5 Key Steps for IRS Tax Season 2025: Eligibility and Payment Schedule

The IRS tax season is one of the most important times of the year for working individuals, families, and businesses in the U.S. Whether you’re a first-time filer or an experienced taxpayer, being prepared early can save you time, money, and unnecessary stress.

The 2025 tax season brings a few changes you should be aware of, especially regarding credit eligibility, digital asset reporting, and withholding adjustments. In this article, we’ll walk you through five important steps to help you stay ahead, avoid penalties, and possibly even get a bigger refund.

Why Preparing for Tax Season Is Important

Tax season isn’t just about filling out forms—it’s a chance to maximize your refund, correct any past mistakes, and make sure you’re following IRS rules. If you wait too long or skip essential steps, you may face penalties or miss out on money you’re entitled to.

Let’s go over the five key steps that can help make your 2025 tax filing experience smoother and smarter.

1. Organize Your Tax Documents Early

Start by collecting all the important documents you’ll need. Staying organized saves time when it’s time to file and helps avoid delays in your refund.

Documents you may need:

W-2s (from employers)
1099s (for freelancers, contract workers, and investments)
K-1s (for partnerships or S-corps)
Receipts for donations, medical expenses, or home office use
Records for education, childcare, or energy credits

Pro tip: Keep a digital folder or use receipt-tracking apps to store your documents. This makes it easier to stay organized throughout the year.

2. Adjust Your Tax Withholding If Needed

If you received a big tax refund or owed money last year, it might be time to update your W-4 form or estimated tax payments.

Use the IRS Tax Withholding Estimator online to make sure the right amount is taken from your paycheck. You’ll avoid surprises and better manage your finances.

Update your withholding if you:

Got married or divorced
Had a baby or adopted a child
Started a second job or side hustle
Want to reduce or increase your refund

Example: Sarah, who recently began freelancing part-time, adjusted her withholding after using the IRS estimator. This helped her avoid a big tax bill at the end of the year.

3. Create an IRS Online Account

Setting up an IRS online account gives you direct access to:

Your tax history
Notices or messages from the IRS
The status of your refund
Ability to request an Identity Protection PIN

How to set up your IRS account:

Visit IRS.gov and click “Create an Account”
Verify your identity using an ID and personal details
Set up multi-factor authentication for added security

Example: John, a freelancer, uses his IRS account to track past payments and view old tax returns, saving him time during filing season.

4. Understand Which Tax Credits and Deductions You Can Claim

Knowing which credits and deductions apply to you can reduce how much tax you owe—or increase your refund.

Common Tax Credits:

Earned Income Tax Credit (EITC) – For low to moderate income workers
Child Tax Credit (CTC) – Up to $2,000 per child under age 17
Education Credits – Including the American Opportunity Credit (up to $2,500) and Lifetime Learning Credit (up to $2,000)

Standard vs. Itemized Deductions:

Standard deduction: Set amount based on your filing status
Itemized deduction: Claim things like mortgage interest, medical expenses, or state/local taxes

Example: Maria, a new homeowner, saved money by itemizing deductions, including her mortgage interest and property tax.