Get Ready for Tax Season

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Note: All tax deadlines contained in this article are set forth by the IRS. In the event of any changes to the IRS tax filing deadlines, we’ll update the below information as soon as possible. 

Whether you’re a first-time filer or an old hand, tax season can feel stressful when you’re trying to stay on top of the forms and due dates. That’s why we’ve put together this guide to help make the tax preparation process a little less intimidating, especially if you’re taking the DIY route on your personal return this year. If you’re getting an assist from a tax professional, you should be in good hands.

So what’s in this guide?

Scintillating topics like the federal income tax brackets, tax deductions versus credits, audits and more. Don’t worry, we explain everything in plain English to help you get a better understanding of your taxes.

What we’ll cover

  • Important federal tax dates to know in 2025
  • A refresher on tax basics: federal income tax brackets, tax deductions, and credits
  • Preparing your federal tax return
  • Getting a tax refund
  • Where is my tax refund?
  • Keeping tax records
  • Amending a federal tax return
  • IRS audits

When is tax season? Important tax dates to know in 2025

Below are some key federal tax dates to keep in mind for 2025. We put these deadlines up top so that you can plan accordingly and avoid any surprises. Starting your taxes early can save you from the stress of having to scramble at the last minute and the risk of having to pay penalties for missing deadlines.

January 15, 2025: 

Fourth installment of 2024 estimated tax payment due.

Estimated tax payments for the 2025 tax year are typically divided into four payment periods – see "When to Pay Estimated Tax" on IRS.gov or Form 1040-ES for deadlines. 

Note: Generally, estimated tax payments are required for individuals who do not pay income taxes for the year through withholding — for example, those who are self-employed or earn income that isn’t from an employer (e.g., investments, alimony, etc.). Consult the IRS for more details on who has to pay estimated taxes.

April 15, 2025:

Tax Day

  • 2024 individual tax returns due.
  • 2024 individual tax return extension forms due.
  • 2024 individual taxes due.
  • First installment of 2025 estimated tax payment due.
  • This is also the last day you can make 2024 IRA contributions.

June 16, 2025:

Second installment of 2025 estimated tax payment due.

September 15, 2025:

Third installment of 2025 estimated tax payment due.

October 15, 2025:

2024 individual tax returns are due for those who filed an extension.

For more due dates for other specific forms, payments and requirements, see IRS Publication 509 (General Tax Calendar). Keep in mind that tax deadlines are always subject to change, and the IRS is the official source for the most up-to-date information.

A refresher on tax basics

During tax season, you’ll likely hear terms like “tax brackets,” “deductions”, and “credits.” And it’s because all three affect your tax liability (the amount of taxes you owe to the federal government in a given tax year). 

Federal income tax brackets

Your tax bracket, also known as your “marginal tax rate,” is based on your income and filing status (e.g., single, married filing jointly, etc.). It helps to determine the amount of taxes you owe each year.

There are seven federal tax brackets or rates, 10%, 12%, 22%, 24%, 32%, 35%, 37%. The amount of your tax bill is calculated, in part, by applying these rates to your annual taxable income.

US federal tax rates are progressive. That means the higher your taxable income, the higher your tax rates will be. To figure out which bracket you’re in, consult the IRS federal income tax table.

Good to know: The IRS typically adjusts the federal tax brackets each year for inflation. See the 2024 tax brackets here and the 2025 tax brackets here.

For example, a single filer with a taxable income of $32,000 in 2024 is in the 12% bracket (see IRS 2024 tax brackets).

But just because a taxpayer falls into the 12% bracket doesn’t mean that their entire taxable income is taxed at 12%. This is a common misunderstanding. Many people don’t realize that different portions of your taxable income are taxed at different rates based on the federal tax bracket table.

So sticking with the example of a single filer with $32,000 in taxable income: For the 2024 tax year, the first $11,600 of that taxable income would be taxed at 10%. The remaining $20,400 ($32,000 - $11,600) would be taxed at 12%.

Note: The calculation above is for illustrative purposes only.

Deductions vs. credits

Now that you understand how taxable income can affect your tax rates, you might be wondering if there are ways to lower your taxable income and your overall tax bill.

This is where tax deductions and credits come into play. Since they could both help reduce the amount of taxes you pay, it can be easy to mix up the two. But a deduction and credit work differently to lower your tax bill.

A tax deduction could lower your overall tax bill by reducing your taxable income. You may already be familiar with the standard deduction. That’s because when you’re doing your personal taxes, you need to decide between taking the standard deduction or itemizing your deductions.

