With the 2025 tax season in full motion, the Internal Revenue Service (IRS) published a guide with top tax tips for taxpayers.

The IRS reminds taxpayers they are required to file their tax return by April 15, 2025. Before filing, you should be certain you have all the required documents. It may be helpful to create an IRS Online Account. This gives you secure access to your prior tax returns and other key information. The IRS also encourages taxpayers to retain their tax documents in a digital format to facilitate tax filing.

Some taxpayers have an Individual Taxpayer Identification Number (ITIN). If an ITIN remains unused for three consecutive years and expires, the taxpayer should renew it through IRS.gov.

There are many tax changes and updates that will benefit taxpayers. The Additional Child Tax Credit (ACTC) has increased to $1,700 for each qualifying child. The IRS cannot process ACTC refunds until mid-February, but that deadline has passed, and refunds may now be issued.

The standard deductions for 2024 have increased. The deduction is $14,600 for a single person, $21,900 for a head of household or $29,200 for a married couple or a qualifying surviving spouse. The Child Tax Credit (CTC) is $2,000 for qualifying children. The credit is phased out for upper-income individuals with income over $200,000 ($400,000 with a joint return). A child must be age 17 or under on December 31, 2024 to qualify for the CTC.

The Earned Income Tax Credit (EITC) is available to taxpayers without a qualifying child if they are between age 25 and 65 as of December 31, 2024.

There is an adoption credit of $16,810 per eligible child. This phases out with a modified adjusted gross income (AGI) over $252,150.

The Clean Vehicle Credit (CVC) is allowed up to $7,500 for a qualifying new vehicle. It is reported on IRS Form 8936. The clean vehicle credit for new vehicles is phased out for incomes over $150,000 for single filers and $300,000 for a married couple. For used clean vehicles, the CVC is $4,000 and is phased out for incomes over $150,000 for joint filers and over $75,000 for single filers.

An IRA contribution may be made up until April 15, 2025. The IRA limit for 2024 is $7,000 ($8,000 for individuals age 50 or older). The Roth and traditional IRA limits are phased out for many upper-income taxpayers.

The IRS reminds taxpayers that there are several no-cost filing options for many individuals.

1. IRS Free File — The IRS Free File program offers commercial tax software at no cost to the taxpayer. It allows a free federal and, in some cases, state tax return. It is available for individuals with incomes under $84,000. You can use IRS.gov to review the Free File programs and select one of the commercial software vendors.
2. Direct File — The federal government developed the Direct File software, which is available for taxpayers in 25 states. The Direct File program options are listed on IRS.gov. It has been expanded for the 2024 tax year. Options include the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), Child and Dependent Care Credit (CDCC) and other credits. Direct File taxpayers may not itemize but must use the standard deduction. They also may include student loan interest, education expenses or health savings account (HSA) contributions.
3. MilTax — MilTax is a free program through the Department of Defense. It is available to all active-duty military individuals. The software includes specific information for military members who are deployed in combat or have housing allowances. It allows the filing of a federal tax return and up to three state tax returns.
4. VITA and TCE — The IRS supports a free tax return preparation service for qualified individuals. The Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs are available in many locations. You can use the VITA Locator Tool on IRS.gov to find the best location.