Make sure you've withheld enough tax

Consider adjusting your withholding if you owed taxes or received a large refund when you filed. Changing your withholding can help you avoid a tax bill or let you keep more money each payday. Credit amounts may change each year, so visit IRS.gov and use the Interactive Tax Assistant to identify whether you qualify for any tax credits that may call for a withholding adjustment. Life changes – getting married or divorced, welcoming a child, or taking on a second job - may also mean changing withholding.

Changes that may affect your tax refund

Life events, such as purchasing a home, going to college or losing a job, may make you eligible for certain tax benefits. Other circumstances, such as getting married or divorced, welcoming a child or experiencing the death of a spouse or a dependent you claim, could also affect your tax benefit eligibility and filing status. These changes could mean you qualify for tax credits like the Child Tax Credit (CTC), the Earned Income Tax Credit (EITC), the Child and Dependent Care Credit and Credit for Other Dependents(ODC).

• For 2025, the Child Tax Credit is worth up to $2,200 per qualifying child. If you have little or no federal income tax liability, you may qualify for the Additional Child Tax Credit, up to $1,700 per qualifying child depending on your income. You must have earned income of at least $2,500 to be eligible for the ACTC.

• For 2025, the EITC eligible taxpayers with no qualifying children may receive up to $649.

• If your dependent is age 17 or older at the end of 2025, they may qualify for the ODC.

Gather and organize your tax records

Organized tax records make preparing a complete and accurate tax return easier. It helps you avoid errors that lead to delays that slow your refund and may also help you find overlooked deductions or credits.

Wait to file until you have your tax records including:

• Forms W-2 from your employer(s)

• Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, pension, annuity or retirement plan distributions

• Form 1099-K, 1099-MISC, W-2 or other income statement if you worked in the gig economy

• Form 1099-INT if you were paid interest

• Other income documents and records of digital asset transactions

• Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance payments or claims Premium Tax Credits for 2025 Marketplace coverage

• IRS or other agency letters

• CP01A Notice with your new Identity Protection PIN

Taxpayers may receive a Form 1099-K

Taxpayers who received for goods or services total over $20,000 in more than 200 transactions through an online marketplace or payment app in 2025 should expect to receive a Form 1099-K in January 2025. IRS will also receive a copy of your Form 1099-K. However, they may send you a Form 1099-K with lower amounts and/or transactions.

There have been no changes to the taxability of income. All income, including proceeds from part-time work, side jobs or the sale of goods and services is taxable.  Taxpayers must report all income on their tax return unless it's excluded by law, whether they receive a Form 1099-K, a Form 1099-NEC, Form 1099-MISC, or any other information return.

It is important for taxpayers to understand why they received a Form 1099-K and how to use it along with their other records to figure and report the correct amount of income on their tax return. It is also important for taxpayers to know what to do if they received a Form 1099-K but shouldn't have. In either situation, good record-keeping is key and will help make tax filing easier.