Other common deductions include the charitable contribution deduction, IRA contribution deduction, and mortgage interest deduction.

A tax credit, on the other hand, directly lowers your tax bill, dollar-for-dollar. So if you’re eligible to claim a $500 credit on your tax return and you owe $1,500 in taxes, that credit could reduce your tax bill to $1,000 ($1,500 - $500).

Bear in mind that the full list of available deductions and credits is long. And their amounts vary across the board. It’s unlikely that you’re going to be eligible for every deduction and credit — they typically come with specific qualification rules.

Bottom line: It’s a good idea to confirm eligibility details with the IRS or a tax professional.

Learn more: What Is the Standard Deduction? and Tax Deductions vs. Tax Credits

Preparing your federal tax return

With some of the most important tax terms and concepts nailed down, let’s talk about the basics of preparing a federal tax return.

If your taxes are complex, you may want to budget a little extra time to get your forms and documents together. You may also want to consider hiring a professional tax preparer to help with your return.

Regardless of your situation, tax preparation generally involves four key steps:

  1. Gather your tax documents and financial statements.
  2. Complete your tax forms.
  3. Assemble and file your tax return.
  4. Receive your refund (if you’re eligible).

For more information, see the IRS’s “How to file your taxes” webpage.

Getting a tax refund

If you’re getting a tax refund this year, consider putting that money to work. Here are a few ideas:

  1. Maximize your contribution to your 401(k) or IRA.
  2. Open a CD account and put a CD strategy in play.
  3. Open a high-yield savings account.
  4. Invest your refund.
  5. Pay down your debt.

Where’s my tax refund?

The IRS usually issues refunds in less than 21 days. But remember: The refund process could take longer for a number of reasons — for instance, if the return was incomplete or contained significant errors.

If you’re looking for a status update, you can use the IRS refund tracker. To use the tool, you need your Social Security number (or individual taxpayer identification number), filing status, and exact refund amount.

Keeping tax records

While you’re waiting for your refund, it’s a good time to reorganize the tax documents and forms you’ve used for the tax season. No matter what kind of filing or organization method you use, the goal is to be able to find the documents you need quickly and easily. This is in case you ever need to:

  • Respond to IRS questions or an audit.
  • Amend a tax return.
  • Prepare for next year’s return.
  • Provide tax information for certain applications (e.g., home loan, financial aid, etc.).

Another important thing to keep in mind is to store your records in a safe and secure place.

Learn more: Done with Taxes? What to Keep for Your Records

Amending a federal tax return

As you’re putting your tax documents away, you might realize you made a mistake on your return. Don’t panic. US tax laws are complicated, so mistakes can happen.

Generally speaking, if you need to go back and claim a credit or refund, you have up to three years after your original filing date or two years after the date you paid the tax (whichever is later) to submit an amended return.

First, use the IRS Interactive Tax Assistant tool to see if you even need to file an amendment. That’s because if it’s a simple math error, you probably won’t need to file an amended return. The IRS usually corrects minor mathematical and clerical errors for you.

That said, here are some common reasons why you may need to file an amended return: Changes or corrections to your filing status, income, credits, deductions, or number of dependents. If you do need to file an amended return, fill out and submit IRS Form 1040X.

IRS audits

The thought of an IRS audit can be nerve-racking. Take a deep breath. Here are some key things to know about audits.

  • Being selected for an audit doesn’t always mean there’s a problem with your return. The IRS may simply want to take a closer look at your tax return to make sure you reported everything completely and correctly.
  • Not every audit requires sitting across the table with someone from the IRS — some audits are conducted by mail.
  • You have the right to appeal IRS audit findings.

Parting thoughts

Hopefully at this point, tax talk no longer sounds like a foreign language. Our goal is to equip you with some basic tax knowledge, so that you can get your bearings and start the tax season with confidence.

Keep in mind that taxes are complicated, and tax laws are always subject to change. Your best source of information on the latest tax rules is the IRS or a certified tax professional.

This article is for informational purposes only and is not a substitute for individualized professional tax advice. Individuals should consult their own tax advisor for matters specific to their own taxes. This article was prepared by and approved by Marcus by Goldman Sachs, but does not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Goldman Sachs Bank USA and Goldman Sachs & Co. LLC are not providing any financial, economic, legal, accounting, tax or other recommendations in this article. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. Information contained in this article does not constitute the provision of investment advice by Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates. Neither Goldman Sachs Bank USA, Goldman Sachs & Co. LLC nor any of their affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements of any information contained in this document and any liability therefore is expressly disclaimed.