U.S. / Individual & Business – Need help with your taxes? Here are 7 tips for a hassle-free income tax compliance season.

During the fiscal year October 1, 2023 September 30, 2024, the Internal Revenue Service (IRS) processed more than 266.6 million tax returns and forms, down from 271.4 million the previous fiscal year. Individual and business income tax returns and employment tax returns account for 220 million (83%) of the returns and forms filed in the fiscal year ended September 30, 2024.

Unlike in France where one governmental agency (direction générale des finances publiques, DGFiP) is charged with collecting income tax and other agencies (Mutualite sociale Agricole, MSA, l’union pour le recouvrement des cotisations de sécurité sociale, U.R.S.S.A.F.) is missioned to collect employment taxes, in the U.S. the IRS is responsible for collecting both taxes.

Do You Have To File?

For Children and Other Dependents

1. Married dependent or single dependent 64 years old or younger, not blind
   You must file if your unearned income was over $1,350
2. Single dependents age 65 or older, not blind
   You must file if your unearned income was over $3,350
3. Married dependent age 65 or older not blind
   You must file if your unearned income was over $2,950

If you’re under 65, file a return as follows

Single: your gross income exceeds $15,750

Married filing jointly: you and your spouse’s gross income exceeds $31,500

Married filing separate: your gross income exceeds $5

Head of household: your gross income exceeds $23,625

Qualifying surviving spouse: your gross income exceeds $31,500

Even if you do not otherwise have to file a return, you should file one to get a refund of any federal income tax withheld. You should also file if you are eligible for any of the following credits.

• Earned income credit.
• Additional child tax credit.
• American opportunity credit.
• Premium tax credit.
• Refundable adoption credit.
• Withholding

You may file as a Resident aliens, nonresident aliens or dual status

Although the number of self-prepared individual income tax returns has been increasing steadily, most taxpayers are still using the services of a paid tax professional to prepare or to assist with their tax return preparation.

We’re providing this guidance to assist taxpayers who use or plan on using the service of a paid tax professional to prepare their tax return with the paid tax preparer sourcing and selection and the income tax return preparation process. We’ve adapted most of the following tips and tricks for the unwary taxpayer from the IRS and the New York State tax agencies’ communication materials. We hope you find them informative.

If you are using in New York State the service of a paid tax preparer who is not a CPA, a tax attorney, or an IRS enrolled agent, he or she must:

• Give you, before beginning any discussions about tax preparation services, a copy of the New York State consumer bill of rights regarding tax preparers, and
• Let you review it and answer any questions you have.

Please note that if the paid tax preparer is in New York City, they may give you a copy of the New York City consumer bill of rights regarding tax preparers instead.

2. Do your homework

Before you decide to use a paid preparer’s service, we recommend you do some due diligence:

• Check the paid preparer’s qualifications. You should check out, for instance, the searchable directory of federal tax return preparers with credentials and select qualifications that the IRS has developed;
• Check the paid preparer’s history. Ask people in your network whether they know anyone who has used the tax professional? Were they satisfied with the service that they received?;
• Ask about the paid preparer’s service fees;
• Ask to e-file your income tax return;
• Consider whether the paid preparer will be around after April 18th, to answer questions that you might have about the preparation of your tax return months, or even years, after the tax return has been filed;
• Never sign a blank return;
• Report abusive tax preparers to the IRS and or to your state tax agency, for instance the New York State Department of taxation and finance if you are in New York or the paid preparer is in New York State.

3. Avoid “ghost” tax return preparers

The person you paid to prepare your tax return is required to have a valid preparer tax identification number (PTIN). You should be wary of a paid preparer who:

• Refuses to sign the return that they prepared for you;
• Refuses to include their PTIN on the return;
• Requires payment in cash only and does not provide a receipt;
• Invents income to qualify you for tax credits;
• Claims fictitious expenses deductions to boost the size of the refund or to reduce your tax liability;
• Directs refunds into their bank account, not your bank account;
• Promises to obtain larger income tax refunds than other preparers;
• Bases their fee on a percentage of the amount of the refund;
• Claims to have connections with the tax authorities (IRS, New York State Department of Taxation and Finance, etc.) which permitted him or her to gain special approval to use a loophole in the tax code.

