Get Ready for 2025: Tips to Simplify Your US Tax Filing Process

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As we approach the 2025 tax season, now is the time to start preparing for your 2024 federal income tax filing.

The IRS is continually improving its digital tools to make tax filing more straightforward and secure. Here are some essential steps taxpayers can take now to ensure a smooth filing process when tax season begins.

1. Set Up an IRS Online Account

Creating an IRS Online Account is one of the easiest ways to prepare for tax season. This secure online portal allows taxpayers to:

• Review details from the most recent tax return (e.g., adjusted gross income).
• Request an Identity Protection PIN (IP PIN) to safeguard against identity theft.
• Access account transcripts, including wage and income records.
• Make payments, set up or adjust payment plans, and track balances.
• Receive IRS notices electronically and view or cancel payments.

The IRS encourages all taxpayers to sign up now to simplify filing and ensure their personal information stays secure.

2. Get Your Identity Protection PIN (IP PIN)

An IP PIN is a six-digit number that helps protect your tax information from fraud. It ensures that only you can file a tax return using your Social Security Number or ITIN.

Starting in 2025, the IRS will accept Form 1040 returns—even if a dependent has already been claimed on a previous return—provided the primary taxpayer includes a valid IP PIN. This change speeds up the processing of returns and refunds.

You can easily request your IP PIN via your IRS Online Account. If you’re unable to use the online service, alternative options like in-person verification are available.

3. Don’t Miss the Estimated Payment Deadline

If you have income from self-employment, unemployment benefits, or other non-wage sources, you may need to make additional tax payments. For the 2024 tax year, the final quarterly estimated payment is due by January 15, 2025. Use the IRS Tax Withholding Estimator to check if additional payments are necessary.

4. Understand the 1099-K Reporting Changes

For those who made over $5,000 in payments for goods or services via online platforms or payment apps, expect to receive a Form 1099-K in early 2025. Remember, income from these transactions is still taxable, whether or not you receive a 1099-K.

Be sure to report all earnings, including those from side jobs or selling goods online, to avoid penalties.

5. Report Digital Asset Income

If you engaged in digital asset transactions, such as cryptocurrency or NFTs, during 2024, you’ll need to report them on your tax return. This includes buying, selling, or exchanging digital assets. Be prepared to answer a question on your 2024 tax form regarding any digital asset activities, and ensure you have records to back up your transactions, including fair market values.

6. Know When to Expect Your Refund

Most refunds are issued within 21 days of filing, but some returns may take longer to process due to errors, missing information, or possible identity theft. If you are claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), your refund may be delayed until mid-February due to mandatory reviews.

7. Organize Your Tax Documents Early

Keep track of your important tax documents, such as W-2s, 1099s, and records of digital asset transactions.

Being organized will make filing easier and help avoid delays in processing your return. The IRS advises using a paper or electronic system to store all necessary documents in one place.

8. Use Direct Deposit for a Faster Refund

The quickest and safest way to receive your refund is by choosing direct deposit. Taxpayers who don’t have a bank account can open one at an FDIC-insured bank, a participating credit union, or through the Veterans Benefits Banking Program.

You can also have your refund deposited onto a prepaid debit card or mobile payment app, as long as the provider supports direct deposit.

9. Take Advantage of Free Filing Options

The IRS offers several free filing options for eligible taxpayers. Over 70% of taxpayers qualify to file their return for free using IRS Free File software.

Taxpayers can also use IRS Free File Fillable Forms or Direct File, an online tool for simple state tax filings in participating states.

Additionally, low-income taxpayers and those who qualify for certain programs can receive free tax assistance through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.

Final Thoughts

Taking action now can help you avoid last-minute stress and ensure a smooth tax season in 2025. The IRS’s digital tools, such as the Online Account and the IP PIN, offer valuable resources to make filing easier and protect your personal information.

With a little preparation and organization, you’ll be ready to file with confidence when the time comes.

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