What to Expect This Tax Season in 2025: Key Changes & Important Deadlines
As the 2025 tax season begins, staying informed about the latest updates is crucial for individuals and businesses alike. From adjusted deductions to new tax credit opportunities and enhanced IRS enforcement measures, understanding the changes ahead can help you confidently navigate your tax filings.
To help you prepare, we’ve outlined the key filing deadlines, notable tax law updates, and strategic tax planning tips for the 2024 tax year. For additional information visit Irs.gov.
Key Filing Deadlines for the 2025 Tax Season
Mark these important dates on your calendar to ensure you stay on track for filing and payments:
January 29, 2025 – The IRS officially opens tax season, and electronic filing begins.
April 15, 2025 – The standard deadline to file individual tax returns or request an extension.
October 15, 2025 – The final deadline to file if you request an extension.
Estimated Tax Payment Deadlines – For self-employed individuals or those with income not subject to withholding, quarterly estimated taxes are due on:
April 15, 2025
June 17, 2025
September 16, 2025
January 15, 2026
Late filings or missed payments can lead to penalties, so plan and file ahead of the deadlines.
Noteworthy Tax Law Changes for 2024 Filings
This tax season brings several updates that could influence how much you owe or what you get back in refunds. Here are the key changes to be aware of:
Standard Deduction Adjustments
To account for inflation, the standard deduction has increased across filing categories:
Single filers: $14,600 (up from $13,850 in 2023)
Married filing jointly: $29,200 (up from $27,700 in 2023)
Head of household: $21,900 (up from $20,800 in 2023)
Child Tax Credit Updates
The maximum credit remains $2,000 per qualifying child under 17. However, a larger portion may now be refundable, depending on income levels.
Changes to 1099-K Reporting
The IRS has delayed enforcement of its previously announced $600 reporting threshold for third-party payment platforms (e.g., Venmo, PayPal). For 2024 filings, the $20,000 threshold remains in place.
Retirement Contribution Limits
Tax-advantaged retirement savings limits have been raised:
401(k): $23,000 (up from $22,500 in 2023)
IRA: $7,000 (up from $6,500 in 2023)
Catch-up Contributions: Unchanged for those 50 years and older.
IRS Enforcement & Refund Processing Updates
This year, the IRS is focusing on improving its taxpayer services while also increasing scrutiny where needed. Key updates include:
Faster Refunds: Additional funding for customer service is aimed at expediting refund processing times.
Targeted Audits: High-income earners and small businesses with significant deductions may see greater levels of scrutiny.
AI-Powered Audits: The IRS is implementing AI technology to uncover tax discrepancies with greater precision and efficiency.
If you fall into one of these categories, seeking advice from a tax professional is essential to ensure compliance and avoid unnecessary surprises.
Tax-Saving Strategies for 2025
The evolving tax landscape means it’s more important than ever to take advantage of smart planning strategies. Here are a few tips to help you maximize your tax savings this season:
Maximize Retirement Contributions: Make the most of higher contribution limits to reduce taxable income and grow your retirement nest egg.
Practice Tax-Loss Harvesting: Offset capital gains by selling underperforming assets, reducing your tax liability.
Stay Current on Estimated Taxes: Self-employed? Ensure quarterly taxes are paid on time to avoid penalties.
Leverage Energy Tax Credits: Homeowners who install solar panels or make energy-efficient upgrades may qualify for enticing tax breaks.
By planning ahead, you can unlock potential savings and remain compliant with tax laws.
Looking Ahead: Be Tax Ready in 2025
Tax laws are constantly changing, but with the right preparation, you can minimize stress and maximize your financial benefits. Whether you're filing individually or navigating the complexities of business taxes, working with a financial professional can help you uncover opportunities and optimize your returns.
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This is for informational purposes only and does not serve as personal advice -information provided by Irs.gov and is subject to change. Please speak to a qualified representative regarding your unique circumstances. Links within this blog are not associated to Cornerstone Wealth and are subject to change. Hyperlinks will take you to a third-party website whose content Cornerstone Wealth does not control. Investment advisory services offered through Cornerstone Wealth Group, LLC dba Cornerstone Wealth, an SEC registered investment adviser.
