What you need to know before filing your taxes
Filing your 2025 federal income taxes (due in 2026) involves several key preparations, especially with recent changes from legislation like the **One Big Beautiful Bill** (also called the Working Families Tax Cut Act or OBBB). This law introduced new deductions and adjustments that could affect your return, refund, or tax bill.
The IRS opened the 2026 filing season on **January 26, 2026**, and accepts returns now. The deadline for most people is **April 15, 2026**. If you need more time, file for an automatic extension to October 15, 2026—but pay any owed taxes by April 15 to avoid penalties.
Do You Need to File?
Check if your gross income meets the thresholds (these align with the increased standard deduction for 2025). You generally must file if:
- **Under 65 at end of 2025**:
- Single: $15,750 or more
- Head of household: $23,625 or more
- Married filing jointly: $31,500 or more (both under 65) or $33,100 (one under 65)
- **65 or older at end of 2025**:
- Single: $17,550 or more
- Head of household: $25,625 or more
- Married filing jointly: $33,100 or more (one 65+) or $34,700 (both 65+)
Even if below these, file if you want a refund of withheld taxes, qualify for refundable credits (e.g., EITC, CTC), or had self-employment income over $400. Dependents and others have lower thresholds.
Gather Your Documents Early
Organize these before starting:
- W-2s (wages), 1099s (freelance, interest, dividends, gig work, etc.—including 1099-K for online sales if over thresholds)
- Records of deductions/credits (e.g., mortgage interest, student loan interest, charitable donations, medical expenses if itemizing)
- Social Security numbers or ITINs for you, spouse, dependents
- Prior-year return (helpful for reference)
- Bank info for direct deposit (required for fastest refunds; paper checks are largely phased out)
New for 2025: Forms may reflect tips, overtime, or auto loan interest—report accurately.
Key Changes and Opportunities for 2025
The **One Big Beautiful Bill** added several provisions effective for 2025 returns:
- **Higher standard deduction** — Reduces taxable income without itemizing:
- Single: $15,750
- Head of household: $23,625
- Married filing jointly: $31,500
(Additional amounts if 65+ or blind)
- **Increased SALT deduction cap** — State and local taxes (including property/income) up to $40,000 (from $10,000), though it phases out at higher incomes.
- **New deductions** (often claimed on new Schedule 1-A):
- No tax on tips (up to certain limits, e.g., $25,000 qualified tips)
- No tax on overtime pay (up to limits, e.g., $12,500 single/$25,000 joint)
- Auto loan interest deduction (up to $10,000 for qualifying U.S.-assembled vehicles)
- Enhanced senior deduction (additional $6,000 single/$12,000 joint if 65+)
- **Child Tax Credit** and other credits — Potentially higher or adjusted; check eligibility for CTC (up to ~$2,200 per child), EITC, etc.
- Other notes: New forms/documentation for some credits; possible impacts on digital assets/crypto (1099-DA if applicable).
These could mean larger refunds (average ~$3,800+ in some reports) or lower taxes—review if you qualify.
Filing Tips
- **File electronically** with direct deposit for fastest refunds (usually within 21 days; EITC/ACTC refunds mid-February+).
- Use IRS Free File (if AGI ≤ certain limit), Direct File (in eligible states), or software/professionals.
- Avoid scams—IRS doesn't initiate contact via phone/text for urgent demands.
- If self-employed or complex, consider a tax pro due to new rules.
- Check IRS.gov for updates on OBBB provisions, tools like the withholding estimator, or your online account.
Plan ahead: Accurate filing avoids delays. If unsure about new deductions or eligibility, consult IRS resources or a professional. This is general info—your situation may vary.