The 2025 tax filing season officially opened on January 27, 2025. The IRS expects to process over 140 million tax returns by the April 15, 2025, deadline. Now is the time to get organized.
For those living in federally declared disaster areas, you may have additional time to file your taxes, but for everyone else, it’s crucial to stay ahead of the process. Having a tax strategy in place ensures a smoother experience and minimizes the risk of errors. Here’s what you need to know and what documentation you should gather to make this tax season as stress-free as possible.
Get Organized with a Tax Checklist
Preparation is key when it comes to the tax filing process. By organizing your tax documents now, you reduce the likelihood of errors, avoid potential delays and position yourself to claim every eligible deduction and credit. Here’s a detailed checklist to help you get started.
Personal Information
Ensure you have accurate personal details for yourself, your spouse and any dependents. This includes:
- Social Security Numbers (SSN), or if not eligible, Individual Tax Identification Numbers (ITIN) or Adoption Taxpayer Identification Numbers (ATIN)
- Dates of birth for all individuals listed on your tax return
- Income details for dependents, if applicable
- Legal updates, such as name changes (report these to the Social Security Administration)
- Address changes must be updated with the IRS
Income Documentation
Document all income sources for 2024. Some key forms and records to gather include:
Employees and Contractors
- Forms W-2 from your employer(s) outlining wages and tips
- Records of household employee wages for work such as babysitting, nanny, cooking, etc. Self-Employment and Investments
Self-Employment and Investments
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Forms 1099-K and 1099-MISC to report self-employment or gig economy income
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Form 1099-INT for interest income and Form 1099-DIV for dividends
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Details of stock options, including grant dates, stock values and sale records
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Cryptocurrency transactions, gambling winnings and taxable alimony payments
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Additional Income Sources
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Form 1099-G for unemployment compensation
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Health coverage documentation, such as Form 1095-A, for Premium Tax Credits
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Keep in mind that most income is taxable unless specifically excluded by law. Don't overlook smaller sources of income like hobby earnings or digital asset transactions.
Tax Deductions and Credits
Maximize your tax savings by organizing records for deductions and credits. Here are the most common ones to consider for individual taxpayers, married filers and high-income earners:
Charitable Contributions
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Receipts, bank statements or other proof of cash donations, especially for contributions over $250
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Forms 1098-C for vehicle, boat or plane donations
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Appraisals for non-cash contributions exceeding $5,000 in value
Medical and Dental Expenses
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Documentation for unreimbursed medical costs, such as treatments, tests and prescriptions
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Records for insurance premiums, including Medicare and long-term care insurance
Education and Adoption
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Form 1098-T for tuition payments and related expenses not covered by scholarships
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Receipts for qualified adoption expenses, such as legal fees or travel costs, and details on the adopted child (e.g., name, age, taxpayer identification)
Child-Related Tax Benefits
If you qualify, collect records for credits like the Child Tax Credit ($2,000 per child) or the Child and Dependent Care Credit, including amounts paid and care provider details.
Energy and Vehicle Incentives
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Documents for home energy-efficient upgrades (e.g., central air conditioners, insulation and windows) and clean energy systems for the home (e.g., solar panels, solar water heaters and geothermal heat pumps)
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Time-of-sale reports for clean vehicle purchases and MSRP for new vehicles
Prepaid Taxes and Other Payments
Compile any records of taxes you prepaid in 2024, including estimated tax payments or refunds applied from your 2023 return. Accurate records of prepaid taxes will reduce the amount you owe on your tax return.
General Documentation
Finally, ensure you have these basics covered:
- Bank account and routing numbers if expecting a direct deposit refund
- Foreign bank account information, if applicable
- Last year’s tax return for reference
- Driver’s license information for e-filing (if required)
Changes and Deadlines to Keep in Mind
What’s New for 2024 Returns
Tax laws continue to change, and staying informed can help you avoid surprises. Key updates for filing 2024 tax year returns include:
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The Child Tax Credit remains $2,000 per qualifying child under 17 years, with a higher refundable portion of $1,700. This credit phases out for single filers at $200,000 and joint filers at $400,000.
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The IRS has revised the 1099-K reporting threshold to $5,000 instead of $20,000 for taxpayers paid for goods and services provided through online marketplace and payment apps (e.g., Etsy, eBay and PayPal)
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Expansions to IRS Free File and the Direct File pilot program make it easier than ever to file at no cost if you meet the criteria. For further information and eligibility requirements, visit the IRS website page for IRS Free File and Direct File.
Disaster-Related Extensions
In 2024, the U.S. experienced 27 confirmed disasters, resulting in significant loss of life and property and costing over $1 billion each. Federally declared natural disasters in 2024 prompted the IRS to extend tax deadlines for affected areas.
For example, individuals impacted by Hurricane Helene or the California wildfires may have until late 2025 to file and pay taxes without penalties. Check the IRS Tax Relief in Disaster Situations page for the most current tax relief and extension information.
Filing Early
The deadline for submitting your 2024 tax return or filing for an extension is April 15, 2025. While early filing can speed up the refund process, ensure everything is in order. You are responsible for filing a complete and accurate tax return, and any missing information will result in delays. Extensions, if needed, give you until October 15, 2025, to finalize your return, but they don’t extend the deadline for paying taxes owed.
Choose LTax for Your Tax Filing Needs
The tax filing process can be overwhelming, especially with changes each year. LTax helps minimize risks while maximizing deductions and credits. Our experienced professionals will handle every step of your tax preparation, from organizing your paperwork to filing your return. Contact an LTax tax specialist or call us at (561) 453-1441 for personalized advice and peace of mind this tax season.
Get started today and file confidently with LTax—your trusted partner in tax filing preparation and planning.
LEGAL OR TAX: The information herein is not legal, such as trust or estate planning, advice, or tax advice. Any such information is provided for illustrative purposes only and must not be relied upon without the benefit of the advice of your lawyer and/or tax professional. Lido specifically disclaims any liability from any reliance on such information. Lido is not a legal service provider or tax professional and does not offer legal or tax advice. Should you desire to obtain tax or legal services or advice, you must enter into your own, independent engagement agreement with a licensed attorney or tax professional.