute W-2).
3. Check your IRS Online Account for wage information.