Tax season can feel overwhelming, but the Internal Revenue Service (IRS) has shared six practical tax tips to help taxpayers file their 2025 returns accurately, avoid delays, and maximize refunds. Whether you’re a first-time filer or a seasoned pro, these strategies will streamline your process and reduce stress.
1. Gather All Necessary Documents
A complete and accurate tax return starts with organization. Missing paperwork can lead to errors, delayed refunds, or missed deductions. Before filing, ensure you have:
- Social Security numbers for everyone listed on your return.
- Bank account and routing numbers for direct deposit refunds.
- Income documents like W-2s, 1099s, 1098s, and records of digital asset transactions.
- Form 1095-A if you purchased health insurance through the Marketplace.
- IRS letters citing tax credits or deductions (e.g., Child Tax Credit updates).
Pro tip: Create a digital or physical folder to store tax-related documents year-round.
2. Report All Income Types
The IRS receives copies of your income statements, so omissions can trigger audits or penalties. Ensure you report:
- Side hustle income: Earnings from gig work, freelancing, or online platforms (e.g., Uber, Etsy).
- Investment income: Dividends, interest, or capital gains from stocks or crypto.
- Part-time or seasonal work: Even short-term jobs require reporting.
- Foreign income: Global earnings must be disclosed.
Avoid surprises: If you received a payment app (e.g., Venmo, PayPal) Form 1099-K, include it in your return.
3. File Electronically for Faster Refunds
Paper returns take longer to process—up to six months versus 21 days for e-filers. Benefits of electronic filing include:
- Error reduction: Tax software checks for mistakes and calculates credits.
- Direct deposit: Receive refunds in as little as one week.
- Free options: Use IRS Free File if your income is under $84,000.
Pro tip: Combine e-filing with direct deposit for the fastest refund possible.
4. Leverage Free IRS Tools and Programs
The IRS offers multiple free resources to simplify filing:
- IRS Free File: For incomes $84,000, access guided tax software from partners like TurboTax.
- Direct File: New in 2024! Eligible taxpayers in 25 states can file federal returns online for free. Supports income types like gig work and retirement income.
- VITA/TCE Programs: Free tax prep help for seniors, low-income filers, and non-English speakers.
- MilTax: Active military members and veterans can file federal and state returns at no cost.
Did you know? Direct File includes live chat support and works on mobile devices.
5. Choose the Right Filing Method for You
Select an option that matches your comfort level:
- DIY filing: Use IRS Free File Fillable Forms (for incomes >$84,000) or commercial software.
- Hire a pro: Verify credentials via the IRS Directory of Tax Preparers. Avoid “ghost preparers” who refuse to sign returns.
- In-person help: Visit Volunteer Income Tax Assistance (VITA) sites for free support.
Warning: Never sign a blank return and review all details before submitting.
6. Use IRS.gov to Resolve Issues Instantly
Skip phone hold times with these 24/7 online tools:
- Where’s My Refund?: Track refund status in real time.
- Interactive Tax Assistant (ITA): Get answers to tax questions (e.g., “Can I claim my college tuition?”).
- Payment options: Set up installment plans or pay via debit/credit card.
Pro tip: Create an IRS Online Account to view tax transcripts, balances, and payment history.
Avoid Common Pitfalls
- Missing deadlines: The 2024 filing deadline is April 15, 2025 (or October 15 with an extension).
- Ignoring state taxes: Use Direct File’s state tools or local resources for state returns.
- Overlooking deductions: Claim eligible credits like the Earned Income Tax Credit (EITC) or Child Tax Credit.
Final Thoughts
Filing taxes doesn’t have to be a headache. By organizing documents, reporting all income, and using free IRS tools, you can save time, avoid errors, and secure your refund faster. For additional guidance, visit IRS.gov or explore the Let Us Help You portal.
Stay proactive, and make 2024 your smoothest tax year yet!
