Four Important Tips to Start the 2025 Tax Season

The beginning of a new year also means the start of another tax season. And while United Way of Central Alabama (UWCA) is wrapping up volunteer training for its Free Tax Preparation program (set to begin next week), we thought it would be a good time to share some tips that might make this tax season go smoother for everyone.

Read on to make sure you’re on track to have your taxes done before April 15th, this year’s tax deadline.

1. Assemble and organize all relevant tax documents.

In the United States, most income is taxable. It’s important that, before beginning the process of filing a return, you’re prepared with all your identification and the necessary documentation of each and every stream of income you may have. For most people, that means assembling all applicable documents from the list at below.

Essential Tax Documents Checklist:

  • Social Security cards for all family members
  • Driver license or non-driver ID
  • Identity Protection PIN if you have been issued one by IRS
  • Last year’s federal and state tax returns
  • W-2 forms
  • 1099s for interest, dividends, retirement, Social Security, unemployment or self-employment
  • 1095 for health insurance coverage
  • Letters or documents from the IRS
  • Childcare receipts – name, address, tax ID# and amount paid
  • Tuition expenses and book receipts (1098T) and student-loan interest (1098E)
  • Receipts for property tax, vehicle tags, charitable gifts and medical, dental and prescription-drug expenses
  • Voided check or direct deposit

Having all this information together from the start will help avoid having to pause or delay the process later.

2. United Way’s Free Tax Prep can help people save money by identifying tax benefits.

While there are numerous federal and state programs designed to reduce tax burdens for people in different life situations, many taxpayers are not even aware of them. Purchasing a home, going to college, losing a job and many other life events often make people eligible for tax credits and other benefits.

One of the easiest ways to access these benefits is by using MyFreeTaxes.com. Provided through a partnership between United Way Worldwide and TaxSlayer, one of the top-rated tax software providers in the nation, users are guided through tax filing by answering simple questions about themselves and their income.

While filing online, users also have access to chat support and through speaking with IRS-certified tax specialists over the phone.

Some taxpayers, particularly those with more complicated income documentation, may still prefer an in-person option. To solve this, UWCA also offers free in-person tax prep through the federally funded Volunteer Income Tax Assistance (VITA) program. Any residents of Central Alabama with annual income up to $54,000 can access the program.

Though completely free of charge, VITA volunteers receive hours of training before taking an IRS certification exam, so you can be sure they’re qualified.

For more information about free tax preparation, or to set up an appointment, click here.

3. Be aware of scams.

In just the first three quarters of 2024, there were more than 18,000 reports of fraud, totaling a loss of $74 million, in Alabama alone, according to data from the Federal Trade Commission. Impersonating someone from the IRS is one of the most common financial scams in the U.S.

Stay safe this tax season! Learn how to spot and avoid common tax scams with United Way of Central Alabama’s financial stability program. Protect your finances from fraud.

The good news is that you can protect yourself by knowing what to look for. The IRS has outlined specific behaviors it will never engage in, making it easier to spot a scam.

How to Spot Tax Scams

  • No Social Media Payments: The IRS does not contact or accept payment through social media.
  • No Gift Cards: Gift cards or prepaid debit cards are not accepted forms of payment.
  • No Threats: The IRS will not threaten to involve law enforcement or immigration officials.
  • No License Confiscation: They cannot take your citizenship status, driver’s license, or business license.
  • No Robocalls: The IRS does not leave pre-recorded voicemails.
  • No Debt Resolution Ads: They will not send unsolicited mail offering tax debt resolution services.

If you suspect you’ve encountered a scam, verify the communication directly through the IRS website or contact their support line. Stay vigilant to protect your personal and financial information.

4. Know when to expect money from your return.

While the IRS typically uses regular U.S. mail as the first way to contact someone, there are a few other ways they may try to reach you. For more details on how to verify if something is really communication from the IRS, click here.

The IRS issues most refunds in fewer than 21 days, according to the agency, but that timeframe is not guaranteed. Many returns could require extra time for review due to a variety of reasons, including potential identity theft, fraud or general errors.

Additionally, it is important to note that IRS is legally required to wait until mid-February before sending out refunds for people claiming either the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC).

And within 24 hours after the IRS has accepted a return, a taxpayer can check the status on that return by using the “Where’s My Refund?” tool on the agency’s website.

Our Free Tax Prep program is one of the ways UWCA works to promote individuals’ financial stability and career development in Central Alabama. To read more about our work in that area, click here.

financial stability

fundamental to a strong, vibrant community

UWCA provides rental and utility assistance to people in crisis, as well as offering housing counseling, affordable housing options and a wide variety of job placement, training and exploration to help individuals overcome barriers to employment. Learn how we can help you build a stronger financial future.

Financial Stability & Career Development