Here’s What You Need to Know About the 2025 Tax Season
While it may not be the most anticipated time for everyone, the tax season is underway. It kicked off on Jan. 27, and the Internal Revenue Service (IRS) has already received millions of returns as many Americans are expecting refunds to help make ends meet.
But whether you’re getting a refund or not, there are some important points you need to understand to stay in line with Uncle Sam and make the tax filing process run as smoothly as possible.
Do I Need to File?
If your income falls below the 2024 standard deduction threshold of $14,600 for single filers and $29,200 for those married filing jointly, you may not have to file a return. However, the Consumer Financial Protection Bureau (CFPB) recommends you consider as you may be eligible for a refund. About 100 million people are also eligible to file their federal returns for free.
How to File for Free
If your adjusted gross income (AGI) for 2024 was $84,000 or less, you can file your federal taxes online for free via Direct File. This is a program run by the IRS.
You may also qualify for free in-person programs like IRS Volunteer Income Tax Assistance (VITA), AARP Foundation Tax-Aide, and Tax Counseling for the Elderly (TCE). These programs are staffed by IRS-certified tax preparers and meet high-quality standards, according to the CFPB.
- Your AGI is generally $67,000 or less
- Have a disability
- Are 60 years or older
- Speak limited English or speak it as a second language
One quick note about Free File, though. To participate in the program, you need to claim the standard deduction. Most taxpayers do and it was nearly doubled by the Tax Cuts and Jobs Act (TCJA) established under President Donald Trump’s first term.
Standard Deduction
The standard deduction lowers your taxable income by a certain amount. As a result, it can help you reduce taxes owed or increase your refund.
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If you’re older than 65 and filing single, you can take an additional $1,950 in tax year 2024. Those over 65 and filing jointly can take a combined $3,900.
Child Tax Credit
The child tax credit was designed to help lower-income families get some tax breaks. The maximum child tax credit parents can claim is $2,000 per child under 17 depending on income. The amount phases out when adjusted gross income (AGI) is over $200,000 for single parents or $400,000 for married couples filing jointly.
Earned Income Tax Credit
If you received earned income in 2024 below $66,819, you could be eligible for the Earned Income Tax Credit (EITC). And the credit can increase if you have qualifying children. This is how the maximum EITC credit breaks down.
- $632 if you have no dependent children
- $4,213 if you have one qualifying child
- $6,960 if you have two qualifying children
- $7,830 if you have three or more qualifying children
And to clarify, earned income under the IRS includes earnings from hourly wages, salaries, bonuses, commissions, tips, and net earnings from self-employment.
What Documents Do I Need to File My Taxes?
To make sure the tax filing process goes smoothly, you should gather all your important documents before getting started. One rule of thumb is to gather all documents related to money you earned for the tax year. This includes earnings from work, interest, and investments. Here’s a checklist of what you may want to gather:
- Last year’s tax return
- W2 forms
- 1099 and 1099-INT forms
- Bank and investment account statements
- Checking account routing and account numbers to get your refund through direct deposit
- Receipts for charitable donations
- Mortgage interest statements
- Student loan interest documents
- All records of tax-deductible expenses if you are itemizing instead of taking the standard deduction
How to Get Your Refund Safely and Securely
If you are expecting a refund, it’s important to file your taxes as soon as possible. Filing online and selecting direct deposit is the fastest way to get your refund, according to the CFPB. It should take up to 21 days. But paper checks may take four to six weeks.
How to Apply for Extension
If you need more time to file your taxes, you can request an extension from the IRS which would give you up to Oct. 15 to file. But if you owe taxes, you must pay by the April 15 filing date.
The Bottom Line
Tax season is underway. To make the process as easy as possible, you should gather your necessary documents before getting started. However, some may be provided to you as late as March. So it’s important to keep an eye on your mail and email. And if you qualify for free services like Direct File, as millions do, you should consider taking advantage of these. You may also have free access to in-person tax preparers.
Furthermore, you can work with a fee-based tax professional or use fee-based tax preparation software. In either case, it’s important to do your research on these options. Professional services can help you find the most deductions and credits to maximize your refund or lower your tax liability. In many cases, working with a professional online or in person would be better than doing it entirely on your own.
The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
