ELLY GRIMM
• Leader & Times
Tax season is officially here, which means many people will be preparing everything necessary for the next several weeks.
With that in mind, there are many factors to keep in mind, including who will prepare everything, according to Bankrate.com.
“If you had major changes in your life – maybe you got married or divorced, started your own business or had to claim unemployment benefits – your taxes will be more complicated. As a result, you might need to hire a CPA or other tax professional to prepare and file your taxes,” Bankrate.com noted. “Just don’t wait until the calendar flips to April to make that decision because it could end up costing you. Many tax professionals will charge more as the filing deadline closes in. Or you could find yourself scrambling to find someone who’s not too busy to help you. However, if you’re not comfortable doing your own taxes and can’t afford to go to a CPA or a tax giant such as H&R Block, there are options that won’t cost you a cent. Free File Alliance is a coalition of tax software companies that partner with the IRS to help U.S. taxpayers e-file their returns. Your adjusted gross income cannot exceed $72,000 a year to qualify for the service. The Volunteer Income Tax Assistance program (VITA) uses IRS-certified volunteers to offer free basic tax preparation and e-filing to people who earn less than $57,000 a year, people who are disabled or whose English is limited.”
Another important step, according to Navy Federal Credit Union, is to have all the necessary information on hand.
“Give yourself plenty of time to get organized before filing your federal tax return or reaching out to a professional for assistance,” Navy Federal Credit Union noted. “Use a tax preparation checklist to make sure you have the necessary documents and information, including Social Security number(s), income statements, standard deduction information, retirement plan contributions and limits, and investment gains/losses. It’s also recommended to save forms, donation receipts and other documents in separate folders. It’s also a good idea to keep track of all relevant tax deadlines and make sure you’re aware of everything that’s taxable and have last year’s income tax return and tax documents handy for reference.”
H&R Block also noted changes in tax laws for this year.
“Tax laws change every year—but 2025 is different. With the One Big Beautiful Bill Act (OBBBA), there were sweeping changes to the tax code, and some could put extra money back in your pocket when you file taxes in 2026,” H&R Block noted. “An IRS new tax rule for digital income/assets means you may see Form 1099-DA if you traded in crypto or used crypto or other digital assets to pay for goods or services through a broker. While digital asset sales have always been taxable, the form is brand new this year. It will be sent at the end of January or mid-February depending on the activity it’s reporting. Keep in mind, even if you don’t get the form, you’ll still need to report your income. If you put in extra hours in 2025, you could keep more of what you earned. A new tax rule from OBBBA will allow eligible workers to claim a deduction for qualified overtime pay – up to $12,500 for unmarried taxpayers, and $25,000 for married filing joint taxpayers. One of the tax changes for 2025 lets certain tipped workers get a tax break on up to $25,000 of tip income. The new rule covers a wide variety of workers, from food service and the hospitality industry to digital content creators and much more.”
And the changes do not end there, H&R Block continued.
“Homeowners and property owners may have heard the SALT deduction cap increased. The cap is now $40,000 – up from $10,000. This bumped cap may make it more advantageous for some to itemize. vs. standard deduction. This change could be one of the strategies to minimize taxes under 2025 tax rules, especially for those in states with higher state taxes,” H&R Block noted. “Another one of the 2025 tax changes to take note of is for seniors. Eligible taxpayers in this age group can now take an extra deduction of $6,000. While the provision is not a Social Security deduction, any income – including taxable Social Security income – could be lowered. If you sold items online via platforms like Etsy or Ebay or you were paid through apps like Venmo or PayPal, you could receive Form 1099-K. The new tax laws in 2025 increased the reporting threshold for this form back to $20,000 and 200 transactions. Keep in mind, you still need to report this income even if you don’t get a form.”
Bankrate also noted it is important to be on the lookout for scams this time of year.
“As tax season approaches, many people start getting phone calls, emails and text messages from entities claiming to be the IRS. These are scams,” Bankrate noted. “The IRS Web site has a list of registered tax preparers to help people avoid dishonest ‘professionals.’ Direct deposit is another safeguard. Set up direct deposit with the IRS if you expect a refund; if you owe money, be sure to send it through IRS Direct Pay. Taxpayers who don’t file returns and owe taxes, or who file but don’t pay taxes on time are risking serious penalties. The IRS can seize assets if necessary. If the IRS has been sending you letters because it found an error on your return or claims you owe back taxes, respond in writing – and don’t delay.”
