Tax season is here! Remember to get organized and prepare for filing your return. Here’s some things you need to know to make the process smooth and stress-free:
✅Gather Your Documents – Ensure you have W-2s, 1099s, receipts for deductions, and any other relevant paperwork.
✅ Know Your Deadlines – The IRS filing deadline is April 15, 2025. If you need more time, you can file for an extension until October 15, 2025, but payments are still due in April.
✅ Check for Tax Law Changes – Several tax law updates for 2024 may impact your return including those below:
Adjusted income tax brackets due to inflation:
Increased standard deduction ($14,600 for single filers and married filing separately, $29,200 for married couples filing jointly, $21,900 for heads of household, ).
Higher retirement contribution limits:
Traditional and Roth IRA: $7,000 (catch-up contribution of $1,000 for individuals 50+)
401(k) plans: $23,000 (catch-up contribution of $7,500 for individuals 50+)
Expanded Child Tax Credit: The maximum tax credit per qualifying child is $2,000 for children under 17. For the refundable portion of the credit (or the additional child tax credit), you may receive up to $1,700 per qualifying child.
✅ Contribute to Retirement Accounts – Contributions to traditional and Roth IRAs for 2024 can be made until April 15, 2025, potentially reducing your taxable income.
📅 Important Dates to Remember:
✔ January 27, 2025 – IRS begins accepting tax returns.
✔ April 15, 2025 – Filing deadline and last day to contribute to an IRA for 2024.
✔ October 15, 2025 – Deadline for extension filers.
Start preparing now to avoid last-minute stress. Need help? Reach out to your Pearson & Company tax preparer today!
