How to Prepare for Tax Season: What to Do Now

A new year always brings fresh forms, fresh limits—and fresh opportunities to keep more of what you earn. If you’re wondering how to prepare for tax season while filing your 2025 federal return during the 2026 season, this practical guide will help you get organized early, claim the right deductions and credits, and hit the key dates with confidence. Most taxpayers have until Wednesday, April 15, 2026 to file and pay; if you need more time to file, you can request a six-month extension (but you still need to pay any amount due by April 15).

Note, if you e-file and choose direct deposit, most refunds are issued in less than 21 days. You can track yours with Where’s My Refund? on IRS.gov. Refunds that include the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) are held until mid-February by law.

What’s new for 2026 filing (2025 tax year)

• Standard deduction amounts (2025): Single $15,750; married filing jointly $31,500; head of household $23,625. Note, taxpayers age 65+ (and/or blind) also receive an additional standard deduction: $2,000 for single or head of household filers; or $1,600 per eligible spouse for married couples filing jointly.
• Tax brackets: The 7-bracket structure remains (10%–37%), with 2025 thresholds adjusted for inflation (e.g., top rate applies above $626,350 single/$751,600 married filing jointly).
• SALT cap expanded for 2025: The cap on state and local tax (SALT) deductions is $40,000 (reduced at very high incomes, but not below $10,000). For complete information, see line 5e and “What’s New” in the official Schedule A (Form 1040) instructions.
• New “Schedule 1-A” deductions: Starting for the 2025 tax year (filed in 2026), Schedule 1-A (Form 1040) consolidates four temporary deductions. These include potential deductions for qualified tip income, qualified overtime pay, qualified passenger vehicle loan interest on loans taken out after December 31, 2024 for new vehicles meeting IRS criteria (interest deduction capped and subject to income-based phaseouts), and an enhanced deduction for seniors (age 65+). Eligible taxpayers claim these on Schedule 1-A rather than Schedule A.

Additional inflation-related tax updates for 2025

• Retirement plan contributions
  • The 2025 contribution limit for 401(k), 403(b), 457 plans and the Thrift Savings Plan is $23,500 (up from $23,000 in 2024).
  • A $7,500 catch-up still applies for those age 50 or older, and higher catch-up limits may be available for certain individuals ages 60–63, depending on plan rules.
• IRA contributions
  • The annual limit remains $7,000, with an additional $1,000 catch-up for individuals age 50 or older (no change from 2024).
• Health Savings Accounts (HSAs)
  • Contribution limits increased to $4,300 for self-only coverage and $8,550 for family coverage.
  • Individuals age 55 or older may contribute an additional $1,000.
• Medical expense deduction
  • The itemized deduction threshold is unchanged — only unreimbursed medical expenses exceeding 7.5% of adjusted gross income are deductible.
• Child tax credit
  • For 2025 returns, the credit increased to up to $2,200 per qualifying child under age 17, compared to $2,000 previously.
  • As in prior years, up to $1,700 may be refundable through the Additional Child Tax Credit, subject to income rules.

Your stress-proof tax-prep checklist

1) Gather personal identification numbers and last year’s return

• Social Security or Tax ID numbers for yourself, spouse and dependents.
• If you use an Identity Protection PIN, have it ready. Anyone can opt in to get one as extra protection against refund fraud via your IRS Online Account.
• Keep a copy of last year’s federal and (if applicable) state returns to speed up this year’s filing.

2) Collect all income documents

By providing these documents you’ll confirm the money you received during the previous year.

• W-2s from employers (employers must furnish by January 31).
• 1099s, as applicable (e.g., 1099-NEC, 1099-INT, 1099-DIV, 1099-R). For 2026, most 1099-NEC copies to you and the IRS are due January 31 (or the next business day if it falls on a weekend/holiday).
• Brokerage consolidated statements, K-1s and 1099-K (if you receive payments via platforms—watch for issuer communications).

3) Decide: standard deduction or itemize?

With the 2025 standard deduction higher again, many households may decide to itemize only if mortgage interest, state and local taxes, charitable gifts and medical expenses exceed the standard deduction. See Schedule A instructions for the updated SALT cap and rules or work with your financial professional to choose the right approach for you.

4) Identify your deductions

If you do decide to itemize, make sure you have the right documentation for each of these popular tax deductions. Deductions can help reduce your taxable income which could lead to a lower tax bill.

