2025 Tax Time Guide: Key Updates and Filing Essentials Part 1
Tax season is here again, and navigating the filing process can feel overwhelming. But don’t worry—you don’t have to do it alone. My team and I are here to guide you through the process, ensuring you file with confidence and peace of mind. The IRS has released its 2025 Tax Time Guide, providing crucial updates and insights to help you prepare your 2024 tax return accurately. With changes to tax credits, deductions, reporting requirements, and filing options, staying informed is key to making the best financial decisions this tax season. Let’s break down what you need to know.
Key Steps for an Error-Free Tax Return
- The deadline to submit your 2024 tax return using Form 1040 or 1040-SR is April 15, 2025. To avoid errors and delays, it’s important to wait until you have all necessary tax documents before filing. Review your paperwork carefully for any missing or incorrect information. If you spot an issue, reach out to your employer or payer as soon as possible to request a correction.
- Creating an IRS Online Account can make tax season easier by giving you secure access to your payment history, tax records, and other essential details. Keeping digital copies of your documents can also help you file accurately and ensure you don’t miss out on valuable deductions or credits.
- If you use an Individual Taxpayer Identification Number (ITIN), check if it has expired. While the IRS will still accept a return with an expired ITIN, it may cause processing delays, so renewing it in advance is a smart move.
Changes to the Additional Child Tax Credit for 2024
- For the 2024 tax year, the maximum Additional Child Tax Credit (ACTC) has increased to $1,700 per qualifying child.
- A significant update for bona fide residents of Puerto Rico is that they no longer need three or more qualifying children to claim the ACTC. Now, those with one or more qualifying children may be eligible.
- If you claim the ACTC, keep in mind that the IRS cannot issue refunds before mid-February 2025. This delay applies to the entire refund, not just the ACTC portion.
Stay Tuned for Part 2
Remember that knowledge is power. I’m here to lend my expertise and support every step of the way. Don’t wait until the last minute; take charge of your finances today to avoid unnecessary penalties and interest.
For more insights on tax season preparedness and late filing penalties, read the tax Time Guide 2025 from the IRS in its entirety.
Together, let’s navigate tax season 2025 with confidence and peace of mind. Your financial well-being is our priority.