2025 Tax Checklist -Easy Steps to Get Ready for Tax Season!

Being prepared helps you find all the credits and deductions you deserve. Let’s break down six (6) easy steps to get ready for tax season, making the process smoother for everyone.

Your filing status affects how much tax you pay and what deductions you can claim. The IRS has five main filing statuses:

Choosing the right status can save you money. For example, the standard deduction for married couples filing jointly is $31,500 for 2025, while single filers get $15,750. If you're not sure which status fits you, the IRS has a helpful tool on their website.

Start collecting all the papers you'll need to file your taxes. Having everything in one place makes the process much faster. Here's what most people need:

Don't forget to include a copy of last year's tax return. It can help you remember what deductions you took before and guide you through this year's process.

Deductions and credits directly reduce the amount of tax you owe. Many people miss out on these savings simply because they don't know what they qualify for.

Good tax software can help identify which deductions and credits you qualify for based on your answers to simple questions. This is often easier than trying to figure everything out on your own.

Contributing to retirement accounts like 401(k)s and IRAs can lower your taxable income. For 2025, you can contribute up to $23,500 to a 401(k) and $7,000 to an IRA if you're under 50. Those 50 and older can contribute even more.

You can make IRA contributions for the previous tax year until the tax filing deadline (usually April 15). This gives you extra time to reduce your taxable income even after the year ends.

If you haven't maxed out your contributions, consider adding more before the tax deadline. This is one of the easiest ways to reduce your tax bill while also building your retirement savings.

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Deciding how to file your taxes depends on how complex your situation is. There are three main options:

Best for: Simple tax situations with one or two income sources and standard deductions.

Cost: $0-$100 depending on software and features

Best for: Complex situations with multiple income sources, investments, or business income.

Cost: $200-$600+ depending on complexity

Best for: People with income under $73,000 who qualify for IRS Free File or VITA programs.

Cost: $0

If you're using tax software, look for one that offers audit support and can help identify deductions and credits you might miss on your own. Many banks and credit unions offer discounts on popular tax software.

The best time to prepare for next year's taxes is right after you file this year's return. Create a simple system to track tax-related items throughout the year:

Taking a few minutes each month to maintain your tax records will save hours of stress when tax season arrives again. Plus, you'll be less likely to miss deductions when everything is already organized.

The tax filing deadline is typically April 15, unless that date falls on a weekend or holiday. For the 2025 tax season (filing 2024 taxes), the deadline is April 15, 2025.

You can request an automatic six-month extension by filing Form 4868. This gives you until October 15 to file your return. However, an extension to file is not an extension to pay - you still need to estimate and pay any taxes owed by the April deadline to avoid penalties and interest.

The IRS recommends keeping tax records for at least three years from the date you filed your return. However, some situations require keeping records longer. For example, keep records related to property until at least three years after you sell or dispose of the property.