While it seems hard to believe, we are but six weeks away from the income tax filing deadline for individuals. Below are some simple steps you can take now to make sure you are ready for filing season.

Electronic Banking

The President signed an executive order in March 2025 (“Modernizing Payments to and from America’s Bank Account”) stating that paper refund checks would no longer be issued. However, what was not stressed in that announcement, as soon as practicable, payments to the federal government will need to be made electronically. There are to be few exceptions to the requirement that payments to and from the federal government are to be made electronically. Now is the time to make sure that you are ready for electronic banking, especially if you are anticipating a refund.

Social Security Numbers and Tax Law Changes

There are new tax credits and deductions available for the 2025 year. See: https://magdaabdogomezlaw.com/new-tax-law-provisions/ Determine whether you qualify for any of these credits and deductions. If so, gather the paperwork necessary to claim the credits/deductions.It is important to note that in order to be eligible for some of the new credits/deductions the taxpayer and spouse, if filing jointly, must have valid social security numbers or individual taxpayer identification numbers. These numbers must have been issued prior to the due date of the return. For those individuals who use taxpayer identification numbers, if the number was not used at least once on a return filed in 2022, 2023 or 2024, the number expired on December 31, 2025 and will need to be renewed.

Online Sales and Payment Apps

All income from part time work, gig activities and sales of goods and services is taxable. A 1099-K will be issued by payment card companies regardless of the amount and by payment apps and online marketplaces when payments exceed $20,000 and more than 200 transactions occur for the year. The IRS will be looking for this income to be reported on your return. If you incurred deductible business expenses in generating the income reported by these sources, you need to gather the documentary support for these expenses so that you can deduct them on your tax return.

Cryptocurrency and Other Digital Assets

The purchase, sale or receipt of cryptocurrency, NFTs or other digital assets must be reported on your tax return. You may receive a 1099-DA for digital asset transactions and the IRS will be looking for the transactions on your tax return. The tax laws require you to maintain records regarding all the details of your digital transactions including records which document the fair market value of digital assets measured in US dollars. You will need to start gathering all documents necessary to correctly report your digital transactions.

All taxpayers, regardless of whether or not they engaged in digital asset transactions, must address the issue on their tax return by responding to the following question: “At any time during the tax year, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?” It is important that you answer the question on your return.

Gather and Organize Records

Locate all documents and information needed to prepare your return. Necessary income documents include W-2s, 1099s, 1098s, 1095-A, digital asset transaction logs and any other applicable income documents. You will also need to gather documents substantiating deductible expenses and tax credits such as expenses incurred in carrying on a trade or business, charitable contributions, rental income expenses, education and child care credits. You may also want to have available documentation substantiating itemized deductions such as medical expenses, state, local and property taxes so that you can determine whether claiming the standard deduction or itemizing deductions is better for you.  Do not file your return until you have received all necessary documents from third parties.

Taking steps today to gather your documents and to determine if any of the new tax laws apply in your situation will lead to a less stressful situation when it is time to prepare your return. Preparation and organization will also lead to a greater likelihood of an accurate return.