The 2025 tax season is open. So, how do we file our taxes?
Preparation
The first step in preparing your taxes is to think back to everything you did in 2025.
Did you switch jobs?
Did you sell any stocks or crypto?
Did you earn interest income from a bank?
Did you have a mortgage?
Did you receive any income from selling stuff on the side?
The answers to these questions will partially determine the documents you will receive.
I personally create a new note in my iPhone’s Notes app and track anything that happens throughout the year (like opening a new brokerage account or rebalancing my portfolio), so I know exactly what forms to expect.
The most common income documents that you will receive are:
→ Form W-2 – Wages and Salaries (Your 9-5 income)
→ Form 1099-INT – Interest income (Received from a bank)
→ Form 1099-DIV – Dividend income (From brokerage account)
→ Form 1099-B – Investments sold (From brokerage)
→ Form 1099-NEC – Non-employee compensation (Contracting)
→ Form 1098 – Mortgage Interest Statement (Mortgage)
Then, we will use the information from these forms to file our taxes.
Software to file
I personally use FreeTaxUSA¹ to file my taxes, for the following reasons:
• $0 for federal return (no matter how complex, any income level, includes self-employment, rentals, investments, sale of homes, etc)
• $15.99 for a state tax return, or $0 if you don’t need one
• W-2 and 1099 import
• Filed over 82 million tax returns with the IRS
P.S. If you want, you can use my affiliate link to sign up as a way to support my content.
Filing
Once you get into FreeTaxUSA, you will see a few different tabs:
Personal, Income, Deductions/Credits, Misc, State and Final Steps.
The software will guide you and ask various questions, like:
“Do you have a W-2?”
“Do you have 1099 Forms?”
And that will help you fill out the information.
The “Income” section would have all the items that you need to enter for the money you received, like wages, interest income, business and rental income.
Something new this year, regardless of which software you use to file your own taxes, is tips and overtime:
Some employers would provide overtime information on Box 14, and some will not. If yours doesn’t, you have to calculate it on your own IF you are eligible.
Here’s a good article I posted recently if you need more details.
The “Deduction” section is pretty straightforward:
For the majority of people, the standard deduction is higher than itemized, and none of these deductions will really have an impact on your taxes, but it will for some; so always enter ALL the information you can. The software will choose between the highest of the two.
The “Miscellaneous” section will include rare items, such as 2025 estimated payments, penalties, and foreign incomes. It may not apply to most people with a W-2 job, but make sure that you enter this information if it applies to you.
FreeTaxUSA software will automatically transfer your information to the state tax return if you live in a state that requires filing. Each state has unique additions or subtractions (e.g., a 529 plan or K-1s), and the software will guide you through these questions to ensure you get all the deductions.
When you are done filing, make sure to download copies of the federal and state tax returns for your records. This will be helpful in case there are any discrepancies or future audits.
Also, keep all the receipts and forms you have. They will help you navigate an audit if that happens.
Overall, I’m using FreeTaxUSA for my fifth tax season to file my own taxes (see proof below)
I’ve found that they cover complex situations, are more transparent, and cost significantly less than competitors. And if you experience any issues, feel free to email me and I will help reach out to the necessary teams.
If you want to sign up, here’s the link.
See you next Saturday.
Disclosure:
¹ I decided to partner with FreeTaxUSA to bring awareness to their affordable & effective tax filing software. As you know, I haven’t promoted anything on The Crunch, but I genuinely believe they are the best in the business and have personally used them for 5 tax years.