By Ashley Reich
One thing is for certain, Tax Day comes every year just like Christmas. Unfortunately, this day is not one that most look forward to each year. April 15 is right around the corner, and it is a good idea to consider gathering your documents and reading up on the latest tax changes before the filing deadline. Let’s go through some of those updates and changes to determine how to make the most out of your tax situation this year.
Tax Changes and Updates
There were quite a few changes to consider when filing your taxes in 2025 for the tax year of 2024. The first is the standard deduction. According to the IRS, the standard deduction was increased for single and married filing separately filers to $14,600, for married filing jointly to $29,200, and for head of household to $21,900. Each deduction increased between $750 to $1,500 from the previous year. The standard deduction can be useful to those who may not have many charitable contributions or other items that are eligible for itemized contributions and will reduce the amount of taxable income. Secondly, the income tax brackets increased slightly to account for inflation, which essentially is the tax rate for your specific income range and filing status.
How to Prepare
Tax Day can often provide confusion and paranoia around whether you are filing correctly and if the IRS is going to come after you for not paying enough tax. If you want to be put at ease about filing your taxes, it is highly recommended to find a trusted tax professional to sit down with you and review all your documents, especially if you have a rather complicated tax situation. There are several sites that provide a way to find a local provider in your area to assist. Ramsey Solutions recommends utilizing an endorsed local provider. The IRS provides a free program called Volunteer Income Tax Assistance (VITA) that can also be found in your local area, and there are many colleges and universities that provide free services through their on-campus law school.
When you are preparing to either sit down at your computer or meet with a tax professional, it is a good idea to get your documents in order. One article mentions bringing a few forms of identification, proof of income such as W2s or 1099s, proof of any expenses, and proof of losses. Additionally, if you made charitable contributions and had mortgage interest, student loan interest, and investment documents, you should be prepared to bring those as well.
Future Considerations
Once you file, it is prudent to review if you are scheduled to receive a refund or if you ended up owing taxes. If you ended up owing taxes, you would want to either pay the amount owed immediately or set up a payment arrangement through the IRS. If you choose a payment arrangement, there will be fees associated with setting this up and monthly interest. If you end up getting a refund, it is recommended to meet with your employer to discuss how to ensure that your withholdings are accurate – the IRS gets to keep your overage interest-free during the tax year!
In the end, Tax Day does not have to be dreaded each year. These tips are ways to consider being the most prepared you can get your taxes filed by the deadline. Now, let’s get filing!
ABOUT THE AUTHOR
Ashley Ann Reich has been with Liberty University since 2007, first working in Student Financial Services and then as Executive Director of Government Affairs before transitioning to her current role as Senior Vice President of University Compliance. During her time at LU, Ashley started the first financial literacy program, reaching thousands of students in budgeting, paying down debt, and planning for the future.
