Tax Season is Here – Are You Ready?

With the 2025 filing season upon us, the Internal Revenue Service encouraged taxpayers to take key steps now to prepare for filing their 2024 federal income tax returns next year.

“The IRS continues to improve taxpayer services to help people prepare for tax season with more digital tools and options available,” according to an IRA media release. “The IRS encourages taxpayers to sign up now for an IRS Online Account to make tax season easier and help safeguard their tax information.”

With an IRS Online Account, individuals can view key details from their most recent tax return, such as adjusted gross income; get account transcripts to include wage and income records; sign tax forms like powers of attorney or tax information authorizations; view and edit language preferences and alternative media; receive and view IRS electronic notices; view, make and cancel payments and set up or manage payment plans and check balances, according to the release.

New for the 2025 filing season, the IRS will accept Forms 1040, 1040-NR and 1040-SS even if a dependent has already been claimed on a previously filed return, as long as the primary taxpayer on the second return includes a valid IP PIN. This change will reduce the time for the agency to receive the tax return and accelerate the issuance of tax refunds for those with duplicate dependent returns.

Taxpayers who received more than $5,000 in payments for goods and services through an online marketplace or payment app in 2024 should expect to receive a Form 1099-K this month. A copy of this form will be sent to the IRS as well.

Just like in previous filing years, taxpayers must report all digital asset-related income when they file their 2024 federal income tax return. A digital asset is property that is stored electronically and can be bought, sold, owned, transferred or traded. Examples include convertible virtual currencies and cryptocurrencies, stablecoins and non-fungible tokens (NFTs), the release states.