Tax Season: Everything you Need to Know
Dear Valued Clients,
As the 2025 tax season approaches, preparation and organization are the keys to a stress-free experience. This year brings new updates, important deadlines, and tools to streamline your filing process. Whether you’re gathering W-2s and 1099s, navigating updated tax brackets, or adapting to changes in income reporting thresholds, our team is here to guide you every step of the way. Please call the office if you need to schedule an appointment or send you a tax organizer. We appreciate your trust in our business and look forward to working with you again this year. Contact our office at 239-288-0977 if you have any questions or need information.
In this newsletter, we’ve compiled the essential dates, new tax rules, and strategies to help you maximize your savings and avoid potential pitfalls. Plus, we’re excited to offer Drake Portals, a secure and convenient platform for sharing and accessing your confidential documents.
Let’s work together to ensure your 2025 tax season is as smooth and successful as possible. Read on for everything you need to know to get started!
Key Tax Dates to Keep in Mind
January 27, 2025: The IRS begins accepting and processing 2024 tax returns.
April 15, 2025: The deadline to file your taxes, pay any owed amounts, or request an extension. Remember, an extension provides more time to file but doesn’t extend the payment deadline.
October 15, 2025: Final deadline for extended tax returns.
Employers must issue W-2 forms by January 31, 2025, so watch for important documents arriving soon from employers, banks, and brokers.
Updates on Tax Brackets and Deductions
Inflation adjustments have raised tax brackets by 5.4% for 2024, offering taxpayers more room before moving into higher rates.
Additionally, the standard deduction has increased to:
$14,600 for individuals
$29,200 for married couples filing jointly
These updates could impact your tax situation and savings.
Be Aware of Third-Party Payment Reporting Changes
If you’ve been paid through platforms like PayPal, Venmo, Etsy, or eBay, note that the income reporting threshold has been lowered. Payments totaling $5,000 or more will now trigger a 1099-K form, down from the previous threshold of $20,000.
This change highlights the importance of tracking all income sources carefully.
Protect Yourself from Tax Scams
Tax season is also a prime time for scams and fraudulent schemes. A common tactic involves impersonators claiming to be from the IRS. Remember:
The IRS never initiates contact by email, text, or social media to request personal or financial information.
Always verify the authenticity of any unexpected tax-related communications by contacting the IRS directly.
For more tips, visit the IRS’s Tax Scams and Fraud page.
Drake Portals: Secure, Convenient Document Sharing
To streamline document exchange, we’re introducing Drake Portals—a secure online platform for uploading, accessing, and sharing confidential tax documents.
With Drake Portals, there’s no need for printing, mailing, or emailing sensitive information. If you’re interested, contact us, and we’ll get you set up!
Start Preparing Today
The sooner you start gathering your tax documents and organizing your finances, the smoother your tax filing will be. If you have questions or need assistance, our team is here to help you navigate the season with confidence.
Let’s work together to make this tax season a success!
Warm regards,
Sue Wood
Waterstone Financial Tax Services
sue@waterstonefs.com