Only one month he remains in the 2025 tax return season. Before the deadline on April 15.
As of March 7, the Internal Revenue Service (IRS) received fewer refunds than in the same period 2024, but the average refund is 5.7% higher, according to IRS data.
Despite the larger checks, the tax season can be particularly stressful. One research intuit credit karma and qualtrics revealed that almost a third of the workers You want to cry Just thinking about the tax -to -apply.
To alleviate some of these worries (and tears), Yahoo Finance asked professional advisers about their best advice and reminders for the 2025 tax season.
From March 1, the IRS processed 98.8% of the reports he received, returning $ 124.8 billion to taxpayers.
“In our practice we see that more clients are actually getting a refund this year,” Tax Partner Gordon Andrew Gordon said Yahoo Finance.
Some Americans may expect more checks this year because of recent life changes, Gordon said.
“One of the most significant loans or deductions is a tax loan for children,” Gordon said. “And so if you had a child during the year, you can get an additional $ 2,000 tax for taxes, and up to $ 1,700 from that comes back or will come back directly.”
The tax law itself can be another reason for a larger refund.
“We have seen that the standard deduction, which many are taking instead of increasing to $ 14,600 this year,” Gordon said. “And at the same time, the tax brackets themselves, the amount in each bracket increased with inflation. So if your revenues remained exactly the same, you will continue to get a bigger return because there are larger tax groups.”
Still, there are reasons why you may not want to check fat from the IRS.
“If you get a big refund, it’s not necessarily a good thing,” Gordon said. “I keep heard from people:” Hey, I got a big refund, “but the reality is that you gave the Government a useless loan.”
Turbotax Lisa Greene-Lewis expert explained that if they are not satisfied with the tax return this year, you can Adjust your denial. This may mean a smaller return next year, but more money in your pocket every month.
According to a 2024. Bankruptcy survey36% of the US adults in the United States earn additional income by side crowds. And with the growth of uncomfortable earnings on Platforms to Pay PEER-to-PEER, like Venmo and Paypal (Pypl), IRS seeks its cut.
“Many people, especially during a covid, created side crowds, created those companies,” executive director of KDAKarla Dennis said Yahoo Finance. “AND [the IRS knows] That there is a lot of uncomfortable revenue happening. So the IRS wants to break, get all the reported income and [make] sure they are collecting an appropriate tax amount. “
Shannon Philbrick of Freedom Tax Service, dressed as a statue of freedom, Masha with the driver’s sign in Westminster, Colorado, February 4, 2009 (Reuters/Rick Wilking) ·Reuters / Reuters
This means that the fillers that have earned more than $ 5,000 from paying on the 2024 network platforms will receive 1099-h and tax on that revenue. IRS reporting threshold decreases to $ 2,500 For calendar year 2025 and $ 600 in 2026.
New digital payment rules are noticeable for creatives and freelancers. However, there are some key ways in which free people can continue to maximize tax return.
“One of the things that [independent workers] should be done before they submit, we understand all those personal costs they use for a business transition and [they should] Start taking it as a business deduction, “Dennis said.” Things like their car, cell phones – things they pay from their pockets – their meals, travel. “
“In addition,, [freelancers] You want to have a separate bank account for their job, “Dennis added.” Do not receive funds because when you accept funds, [the] The IRS can classify these costs as personal, and you could lose those deductions. “
There are several major causes of retirement income tax, but one of the largest minimum distributions (RMD).
“[It’s] A little confusing, but the RMDS thing is that it is taxable income, ” Retirement decoding, Bob Powell said. “And when you take it, it might run into a higher tax rate.”
Powell noted that there are some steps you can take to avoid the unfavorable Tax effects of RMD.
“One is to start thinking about doing full or partial Roth conversion to reduce RMD when it comes time to take these distribution,” he said. “The second is the beginning of drawing before you reach the age of RMD, which could reduce RMD when you reach RMDs.”
“And then the last thing you can do is, if you have 70 1/2 and more, you can take something called a qualified charity distribution or QCD, which are not taxable,” Powell added. “And these are one way you can at least avoid the harmful effects of RMD.”
There are also less known loans that some retirees have access to.
“A request for retirement of merit, it’s a little known loan,” Greene-Lewis told Yahoo Finance. “You only get it for retirement investment. And that is up to $ 1,000 if you are free and $ 2,000 in marriage.”
Retirees can also maximize tax advantages with their health care premises.
According to Powell, most retirees enrolled in Medicare Part B pay a monthly fee of around $ 185. “But if you have what is called a modified adapted gross income above a particular threshold, you can pay anywhere from $ 259 a month to an increase of $ 628 … monthly, depending on your modified adapted gross income or ‘magic’, as they want to say,” he said.
Powell advised pensioners who fit into this category to be aware of their modified adapted gross revenue as well as their rate of taxable income when performing Roth conversion, drawing IRA, taking bonuses or severance pay or sale of property.
“If you push yourself into the higher sages, you will pay the extra charge,” he said.
