Ask the Tax Editor: Tips for Filing Your Form 1040

Each week, in our Ask the Editor series, Joy Taylor, The Kiplinger Tax Letter editor, answers questions on topics submitted by readers. This week she's looking at four questions on preparing and filing your 2025 Form 1040. (Get a free issue of The Kiplinger Tax Letter or subscribe.)

1. Any tips for getting my refund faster?

Question: I am generally due a refund when I file my tax return. Do you have any tips on how I can get my tax refund faster?

Joy Taylor: The fastest way to get your tax refund is to file your tax return early, file it electronically, and request that the money be deposited directly into your bank account.

E-filing your tax return early can also help protect you from tax-related identity theft. Thieves who use stolen taxpayer identification numbers on fraudulent returns to seek improper refunds typically file the phony returns early in the filing season so that the IRS receives them before legitimate taxpayers file their returns. If you e-file your Form 1040 early, your return will likely arrive at the IRS before a fake return does.

2. Will my refund be delayed if I claim the earned income credit?

Question: For the past couple of years, I claimed the earned income tax credit on my Form 1040, and my refund was delayed. Will this happen again this year?

Joy Taylor: Yes. Filers claiming the earned income tax credit and taxpayers claiming the refundable child tax credit will have to wait, probably until at least late February, before their refunds are directly deposited into their bank accounts. The wait time will be longer for paper-filed returns sent by snail mail.

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3. Do you expect a smooth tax filing season?

Question: I have read that many tax professionals are expecting a rough tax filing season this year. What are your thoughts on this issue?

Joy Taylor: The IRS says it will begin accepting tax returns on January 26. Some tax professionals thought that the filing season would be delayed because of all the work the IRS had to do to implement the tax changes in the "One Big Beautiful Bill" (the OBBB), many of which apply to 2025 federal tax returns. But instead, IRS employees worked diligently to open the filing season pretty much on time.

We generally expect a smooth filing season. But that doesn't mean there won't be some rough patches ahead, primarily caused by the IRS's diminished workforce. The IRS has lost 25% of its workers over the last 12 months. The departures represent all experience levels and functions within the IRS, including taxpayer service, collection, IT support and enforcement.

Taxpayers and tax preparers will have questions on how the OBBB changes apply in a wide range of scenarios, and they're not likely to get much assistance from the IRS. Yes, there will be people answering the phones at the agency, after a long wait. But getting answers to substantive tax questions is a bit of a pipe dream.

Taxpayers who file amended returns for prior years will likely be waiting a long time before the IRS processes their filings. That's because IRS employees will be laser-focused on processing 2025 tax returns.

Also, look for IRS responses and actions on taxpayer correspondence to be slower than normal. For example, if you're replying to an IRS automated letter or other IRS inquiry, it will probably take a long while before you hear back from anyone at the IRS. We expect the IRS will reassign some employees to answer the phone lines or assist with other filing season tasks. These workers' other duties will be put on hold.

4. Will tax refunds be bigger?

Question: I have heard in the news that many people expect tax refunds to be larger this year than in past years. What is the reason for this?

Joy Taylor: Experts are saying that this year's tax refunds will be bigger than in years past. You can thank the OBBB for this. Many of the new tax breaks for individuals in the OBBB begin in 2025, more specifically on the 2025 returns that taxpayers are filing this year. Here's a partial list of these tax breaks:

Higher standard deductions
Slightly higher child tax credits
The $6,000 write-off for filers age 65 or older ($12,000 on joint returns if both spouses are 65 or older)
The deduction for up to $25,000 of qualified tip income
The deduction for up to $12,500 of qualified overtime compensation ($25,000 on joint returns)
The deduction for up to $10,000 of interest paid on loans to buy a new vehicle for personal use
The larger $40,000 cap on deducting state and local taxes on Schedule A

We'll monitor the IRS's website over the filing season to see if this forecast for larger tax refunds pans out.

About Ask the Editor, Tax Edition

Subscribers of The Kiplinger Tax Letter, The Kiplinger Letter and The Kiplinger Retirement Report can ask Joy questions about tax topics. You'll find full details of how to submit questions in each publication. Subscribe to The Kiplinger Tax Letter, The Kiplinger Letter or The Kiplinger Retirement Report.

We have already received many questions from readers on topics related to tax changes in the One Big Beautiful Bill, retirement accounts and more. We will continue to answer these in future Ask the Editor roundups. So keep those questions coming!

Disclaimer

Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our editors and experts, in this Q&A series, are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not and is not intended to, constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial or tax advisor regarding any questions you may have in relation to the matters discussed in this article.