4. Consider changes to the law that may benefit you or your business

Domestic research and experimental expenditures

Beginning in 2025, taxpayers are allowed to deduct domestic research or experimental expenditures. Alternatively, taxpayers may elect to charge their domestic research or experimental expenditures to a capital account and deduct them ratably over a period of not less than 60 months (beginning with the month in which the taxpayers first realize the benefits from such expenditures).

State and local tax deduction limit increased

The overall limit on the deduction for state and local income, sales, and property taxes has increased to $40,000 ($20,000 if married filing separately). The overall limit is reduced if your modified adjusted gross income is more than $500,000 ($250,000 if married filing separately) but will not be reduced below $10,000 ($5,000 if married filing separately). For more information, see the Instructions for Schedule A.

Standard deduction amount increased

For 2025, the standard deduction amount has been increased for all filers. The amounts are:

• $15,750–Single or Married filing separately.
• $31,500–Married filing jointly or Qualifying surviving spouse.
• $23,625–Head of household.

New deductions for itemizers and non-itemizers

Recent legislation provided for four new deductions that take effect beginning in 2025. If you are eligible, you can claim these deductions if you take the standard deduction or if you itemize on Schedule A. For more information on these deductions, see the instructions for Schedule 1-A. The new deductions are as follows.

No tax on tips

You may be eligible to take a deduction for qualified tips paid to you in 2025. You can’t deduct more than $25,000 of those tips. Your deduction will be limited if your modified adjusted gross income is more than $150,000 ($300,000 if married filing jointly). To be eligible, you and/or your spouse who received the tips must have a valid SSN. If you are married, you must file a joint return.

No tax on overtime

If you earned qualified overtime, you may be eligible to deduct up to $12,500 ($25,000 if married filing jointly) of your qualified overtime compensation. Your deduction will be limited if your modified adjusted gross income is more than $150,000 ($300,000 if married filing jointly). To be eligible, you and/or your spouse who received the overtime must have a valid SSN. If you are married, you must file a joint return.

No tax on car loan interest

If you paid or accrued qualified passenger vehicle loan interest on a vehicle you purchased in 2025 for personal use, you may be eligible to deduct up to $10,000 of that interest. Your deduction will be limited if your modified adjusted gross income is more than $100,000 ($200,000 if married filing jointly).

Enhanced deduction for seniors

If you were born before January 2, 1961, you may be eligible for an enhanced deduction for seniors. Your deduction will be limited if your modified adjusted gross income is more than $75,000 ($150,000 if married filing jointly). To be eligible, you and/or your spouse must have a valid SSN. If you are married, you must file a joint return. The maximum amount of the deduction is $6,000 ($12,000 if both spouses are eligible).

Changes to the child tax credit and additional child tax credit

Recent legislation made permanent the increase to the child tax credit (CTC) and additional child tax credit (ACTC) amount. For 2025, the maximum CTC has increased to $2,200 per qualifying child, of which $1,700 can be claimed for the ACTC.

In addition, beginning in 2025, to be eligible to claim the CTC or ACTC, you must have a valid SSN, which means it must be valid for employment and issued before the due date of your return (including extensions).

If you are filing a joint return, only one spouse is required to have a valid SSN in order to be eligible for the CTC and ACTC. The other spouse must have either an SSN or ITIN, and it must have been issued on or before the due date of the return (including extensions).

6. Validate your tax return

No matter who helps you with your tax return preparation, you are responsible for its validity and the accuracy of all the information on your income tax return.

The first step to help ensure you file a complete and accurate tax return and, where applicable avoid refund delays, is to gather all your year-end documents that support your income, the expenses that you can write off, or the credits that you can claim to reduce your tax liability.

If you are using a paid tax preparer service, we recommend you set up a tax meeting with them and provide your year-end tax documents by the end of February. That gives your tax preparer time to review your tax documents, to draft your tax return and to review it with you.

7. File your tax return electronically

Electronically filing a tax return reduces errors because the tax software does the math, flags common errors, and prompts the preparer for missing information. It can also help taxpayers claim valuable credits and deductions. Electronically filed tax returns are processed faster than paper filed ones.

The IRS mission is to provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.