Cloud-based, easy onboarding, e-file coverage for common individual and business entities, integrated e-signature and client organizers; good when you don’t want servers or VPNs
Keep “permanent books of account or records” sufficient to establish income, deductions, credits, and other return items, and retain them as long as their contents may become material to any internal revenue law administration.
Use Where’s My Refund to view the status for the current year and the two prior years. You’ll need your SSN/ITIN, filing status, and the original expected refund amount for the year you select
A charitable contribution is deductible only if verified under regulations. Keep records that substantiate the amount, date, donee, and nature of the gift in the year paid.
Check your status using Where’s My Refund on IRS.gov or the IRS2Go app. These tools have the most current status and update daily
Read the entire notice to identify the tax type, period, reason, response deadline, and how to reply
Cash donations: keep a canceled check, a receipt/acknowledgment from the charity showing the charity’s name, date, and amount, or other reliable written records with that information
Maintain encrypted backups to external media or reputable cloud storage; keep at least one offline/offsite copy and encrypt before uploading to the cloud
Make sure the name and SSN on the return match the Social Security card exactly. If your name changed (for example, marriage/divorce), update the Social Security Administration (SSA) first, then file or correct your return.
Enroll at EFTPS.gov, then you can schedule multiple estimated payments in advance and set a recurring cadence. Individuals can schedule payments up to 365 days ahead; businesses up to 120 days.
IRS Direct Pay: Make one-time payments from a checking or savings account with no fees. You can schedule in advance and get instant confirmation. Works for 1040-series balances, estimates, and more
Go to IRS.gov/account and select “Sign in to your Online Account” to view your federal tax account information. New users will be prompted to verify identity; have photo ID ready. 1
Entering incorrect credit amounts (for example, Child Tax Credit, Recovery Rebate Credit) instead of using IRS letters/Online Account to reconcile; the IRS adjusts these and it slows processing 1
If you use an ITIN, confirm it’s valid; expired ITINs can delay processing and refunds. The IRS accepts returns with expired ITINs, but renewal may be needed for smooth processing
A filing extension gives you extra time to submit your tax return, generally up to six months (typically until Oct. 15 for individuals).
he due date to file your 2024 federal individual income tax return is Tuesday, April 15, 2025. If you e-file, the transmission time in your time zone controls timeliness; if you mail, a timely postmark counts.
Contribute up to the annual elective deferral limit to your 401(k) or 403(b) and use age-50 catch-up if eligible. For reference, the IRS shows 2024 limits of $23,000 (401(k)/403(b)) and $16,000 (SIMPLE)
Most GRATs are structured as grantor trusts, so all trust income, deductions, and gains are taxed to the grantor while the grantor retains powers or interests that trigger grantor trust status. Under Rev. Rul. 85-13 principles
Amounts paid by reason of the insured’s death are generally excluded from the beneficiary’s gross income. Any interest paid on top of the death benefit (for example, if the insurer holds the proceeds and pays installments with interest) is taxable as interest income and should be reported accordingly.
Yes. A QCD is a direct transfer from your IRA to a qualifying charity that is excluded from your gross income. The basic QCD rules (age 70½ or older; direct trustee-to-charity transfer; only to section 170(b)(1)(A) organizations
Naming a beneficiary has no tax effect by itself. Taxation happens when benefits are paid. In general, a beneficiary includes in income the same portion of a retirement plan distribution the participant would have,
There’s no special change to gift tax reporting just because the recipient is a non‑U.S. person. U.S. gift tax is donor‑based: you file Form 709 for taxable gifts in the same way you would for gifts to U.S. persons.
For most non-spouse “designated beneficiaries,” an inherited IRA (traditional or Roth) must be fully distributed by December 31 of the 10th year after the year of the original owner’s death.
A conversion from a traditional, SEP, or SIMPLE IRA to a Roth IRA is treated as a distribution from the non‑Roth IRA and a rollover to the Roth IRA. The taxable portion equals the fair market value converted minus any after‑tax basis
For 2025, you can give up to $19,000 to each donee without using any lifetime exemption. A married couple can shield up to $38,000 per donee (via gift-splitting) if they consent and file Form 709 as required
The federal basic exclusion amount (estate and lifetime gift tax exemption) for decedents dying in 2025 is $13,990,000 per individual. 1
When you file a joint return, both spouses are jointly and severally liable for the entire tax, interest, and penalties. Innocent spouse relief can remove your responsibility for tax attributable to your spouse’s erroneous items
A CDP hearing is an independent review by the IRS Office of Appeals of a proposed levy or a filed Notice of Federal Tax Lien (NFTL). It is intended to ensure the action is warranted and appropriate, and that collection alternatives were considered first
You can request review by the IRS Independent Office of Appeals for most disputed matters (exam adjustments, penalties, liens/levies, interest abatement denials, OIC rejections).
An OIC is a binding agreement with the IRS to settle your tax liabilities for less than the full amount owed. The IRS generally will not accept an OIC if you can fully pay through an installment agreement or other means.
