Tax season is here. Whether you are a first-timer or a seasoned filer, it can feel overwhelming. Our mission is to make your financial life easier, and that includes making tax season as stress-free as possible. Throughout this blog, we will walk you through everything you need to know as we approach the deadline, no matter your filing experience or financial situation.
1. Know Your Tax Filing Status
Your tax filing status impacts your eligibility for deductions, credits, and the amount of tax you owe. Here are the five common filing statuses:
- Single: Unmarried or legally separated individuals
- Married Filing Jointly: Married couples combining income and deductions
- Married Filing Separately: Married couples who file individually
- Head of Household: Unmarried individuals supporting a dependent
- Qualifying Widow(er) with Dependent Child: Those who lost a spouse and have a dependent child
Tip: Choosing the correct status can maximize your deductions. If you are unsure, consult with a tax professional or use the IRS filing status tool.
2. Gather Essential Documents Early
Getting organized is half the battle. Below lists what you will need:
- Income Documents: W-2s, 1099s, investment income statements, and any other income sources
- Deductible Expenses: Mortgage interest statements, student loan interest, medical expenses, charitable contributions, and business expenses if self-employed
- Proof of Tax Credits: Childcare expenses, education costs (Form 1098-T), or adoption expenses
- Last Year’s Tax Return: Helpful for reference and consistency
Tip: Use a folder (physical or digital) to collect your documents as they arrive. This will save you time and stress when it is time to file.
3. Understand Tax Deductions And Credits
Deductions reduce your taxable income, while credits directly reduce your tax bill. Here are some to keep in mind:
- Standard Deduction: A flat amount that reduces taxable income
- It is $15,000 for single filers and $30,000 for married couples filing jointly, and $22,500 for heads of households (for 2025)
- Itemized Deductions: Medical expenses, mortgage interest, and charitable donations
- Choose this if it exceeds your standard deduction
- Tax Credits:
- Child Tax Credit: Up to $2,000 per qualifying child
- Education Credits: American Opportunity Credit and Lifetime Learning Credit
- Earned Income Tax Credit (EITC): For low-to-moderate-income earners
Tip: Review changes in tax law each year, as deduction limits and credit eligibility may change.
Learn More: Itemized Deductions: What They Are, How to Claim - NerdWallet
4. Choose How You Will File Your Taxes
You have several options for filing your taxes:
- DIY Tax Software: Ideal for simple returns. Popular choices include TurboTax, H&R Block, and TaxAct
- Hire A Tax Professional: If you own a business, have complex investments, or want personalized advice
- Free File Program: If your adjusted gross income is below a certain limit, you may qualify for free filing on the IRS website
Tip: For self-employed individuals, consider working with an accountant to navigate business deductions and quarterly payments.
5. Decide How You Want To Receive Your Refund
If you are expecting a refund, you can receive it by:
- Direct Deposit: The fastest and most secure method
- Paper Check: Takes longer and may be delayed by mail processing
- Prepaid Debit Card: Some tax software options offer this as an alternative
Tip: Have your routing and account number ready if you choose direct deposit. At Sun Canyon, we are happy to help you find the right account for your needs.
6. Watch Out For Tax Scams And Fraud
Unfortunately, tax season attracts scammers. Be cautious of:
- Phishing Emails: The IRS will never contact you via email asking for personal information
- Phone Scams: Scammers may impersonate the IRS, threatening legal action. Remember, the IRS always contacts you by mail first
- Identity Theft: File early to prevent scammers from using your information
Tip: Set up alerts with your accounts for added security. We are committed to keeping your finances safe.
7. Important Deadlines To Remember
Each year, be familiar with these essential dates:
- January 31: Employers must send out W-2s and 1099s
- April 15: Tax Day! This is the deadline to file your tax return or request an extension
- October 15: Extended deadline for filing (if requested by April 15)
Tip: If you need more time, file for an extension, but remember that any taxes owed are still due by April 15.
8. How Sun Canyon Bank Can Help You This Tax Season
At Sun Canyon Bank, we are more than just a bank—we are your financial partner. Here is how we can help:
- Direct Deposit Options: Get your refund faster by setting up direct deposit into your checking or savings account.
Contact your local Sun Canyon branch today or stop by a branch near you.
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Make Tax Season Less Stressful With Sun Canyon Bank
Tax season does not have to be overwhelming. With the right preparation, you can file with confidence and possibly maximize your refund. Whether you are filing for the first time or are a seasoned pro, Sun Canyon Bank is here to support you every step of the way.
Disclaimer
This article is for informational purposes only and should not be considered tax advice. Consult a tax professional or the IRS for specific guidance on your individual tax situation. Sun Canyon Bank is not responsible for any errors or omissions in this article.
Career + Retirement Life + Family
March 5, 2025 by Sun Canyon Bank
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