Tax season is here, and you have until April 15 to file your return with the IRS. If you want to avoid the stress of a looming deadline, begin organizing as early as possible.
“Don’t wait until the last minute, but don’t rush either,” advises Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals.
Collecting all your documents, setting up direct deposit, and keeping copies of your tax returns are among the best practices for preparing to file. This year, due to theRepublican tax and spending bill signed by President Donald Trump over the summer, there are new deductions taxpayers should be aware of.
Among them are no tax on tips, no tax on overtime, deductions for car loan interest, and deductions for people who were 65 or older by December 31, according to Miguel Burgos, a certified public accountant and TurboTax expert.
The average refund last year was $3,167. Analysts project it could be about $1,000 higher this year due to changes in the tax law. More than 165 million individual income tax returns were processed last year, with 94% submitted electronically.
If the process feels overwhelming, there are many free resources available to help you navigate it.
Key information to know:
- While the required documents vary by individual circumstances, here is a general list of what everyone should have:
- Social Security number
- W-2 forms if you are employed
- 1099-G if you are unemployed
- 1099 forms if you are self-employed
- Savings and investment records
- Records of eligible deductions, such as educational expenses, medical bills, charitable donations, etc.
- Tax credits you may qualify for, such as the child tax credit and retirement savings contributions credit
To view a more detailed document checklist, visit the IRS website. (https://www.irs.gov/newsroom/tax-filing-step-1-gather-all-year-end-income-documents)
O’Saben suggests gathering all documents in one central place before starting your return and also having the previous year’s paperwork on hand. You can also create an identity protection PIN with the IRS to guard against identity theft; once created, the PIN must be used to file your tax return. (https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin)
Adjustments to the standard deduction
The standard deduction for single filers is $15,750 this year. For married couples filing jointly, it rises to $31,500. For heads of household, the standard deduction is $23,625.
State and local tax deductions (SALT) changes
The SALT deduction cap has increased from $10,000 to $40,000. This adjustment is part of the Working Families Tax Cut enacted in July 2025.
“This is a substantial benefit, especially for states with higher state income taxes like California, New York, and New Jersey,” notes Keith Hall, president and CEO of the National Association for the Self-Employed and a certified CPA.
The SALT deduction is a federal deduction for certain state and local taxes paid during the year. The cap had remained at $10,000 since it began in 2018.
If you’ve never itemized SALT deductions before, you might want to consider doing so this year. To determine whether itemizing is the right choice, O’Saben suggests asking yourself:
- Did you pay state taxes?
- Did you pay property taxes?
- Do you have mortgage interest?
- Do you have charitable contributions?
Deductions for tips
The so-called “no tax on tips” is not entirely accurate. The new deduction applies only to qualified tips and is subject to income limits.
“Tips can be cash or electronic, but they must be voluntary (tips),” Burgos explains.
The annual deduction maximum is $2,500. The deduction phases out for modified adjusted gross income above $150,000 for individuals or $300,000 for joint filers. The deduction is limited to certain tipping-heavy industries, including bartenders, food servers, musicians, and housekeeping staff.
To claim this new deduction, you’ll need to complete a new form called Schedule 1-A.
Other Schedule 1-A deductions
Schedule 1-A is an IRS form used to claim four deductions that originate from the tax and spending bill: changes to the SALT deduction, the deduction for qualified tips, and the car loan and senior deduction options.
Direct file for free is not offered this year. For those earning $89,000 or less, IRS Free File offers free guided tax preparation with eight partner options, such as TaxAct and FreeTaxUSA. (https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free)
Beyond major tax software providers, you can hire licensed professionals, such as certified public accountants. The IRS maintains a directory of tax preparers across the United States. (https://irs.treasury.gov/rpo/rpo.jsf)
The IRS also funds two programs offering free tax help: Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). If you earn $69,000 or less, have a disability, or are limited in English, you may qualify for VITA; if you are 60 or older, you may qualify for TCE. The IRS hosts a site to locate VITA and TCE clinics. (https://irs.treasury.gov/freetaxprep/)
To avoid common IRS trouble, double-check several details:
- Verify your name and Social Security number on records, especially if you’ve changed your name after marriage.
- Ensure you can access all tax statements online if you’ve gone paperless, as some documents may be accessible only online.
- Report all income from any second job by including the appropriate W-2 or 1099 forms.
In general, an IRS audit can occur if you make mistakes or omit items, and it will require additional documentation.
The child tax credit currently amounts to $2,200 per qualifying child, but only $1,700 is refundable. To claim the Additional Child Tax Credit, you must have at least $2,500 in income for the tax year.
If your income is not higher than $200,000 (or $400,000 for joint filers), you can claim the full Child Tax Credit for each qualifying child. Higher earners may still qualify for a partial credit.
Further details on the child tax credit are available here: https://www.irs.gov/credits-deductions/individuals/child-tax-credit
Last September, the IRS began phasing out paper tax refund checks. If you expect a refund, the IRS recommends choosing direct deposit.
Tax season is a prime time for scams, warns O’Saben. Scams can appear via phone, text, email, or social media, and the IRS does not contact taxpayers through those channels. Occasionally, scams involve tax preparers, so ask lots of questions. If a preparer promises a larger refund than you’ve received in prior years or cannot show you the entries on your return, that could be a red flag. Always keep copies of your tax returns for five to seven years in case of an audit.
The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article itself is solely human-written.