Returns are classified to determine the scope and where the case is worked: correspondence, office (TCO), or field (RA). RAs handle more complex cases and TCOs more limited issues; proper assignment is based on issue complexity and time expectations.
Read the notice carefully to identify the tax year, the issue, the amount (if any), and the response deadline. Many IRS notices allow about 30 days to respond; allow the IRS at least 30 days to reply back after you respond.
The One Big Beautiful Bill introduces significant changes to the itemized deduction framework that will fundamentally alter how taxpayers calculate their tax liability.
The One Big Beautiful Bill introduces a significant new tax benefit that allows taxpayers to deduct interest paid on qualifying auto loans for personal use vehicles
The One Big Beautiful Bill introduces significant enhancements to the Child Tax Credit that build upon the existing framework while providing increased benefits and permanent provisions.
The One Big Beautiful Bill introduces significant and permanent changes to the standard deduction structure that build upon the temporary increases established by the Tax Cuts and Jobs Act
The One Big Beautiful Bill represents a comprehensive tax reform proposal that fundamentally restructures the individual income tax system. Based on the available documentation, this legislation introduces significant changes to tax brackets, rates, and various deductions that would affect millions of American taxpayers.
Moving expenses for a new job in 2025 are not deductible unless you’re an active-duty military member. Learn about exceptions, record-keeping, and future eligibility.
Adopting a child can provide tax benefits like the Adoption Tax Credit and dependency exemptions. Learn how adoption impacts your tax return and maximize your savings.
If your spouse passed away in 2025, learn how to file taxes, including joint filing for 2024 and qualifying as a surviving spouse for future tax benefits.
Divorce impacts tax filing status and deductions. Learn how to determine your status, claim deductions, and plan for tax changes post-divorce.
There are several common reasons why your tax refund might be smaller than you expected this year. Understanding these factors can help you make sense of the difference between your anticipated and actual refund amount.
You can track the status of your tax refund through several official IRS methods. Here’s a comprehensive guide on how to check your refund status:
When you file your tax return electronically, you can generally expect to receive your refund within 21 days, though the exact timing can vary based on several factors.
Early withdrawals from retirement accounts in 2025 will generally be subject to both income tax and additional penalties, with certain exceptions. Here’s a comprehensive breakdown of the penalties and tax implications:
No, Roth IRA contributions are not deductible on your taxes. This is one of the fundamental differences between Roth IRAs and traditional IRAs.
Yes, contributions to an IRA can reduce your taxable income, but the deductibility depends on the type of IRA, your income level, and whether you or your spouse are covered by a retirement plan at work.
Yes, distributions from retirement accounts will generally be taxable in 2025, with specific tax treatment depending on the type of retirement account, the nature of the distribution, and your individual circumstances.
Freelancers, as self-employed individuals, have specific tax filing requirements that differ from traditional employees. Here’s a comprehensive guide to the tax forms freelancers need to file:
Yes, as a self-employed individual, you can deduct home office expenses on your tax return, but there are specific requirements you must meet to qualify for this deduction.
Self-employed individuals can deduct a wide range of business expenses on their tax returns. These deductions help reduce taxable income and the overall tax burden. Here’s a comprehensive breakdown of deductible expenses for self-employed individuals:
Yes, self-employed individuals generally need to pay federal income taxes as they earn income throughout the year. To the extent these taxes are not withheld, a taxpayer must pay estimated income tax on a quarterly basis.
You may qualify for the Earned Income Tax Credit (EITC) if you have earned income, meet income limits, and fulfill other requirements like filing status and residency.
The Saver’s Credit is a tax credit for low- to moderate-income taxpayers who contribute to retirement plans, with credits up to $1,000 per person.
You may qualify for the Premium Tax Credit if you buy insurance through the Marketplace, earn 100-400% of the Federal Poverty Line, and meet other requirements.
Yes, a $7,500 tax credit is available for new electric vehicles in 2025 under the Clean Vehicle Credit, subject to battery and mineral sourcing rules.
Yes! You can claim a 30% federal tax credit for energy-efficient appliances (up to $1,200/year) and 30% for solar panels (no annual limit) under IRS credits 25C and 25D.
The Adoption Tax Credit allows adoptive parents to claim up to $16,810 per child in 2024 for qualified expenses like legal fees and travel; it’s nonrefundable but can be carried forward for up to five years.
Yes, you can claim the Lifetime Learning Credit for continuing education courses—including non-degree, part-time, or professional development classes—at eligible institutions, with a maximum annual credit of $2,000 per tax return.
The American Opportunity Tax Credit (AOTC) offers up to $2,500 per eligible student for qualified college expenses, with up to $1,000 refundable—even if you owe no tax.
Yes, you can claim the Child and Dependent Care Credit for daycare costs if the care enables you to work or look for work and meets IRS eligibility rules.
For 2025, the Child Tax Credit is $2,000 per qualifying child under 17, with up to $1,700 refundable as the Additional Child Tax Credit.
