5 Signs You Are NOT Prepared for 2025 Tax Season
Written by
Emily Fowler
Edited by
Zuri Anderson
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As tax season gets underway it can be easy to think there’s still plenty of time, particularly if previous tax years have been pretty straightforward.
The problem is that feeling prepared and actually being prepared aren’t always the same thing. A lot of people assume they’re in good shape because they do this every year, only to realize later that they missed something important.
Here are some of the signs, according to experts, that you’re not as prepared as you think.
1. You Haven’t Checked What Might Have Changed
Many taxpayers will “assume this year will operate like any other,” according to Laurie Smith, tax partner at Wiss. With the IRS still rolling out major tax law changes and dealing with staffing shortages and slower processing times, thing won’t necessarily move as quickly as usual.
According to Smith, it’s important for taxpayers to take a moment to see how new rules affect things like withholding, deductions or credits. Checking ahead of time to see what’s different this year can help avoid delays or unpleasant surprises.
2. You Haven’t Gathered Key Tax Forms
Mark Kanakaris, founding president of Kanakaris & Associates, noted that not everyone knows what their accountant needs from them, or they assume incorrectly. Bringing in a final pay stub instead of the official W-2, for example, which can lead to incorrect returns.
“Take a look at the forms you submitted the previous year and make sure you have the same ones this time around,” Kanakaris said. “This helps to ensure you don’t overlook anything.”
3. You Made a Big Money Move and Haven’t Thought About Taxes Yet
It’s important to understand how major changes can affect taxes, things like selling a home, withdrawing retirement funds, switching jobs or cashing stock options. Transactions like these often come with specific tax forms or reporting requirements.
Life events such as marriage, having a child or starting a new business can also change deductions and withholding. Ignoring these changes until filing time can lead to delays or even penalties.
4. You Don’t Have Your Paperwork in Order
Receipts in emails, statements on the laptop, paper forms in drawers — having to hunt down various documents takes time and can add an extra layer of stress to tax season. Smith recommended creating a simple digital folder for all documents as they arrive, a small step to take that can save hours later on.
5. You Keep Putting Off Tax Prep
It might seem like there’s plenty of time to get things done, but procrastination is a classic warning sign. Waiting too close to the deadline can lead to stress, especially if it becomes clear there’s an issue that needs to be dealt with.
“By staying proactive and organized, taxpayers can avoid the stress and frustration that comes with last-minute scrambling,” said Kanakaris.
Taking small steps now, whether that’s checking everything’s in order or asking necessary questions early, can reduce surprises when it comes to filing.
“In a year marked by slower response times and delayed guidance, preparation and proactivity are more important than ever,” Smith concluded.
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