Get ready for 2025 tax filing: Essential IRS updates and tips
As the 2025 tax season approaches, the IRS has rolled out key updates and tools to help taxpayers prepare effectively.
Staying ahead of these changes can save you time and stress while ensuring compliance with federal tax laws.
Here’s a breakdown of the most important updates and reminders for this year.
IRS updates for the 2025 tax season
The IRS has introduced several initiatives and changes to streamline the tax filing process and protect taxpayers’ information.
1. Expanded use of the direct file program
For the 2025 tax season, the IRS is broadening the availability of its Direct File pilot program.
This free, online tax preparation tool provides taxpayers in participating states with a simple, cost-free way to file federal tax returns.
2. Inflation adjustments for 2025
To reflect the rising cost of living, the IRS has adjusted tax brackets, standard deductions, and other provisions for inflation
Here are the updated standard deductions for the 2025 tax year:
| Filing status | Standard deduction (2025) |
|---|---|
| Single | $15,000 |
| Married Filing Jointly | $30,000 |
| Head of Household | $22,500 |
These adjustments ensure that taxpayers don’t inadvertently pay higher taxes due to inflation.
Also read – Minimum income to file taxes in 2025
3. Enhanced taxpayer tools on IRS.gov
The IRS has made significant improvements to its online tools, making it easier than ever to manage your tax information.
Features of the enhanced IRS Online Account include:
- Viewing and paying your tax balance.
- Setting up payment plans.
- Downloading tax transcripts.
- Accessing digital copies of IRS notices.
Pro tip: Log in to your IRS Online Account before tax season to verify that your records are accurate and up to date.
4. Identity protection with IP PINs
The IRS continues to promote the use of Identity Protection Personal Identification Numbers (IP PINs) as a safeguard against tax-related identity theft.
This six-digit code ensures that only you can file a tax return using your Social Security number. You can apply for a new IP PIN starting in January 2025.
5. Refund timing and expectations
The IRS advises taxpayers not to rely on receiving refunds by a specific date.
While most refunds are issued within 21 days for electronically filed returns with direct deposit, delays may occur for reasons such as:
- Errors in the return.
- Missing information.
- Additional IRS review for fraud prevention.
Taxpayers claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) should expect refunds no earlier than mid-February due to anti-fraud measures.
Key filing reminders for 2025
1. Gather your documents early
To avoid delays, ensure you have all required tax documents before filing. This includes:
- Income statements (e.g., Form W-2, 1099, and 1099-NEC).
- Records of digital asset transactions.
- Receipts for deductions and credits, such as education expenses or energy-efficient home improvements.
2. Estimated tax payments
If you have income not subject to withholding (e.g., self-employment income, gig work, or investments), make sure your estimated tax payments are up to date.
The Tax Withholding Estimator on IRS.gov can help you calculate whether additional payments are necessary to avoid penalties.
3. Energy tax credits
If you made qualified home energy improvements or purchased a clean vehicle in 2024, you may be eligible for significant tax credits under the Inflation Reduction Act of 2022. Be prepared to file:
4. Filing early for faster refunds
The IRS recommends filing electronically and choosing direct deposit for the fastest refunds. If you don’t have a bank account, consider opening one at an FDIC-insured bank, credit union, or other financial institution.
Why Filing Early is a Smart Move
Even if you're not required to file, submitting a return early can save you money or even get you a refund.
Reasons to file include:
- Refunds for overpayments: If taxes were withheld from your paycheck, filing ensures you receive any refund owed to you.
- Claiming tax credits: You might qualify for the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), or education credits like the American Opportunity Credit.
- Avoiding penalties: Filing early helps you avoid late penalties, especially if you owe additional taxes.
Pro tip: The IRS doesn’t automatically issue refunds—you must file to claim your money!
Final thoughts
The 2025 tax filing season brings changes designed to make the process easier and more secure.
Take advantage of the updated tools, review your financial records early, and consider working with a tax professional for personalized advice.
By staying proactive and informed, you can file confidently and avoid last-minute stress.