• Retirement account contributions: You can deduct contributions to a traditional IRA or self-employed retirement account if you stay within the contribution limits.
• Educational expenses: Students may be eligible for education credits for tuition and other fees. Form 1098‑T (issued by the school) provides the information you’ll use to claim these credits on Form 8863 with your Form 1040. Form 1098‑E (issued by your loan servicer) reports student loan interest, which may be deductible separately as an adjustment to your income.
• Medical bills: If your medical bills total more than 7.5% of your adjusted gross income you may qualify for tax savings. You should also be aware if you need to use an HSA form. Learn more about the purpose of an HSA form at HealthCare.gov.
• Property taxes and mortgage interest: If your mortgage payment includes an amount escrowed for property taxes, it will be included in the 1098 form that your lender will send you.
• Charitable donations: Make sure your generosity pays off during tax season by keeping the receipts from your charitable donations.
• State and local taxes: Other taxes like state or local income or sale taxes can be deducted up to $40,000, subject to phaseouts.

5) Know the new Schedule 1-A opportunities

• If you have significant reported tips in a covered occupation, overtime premium, qualifying car-loan interest (new vehicles meeting IRS criteria; loan taken out after December 31, 2024), or you’re 65+, review your eligibility for the new Schedule 1-A deductions. The IRS flags them in the 2025 Schedule 1-A instructions, and you should check IRS guidance for detailed limits/phaseouts. Pro tip: Keep detailed payroll/tip logs and loan statements.

6) Maximize your contributions before Tax Day

• IRA and HSA contributions for 2025 can be made until April 15, 2026 (the federal filing deadline). Mark the contributions clearly as “2025.” If you file your taxes before April 15, you can still contribute, but you’ll need to file an amended 1040.
• 401(k)/403(b)/457/TSP contributions had to be made by December 31, 2025, but still matter for 2025 reporting (and for your 2026 planning).

7) Don’t overlook high-impact credits

Tax credits provide taxpayers with a dollar-for-dollar reduction on your tax bill. Tax credits are either nonrefundable, refundable or partially refundable. This is how the credit will be applied to your tax bill. Typically, tax credits are nonrefundable.

• Child Tax Credit (CTC): Up to $2,200 per qualifying child; up to $1,700 refundable as ACTC. You’ll complete Schedule 8812 with your Form 1040.
• Education credits
  • American Opportunity Tax Credit (AOTC): Up to $2,500 per eligible student (first 4 years; 40% refundable up to $1,000).
  • Lifetime Learning Credit (LLC): Up to $2,000 per return; unlimited years for eligible coursework.
• Saver’s Credit: A nonrefundable credit for lower-to-moderate incomes who contribute to retirement accounts—check Form 8880. (Eligibility rules on IRS.gov.)

Dates that matter (and why)

• January 31, 2026: W-2s and many key 1099s must be furnished by employers/payers.
• April 15, 2026 (Tax Day):
  • File your 2025 return or submit Form 4868 for an automatic six-month filing extension.
  • Pay any 2025 balance due to avoid late-payment penalties/interest.
  • Last day to make 2025 IRA and HSA contributions.
• Quarterly estimated taxes (2026): Typically due April 15, June 15, September 15, and January 15, 2027.

Filing taxes is an important task that requires paying attention to detail and adherence to deadlines. Be sure to stay organized and seek professional help if needed. Lastly, don’t forget to plan and research when is tax season each year. Hopefully you find this preparing for taxes checklist helpful to file your taxes correctly and avoid any potential penalties.

If you still have questions you can learn more about filling taxes for individuals and business owners at the IRS website.

FAQs

1) Can I still contribute for 2025 after New Year’s?

Yes. You can make 2025 contributions to IRAs and HSAs through April 15, 2026. Be sure to designate them for tax year 2025 when you contribute.

2) If I can’t finish my return by April 15, what happens?

File Form 4868 by April 15 to extend your filing deadline to October 15. An extension does not extend time to pay—estimate and pay any 2025 balance by April 15 to limit penalties or interest.

3) What if I’m waiting on a corrected or late form (W-2/1099)?

Employers and many payers must furnish forms by January 31. If something is missing or incorrect after early February, contact the issuer. The IRS reminds filers and businesses about the January 31 deadline for W-2s and Form 1099-NEC.

Disclosures

Representatives of Ameritas do not provide tax or legal advice. Please refer clients to their tax advisor or attorney regarding their specific situation.