Like it or not, it’s officially tax season – the time of year when millions of taxpayers are gathering documents and crunching numbers in anticipation of the annual filing deadline. Whether you’re preparing your own returns or working with a tax professional, the more you know before you file, the easier the process will be. You may even find ways to keep more money working for you.
This year’s tax filing deadline is April 15
The Internal Revenue Service (IRS) began accepting tax returns on January 27, 2025. With few exceptions, taxpayers are required to file their 2024 federal returns and pay any taxes due by April 15, 2025. While anyone can file for an extension, any taxes owed must be paid by April 15th to avoid penalties. Exceptions to this include victims of certain natural disasters and members of the military serving in a combat zone.
Victims of natural disasters get more time
If you lived in a federally declared disaster area, the IRS may grant you an extension to file and pay your taxes. For example, taxpayers affected by Hurricane Helene in September 2024 have until May 1, 2025 to file federal individual and business tax returns and make tax payments. Taxpayers in Southern California who have been affected by the wildfires that began on January 7, 2024 have until Oct. 15, 2025 to file their 2024 federal tax returns. For additional information on these or other qualifying circumstances, visit IRS.gov
The standard deduction is higher this year
Taxpayers who do not have enough qualified deductions to itemize on their returns can take the standard deduction to help reduce taxable income. For tax year 2024, the standard deduction is $14,600 for single filers and for those who are married but filing separately, an increase of $750 from 2023. For married couples filing a joint return, the standard deduction is $29,200, up $1,500 from 2023. And it gets even better with age. For 2024, those age 65 and older get an additional standard deduction of $1,950 if you are single or file as head of household. If you’re married filing jointly or separately, the extra standard deduction amount is $1,550 per qualifying individual. And if you are 65 or older and blind, the extra standard deduction for 2024 is $3,900 if you are single or filing as head of household, and $3,100 per qualifying individual if you are married, filing jointly or separately.
You can take certain deductions without itemizing
If you claim the standard deduction, you can’t take deductions for out-of-pocket medical expenses, state and local taxes, gifts to charity, and certain other itemized deductions found on Schedule A of your federal tax return. However, you can take certain adjustments to income, also referred to as above-the-line deductions, without itemizing. These include but are not limited to:3
- Health savings account (HSA) contributions
- Contributions to a traditional IRA
- Educator expenses
- Student loan interest
- Penalties on early withdrawals from retirement savings accounts
- Alimony payments (for divorce agreements dated before Jan. 1, 2019)
- Moving expenses for members of the military
- 50% percent of self-employment tax
- Contributions to SEP, SIMPLE and qualified retirement plans for self-employed people
- Health insurance premiums for self-employed people
For a complete list of adjustments to income, visit IRS.gov.
Filing electronically is faster and safer
If you’re expecting a refund, according to the IRS, it usually takes less than three weeks to get your refund if you file electronically and sign up for direct deposit. You can even track your refund with the agency’s “Where’s My Refund?” tool available at IRS.gov.
To protect against scammers seeking to file a fraudulent tax return using your Social Security number (SSN) or individual taxpayer identification number (ITIN), you can obtain a six-digit IP PIN number from the IRS. The IP PIN is known only to you and the IRS and helps to verify your identity when you file your return. If you are a confirmed victim of tax-related identity theft and we have resolved your tax account issues, the IRS will mail you a notice with your new IP PIN each year.4
If you have questions about tax-smart strategies to keep more of your hard-earned income working for you, contact the office to schedule a time to talk.
1)“Get an extension to file your tax return.” IRS.gov, 4 DEC 2024, https://www.irs.gov/filing/get-an-extension-to-file-your-tax-return.
2)“Topic no. 551, Standard deduction” IRS.gov, 02 JAN 2025, https://www.irs.gov/taxtopics/tc551.
3)“Definition of adjusted gross income.” IRS.gov, 16 JAN 2025, https://www.irs.gov/e-file-providers/definition-of-adjusted-gross-income.
4)“Get an identity protection PIN (IP PIN).” IRS.gov, 27 JAN 2025, https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin
This information was written by KRW Creative Concepts, a non-affiliate of the Broker/Dealer.
This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.
Some IRAs have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney. For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Firms nor any of its representatives may give legal or tax advice.