Filing your federal income tax return can seem daunting, but with proper preparation and understanding, the process becomes manageable. Here's a step-by-step guide to assist in making the 2025 tax season simple and stress-free.
Determine If You Need to File
Not everyone is required to file a federal tax return. Your obligation depends on factors such as your income level, filing status and age. For instance, for the 2024 tax year, single filers under 65 with an income above $14,600 are generally required to file. It's essential to consult the IRS guidelines to determine your specific filing requirements.
Gather Necessary Documents
Organizing your tax documents is crucial for accurate and timely filing. Ensure you have:
- Income Statements: Forms W-2 from employers and Forms 1099 for other income sources, such as freelance work or interest earnings.
- Deduction and Credit Documentation: Receipts or records for deductible expenses, such as education costs or medical expenses, and information on potential tax credits.
- Personal Information: Social Security numbers for yourself and any dependents, and bank account details for direct deposit of refunds.
Having these documents ready will streamline the filing process and help prevent errors and the need for amended returns.
The IRS Gather Your Documents page lists all the documents and forms you may need all in one place.
Choose Your Filing Method
The IRS offers several options for filing your tax return:
- IRS Direct File: A free online tool provided by the IRS for eligible taxpayers to prepare and file their federal tax returns electronically. It's user-friendly and guides you through the process.
- IRS Free File Program: Available to taxpayers with an adjusted gross income of $84,000 or less, this program partners with tax software providers to offer free filing services.
Professional Tax Preparers: If your tax situation is complex, you might consider hiring a certified public accountant (CPA) or enrolled agent. Ensure they have a valid Preparer Tax Identification Number (PTIN).
Be Mindful of Deadlines
For the 2025 tax season, keep these key dates in mind:
- January 27, 2025: The IRS begins accepting 2024 tax returns.
- April 15, 2025: Deadline to file your tax return or request an extension.
- October 15, 2025: Extended deadline if you filed for an extension.
Filing early can expedite your refund and reduce the risk of identity theft.
Understand Refunds and Payments
If you're entitled to a refund, opting for direct deposit can expedite the process. Conversely, if you owe taxes, explore payment options like installment agreements to manage your obligation. The IRS Online Account allows you to view your balance, make payments, and set up payment plans.
Important Tax Credits and Deductions
The Earned Income Tax Credit (EITC) is a federal tax credit designed to benefit low-to-moderate-income workers, particularly those with children. It reduces the amount of taxes owed and may result in a refund. The main goal of the EITC is to provide financial relief and encourage work.
For 2025, new or modified tax credits and deductions may be introduced. These may include changes to credits for education, energy-efficient home improvements, or child-related benefits. Always check with reliable sources to ensure you're not missing out on any new tax breaks.
Seek Assistance If Needed
If you have questions or need help, consider the following resources in West Virginia:
- IRS.gov has an extensive array of online resources
- WV Tax Division Free File Options
- Legal Aid WV
- WVU iServe
Many offices offer free tax preparation services through programs like VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly).
- Tax Assistance for Low-Income and Elderly Individuals: These programs can help individuals who are eligible, providing free tax preparation by certified volunteers. Some services available in West Virginia:
- West Virginia Alliance for Sustainable Families (WVASF)
- Legal Aid of West Virginia
- Mountain Heart Community Services
- Check with your local United Way, Community Action Association, or other similar organizations.
Remember, the IRS website is a comprehensive resource for forms, instructions, and guidance. Submitting taxes can be a complex process, but there are a variety of resources are available to make it easier. Taking the time to prepare and utilize available tools can make filing your taxes successful, while also being less stressful!
Lauren Weatherford, associate professor and Extension Agent – Fayette and
Nicholas Counties
Financial Literacy Education Team