Tax season may feel far away, but understanding the rules for your 2025 tax return (due April 15, 2026) can help you plan smarter throughout the year. Based on the latest IRS guidance, here are the essential updates and reminders that could affect your wallet.

Do You Even Need to File?

Not everyone is required to file a tax return. For 2025, filing requirements depend on your income, age, and filing status. For example:

• Single filers under 65: Must file if gross income exceeds $15,750 (earned income) or $1,350 (unearned income)
• Married filing jointly: Thresholds are higher, but specific amounts vary based on age and other factors

Pro tip: Even if you’re not required to file, you might want to anyway—especially if you’re eligible for refundable credits like the Earned Income Tax Credit (EITC) or had taxes withheld from payments.

Income You Might Not Realize Is Taxable

The IRS considers many surprising items as taxable income:

• Sharing/gig economy earnings: Income from ride-sharing, renting your home, or freelance platforms must be reported—even if you don’t receive a Form 1099-K
• Jury duty pay: Must be reported on Schedule 1, though you can deduct amounts you gave back to your employer
• Found property: “Treasure trove” (lost/abandoned property you keep) is taxable at fair market value in the year you gain undisputed possession
• Bartering: The fair market value of goods/services received through barter must be included in income
• Illegal activities: Yes, even income from unlawful activities must be reported (though we certainly don’t recommend this path!)

Social Security Benefits: When Are They Taxable?

Many retirees are surprised to learn their Social Security benefits might be taxable. Here’s the quick test:

1. Take 50% of your Social Security benefits (box 5 of Form SSA-1099)
2. Add all your other income (including tax-exempt interest)
3. If the total exceeds:
   • $25,000 (single filers)
   • $32,000 (married filing jointly)

…then up to 85% of your benefits may be taxable. The IRS provides a worksheet in Publication 915 to calculate the exact amount.

Recordkeeping: How Long Should You Keep Tax Documents?

Don’t rush to shred those old tax files! The IRS recommends keeping records until the period of limitations expires for that tax year:

• 3 years: Standard period to claim a credit/refund or for IRS to assess additional tax
• 6 years: If you underreported gross income by more than 25%
• 7 years: If you file a claim for a loss from worthless securities or bad debt deduction
• Indefinitely: If you don’t file a return or file a fraudulent return

For property records, keep documentation until the period of limitations expires for the year you dispose of the property in a taxable transaction.

Getting Your Refund Faster

• E-file + direct deposit: Fastest method—refunds typically arrive within 21 days
• Check status online: Available 24 hours after e-filing (or 4 weeks after mailing a paper return) at IRS.gov/Refunds
• Split refunds: Use Form 8888 to divide your refund among up to three accounts

Note: If your refund is under $1, the IRS won’t issue it unless you specifically request it in writing.

Payment Options If You Owe

If you can’t pay your full tax bill by the deadline:

1. Pay as much as possible to reduce penalties and interest
2. Consider an installment agreement—but be aware you’ll still owe interest and possibly a setup fee
3. Explore alternatives first: Credit cards or personal loans might have lower costs than IRS payment plans

Remember: Even with an installment agreement approved, interest continues to accrue on unpaid balances.

Final Reminder: Identity Protection

All taxpayers are now eligible for an Identity Protection PIN (IP PIN) to prevent tax-related identity theft. Get yours at IRS.gov/IPPIN using the “Get an IP PIN” tool—this six-digit number adds an important layer of security when filing your return.

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Disclaimer: This blog post summarizes key points from IRS Publication 17 (2025) for informational purposes only. For specific tax advice related to your situation, consult a qualified tax professional or refer directly to official IRS publications and instructions.