Commuting costs for remote workers returning to the office are not tax-deductible, as they are considered personal expenses under IRS rules.
You may be able to deduct expenses for caring for an elderly parent at home if they qualify as your dependent and the expenses exceed 7.5% of your adjusted gross income; you might also qualify for the Dependent Care Credit or claim your parent as a dependent under certain conditions.
Mortgage insurance premiums (PMI) are not deductible for the 2024 tax year, as the deduction expired at the end of 2021. It is not available for subsequent tax years.
In 2025, adoption expenses can be claimed through the adoption tax credit, offering up to $17,280 per child, subject to income limitations. This credit reduces your tax liability dollar-for-dollar.
Legal fees may be deductible if they are business-related, tax-related, or tied to rental properties. Personal legal fees, including divorce costs, are typically not deductible.
Teachers can deduct up to $300 in classroom expenses in 2024, including supplies and professional development costs. Married educators can claim up to $600 jointly.
Union dues are not deductible on federal income tax returns for 2024 due to the TCJA suspension, lasting through 2025. Deductions may resume in 2026.
In 2025, most taxpayers cannot deduct moving expenses, except for active-duty military members moving under military orders.
Yes, you can deduct home office expenses if you work remotely, but you must meet IRS criteria like exclusive use and regular business activity.
To deduct charitable donations, itemize on Schedule A and give to qualified charities. Keep receipts and follow IRS rules for documentation.
You can deduct medical expenses that exceed 7.5% of your AGI if you itemize deductions—qualified costs include insurance, treatments, supplies, and more.
Yes, you can deduct up to $2,500 in student loan interest for 2025, subject to income limits and other eligibility rules—even if you take the standard deduction.
The standard deduction for 2025 is $15,000 (single), $30,000 (joint), and $22,500 (head of household), with additional amounts for age or blindness.
In 2025, long-term capital gains are taxed at 0%, 15%, or 20% based on income, while short-term gains are taxed as ordinary income up to 37%.
Report rental income and expenses on Schedule E (Form 1040). Include rent, deposits kept, and deductible costs like mortgage interest and depreciation.
Report RSU and stock option income on Form W-2; sales go on Form 8949 and Schedule D. ISOs may also require AMT reporting on Form 6251.
Report cryptocurrency sales, trades, or income on IRS Form 8949 and Schedule D; mining and staking rewards go on Schedule 1 or Schedule C as income.
No, you don’t pay federal tax on an inheritance in 2025, but income from inherited assets or state-level taxes may apply depending on your location.
Yes, U.S. citizens and resident aliens must report all worldwide income, including foreign income, on their U.S. tax return, unless legally exempt.
Life insurance payouts are generally not taxable, but interest, installment payments, employer-owned policies, and some transfers may trigger taxes.
Yes, you must report all interest earned on savings accounts as income on your tax return, even if you don’t receive a 1099-INT.
Alimony received in 2025 is taxable only if your divorce agreement was executed before 2019 and hasn’t been modified to exclude it from income.
Scholarships and grants are tax-free if used for tuition and required expenses by degree candidates, but amounts used for room, board, or compensation for services are taxable.
Gambling winnings are fully taxable and must be reported; losses can be deducted only if you itemize and cannot exceed your reported winnings.
Unemployment benefits remain taxable in 2025 under current IRS rules—recipients should report them as income and consider tax withholding.
Social Security benefits may be taxable depending on your income—up to 85% could be taxed if your combined income exceeds IRS thresholds
Selling items online? Report all income—business sales go on Schedule C, personal gains may be taxable, and losses generally aren’t deductible.
Report side hustle income on Schedule C if it’s a business, or Schedule 1 if it’s a hobby—track all income, even without a 1099 form.
Gig workers don’t file Form 1099-NEC themselves; it’s issued by payers. Still, all income must be reported, even without receiving the form.
Yes, income from freelance or gig work like Uber or Etsy must be reported and may require paying self-employment tax if earnings exceed $400.
Learn the rules for claiming dependents in shared custody situations, including the custodial parent’s rights, Form 8332, and noncustodial parent exceptions.
Yes, you can claim your elderly parent as a dependent if you provide more than half of their support. Learn the requirements and benefits of claiming them.
Yes, you can file as Head of Household if you’re unmarried and support a dependent. Learn the requirements and benefits of this filing status.
Learn how to file taxes if your spouse passed away in 2025, including options for joint returns and qualifying surviving spouse status. Seek professional help if needed.
If you marry in 2025, you can file jointly for the 2025 tax year. Filing jointly offers tax benefits but comes with shared responsibility for the tax debt.
To determine your filing status, consider options like Single, Married, Head of Household, or Qualifying Surviving Spouse. Status affects tax rates and deductions.
Not all states have income tax. Seven states, like Texas & Florida, don’t tax wages. State tax laws differ from federal in rates, deductions, and structures.
Moved between states in 2025? You’ll likely need to file part-year resident tax returns for both states. Learn how to allocate income, claim credits, and file correctly.