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Tax season is approaching. What you need to know to prepare

This year's tax season was predicted to be a bad one.  The IRS is short staffed, underfunded and underequipped, say experts.
Nick Youngson
/
Pix4free

Taxpayers can begin filing their 2025 federal income tax returns on Monday, Jan. 26.

The Internal Revenue Service (IRS) is reminding Americans that they may begin filing their 2025 federal income tax returns on Monday, Jan. 26. Taxpayers have until Wednesday, April 15 to file and pay any tax due.

Ahead of filing, the IRS says there are a few simple tips taxpayers can take now to prepare.

Create or access your IRS individual account
IRS individual online accounts are available 24/7 to view account information, make payments, manage communication preferences and protect tax information.

Review new 2025 tax law changes
This year, several new tax law provisions of the One, Big, Beautiful Bill become effective, which could impact federal taxes, credits and deductions.

Gather and organize records
Some examples of tax records include:

Understand reporting documents and requirements
Income from part-time work, gig activities or sales of goods and services is generally taxable. Form 1099-K, Payment Card and Third-Party Network Transactions, will be issued by payment card companies for any amount and by payment apps or online marketplaces, also called third party settlement organizations or TPSOs when payments to a payee exceed $20,000 and more than 200 transactions occur for the year.

Also, taxpayers who bought, sold or received digital assets, including cryptocurrency, stablecoins or NFT, may be required to report those transactions. Some taxpayers may also receive Form 1099-DA from brokers.

Additional information and other important resources can be found here.