Your 2025 Tax Prep Guide from SharePoint Credit Union

Filing your tax return can feel overwhelming, but it doesn't have to. At SharePoint Credit Union, we care about your financial well-being, and that includes making tax season as stress-free as possible. In today’s tax prep guide, we’ll break down the filing process step-by-step, ensuring you stay organized and accurate.

Choose a Filing Method

The first step is deciding how you'll file. You have several options, including the following:

• Online Tax Software: These user-friendly platforms guide you through the process, with varying plans offering different levels of assistance. SharePoint Credit Union members can take advantage of special discounts on TurboTax and H&R Block. And if your Adjusted Gross Income is $84,000 or less, you may be eligible to file for free through an IRS Free File partner.
• Tax Professional: If your tax situation is more complex, you could hire a certified tax preparer. A professional can help ensure accuracy and potentially identify overlooked deductions, maximizing your refund.
• Paper Filing: While less common, you can still file your tax return by mail using IRS forms. However, this will likely lead to slower processing times.

Choose Your Filing Status

Your filing status significantly impacts your tax liability. The options are:

• Single: You are unmarried or legally separated from your spouse on the last day of the year and you do not qualify for another filing status.
• Married Filing Jointly: You are married, and both you and your spouse agree to combine your income and deductions.
• Married Filing Separately: You are married, but you and your spouse file individual returns. Couples may benefit from this option if it results in less tax than a joint return.
• Head of Household: You are unmarried and provide more than half the cost of maintaining a home for the year with a qualifying dependent.
• Qualifying Surviving Spouse: You may be eligible for this status for two years following the death of your spouse. This filing status allows you to benefit from joint tax return rates and the highest standard deduction amount, provided you do not itemize deductions.

Gather Documents

You’ll need a number of important documents to file your tax return, including:

• W-2s: If you worked full- or part-time during the year, your employer will send you this form detailing your income and withholdings.
• 1099s: These forms are for freelance income, interest, dividends, and other non-employment income.
• 1098s: These forms are used to report deductible expenses such as mortgage interest and student loan interest.
• Receipts: These help you track deductible expenses, such as charitable donations or medical costs.
• Records of Investments: These documents help you keep track of your capital gains and losses from the year.
• Social Security Numbers: You’ll need these for yourself and any dependents.

Calculate Overall Liability and File Your Return

Next, it’s time to determine your tax liability, or the total amount of money that you owe in taxes.

• Deductions: These reduce your taxable income. You can select the standard deduction offered by the IRS or itemized deductions for expenses like mortgage interest and charitable contributions.
• Credits: These directly reduce your tax liability. Common examples include the Child Tax Credit, Earned Income Tax Credit, and education credits.
• Overall Liability: Subtract your total tax deductions and credits from your taxable income to calculate your overall tax liability. You can then compare this number to the taxes you’ve already paid throughout the year through withholdings to determine if you owe taxes or are due a refund.

Once you've completed your return, it's time to file! Follow the instructions from your online tax software or tax professional. Those filing by themselves can also do so online or through the mail.

After You File

After filing, there are a few steps you can take to stay updated and prepare for next year.

• Keep Records: Maintain copies of your tax return and supporting documents for at least three years. These will help you prepare future tax returns and make adjustments in case of an error.
• Track Your Refund: If you're expecting a refund, use the IRS "Where's My Refund?" tool to monitor its status.
• Adjust Withholdings: If you owed taxes, consider adjusting your withholdings to avoid a similar situation next year.

SharePoint Credit Union Is Here to Help

Tax season doesn't have to be a source of stress. By staying organized and following this tax prep guide step by step, you can file your taxes accurately and confidently. SharePoint Credit Union is committed to supporting your financial well-being. If you have any questions or require financial guidance, don't hesitate to reach out. We're here to help you achieve your financial goals.