Tax season is fast approaching, and whether you’re an early filer or procrastinator, there’s one extra step you can take to safeguard your tax documents.
Storing your tax forms and supporting documents in a digital folder can help you file a secure and accurate return come tax time. From travel receipts and bank statements to your W-2, 1099s, or other information returns — having those records at the click of a button can simplify your tax experience.
The IRS announced that the 2025 tax season will start on Jan. 27, and expects more than 140 million individual tax returns for tax year 2024 to be filed in the months leading to April 15, the federal deadline.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
What’s more: Direct File will be available in 25 states, allowing taxpayers to file their taxes directly with the IRS for free. The common thread? It’s all digital, which the IRS encourages as it can ensure faster processing and a quick refund if you are entitled to one.
Here are some tips on how to prepare for the tax season by going digital.
Keep track of your documents
It’s just about that time of the year when you receive your W-2s from your employer, and feel the need to start organizing your tax documents. Depending on your tax situation, you may collect receipts for expenses you’d like to deduct or claim as a credit.
As reported by Kiplinger, one way to prepare before the IRS starts accepting returns is by creating a dedicated digital folder for the following documents:
- W-2 forms form employers
- 1099 forms for freelance or contract work
- Paystubs or unemployment compensation
- Receipts for deductible expenses
- Investment records or banking statements
Also consider life changes.
If you have dependents on your tax return, you’ll also need their Social Security Number. You never know if you may be eligible for family tax credits.
Having those documents stored digitally can relieve you of the headache of misplacing key documents or receipts you may want to deduct later on. It can also prevent accidental losses due to flooding or unprecendented natural disasters.
While you can still recover your tax records and other important documentation, having these documents in a digital cloud or file can ease your worries. It’s worth noting that the IRS has extended tax deadlines for taxpayers in designated areas impacted by natural disasters.
File your tax return digitally
Each year, the IRS encourages taxpayers to file their tax returns electronically. Luckily, there are multiple services that allow you to file your taxes for free directly with the IRS or through the private sector.
Why should you consider filing electronically?
- E-filing your tax return is fast, easy, and more secure than mailing a paper return and risking it getting lost in the post.
- You can also select to receive your tax refund as a direct deposit, which can result in getting a refund faster.
- You can store a completed tax return copy in a digital folder or cloud, for future use or record-keeping.
In fact, the IRS has proactively been working toward offering taxpayers digital solutions to modernize their tax filing experience. As of Jan. 27, eligible taxpayers in 25 states can file their taxes for free with IRS Direct File. The U.S. Department of Treasury estimates that as many as 30 million taxpayers could benefit from the program.
If you’re interested in filing before the start of tax season, IRS Free File is another way you can file your taxes for free. The service is only available for taxpayers with an adjusted gross income (AGI) of $84,000 or less for 2024.
Why is digitizing your tax records recommended?
Switching from paper to digital isn’t just an eco-friendly choice, but a secure way to store your important tax documents and information and prevent the risk of loss or damage.
Keeping all of your personal tax records in one place can also simplify your tax filing process, and motivate you to file digitally. The IRS highly recommends taxpayers to e-file their taxes as it speeds up processing times, and the delivery of your refund if you are entitled to one.
The IRS has been pushing to modernize its tax processing system for several years now, and at the center of it is prioritizing the digitization of required documents to file a return. With the recent loss of another $20 billion in key IRS enforcement funds, there’s no telling how it will impact processing times and the agency’s workforce capacity.
Avoiding paper filing if you can, can be worth it in the long run. With the start of IRS tax season just around the corner, going digital can be a step in the right direction.
Related Content:
- IRS Direct File Will Be Permanent, Competing With TurboTax, H&R Block
- IRS Free File Is Now Open for 2025: Are Your Taxes Eligible?
- Ready to File Taxes? What to Do Before the IRS Starts Accepting Returns
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re Big
Gift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax Deduction
Tax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
IRS Says You Made a Tax Return Mistake? A New Law Could Help You Fight BackTax Law Updated taxpayer protections change what the IRS must explain on error notices and how long you have to respond.
-
Tax Refund Alert: House GOP Predicts 'Average' $1,000 Payouts in 2026Tax Refunds Here's how the IRS tax refund outlook for 2026 is changing and what steps you can take now to prepare.
-
Are You Middle-Class? Here's the Most Tax-Friendly State for Your FamilyTax Tips We found the state with no income tax, low property tax bills and exemptions on groceries and medicine.
-
Social Security Benefits Quiz : Do You Know the IRS Tax Rules?Quiz Social Security benefits often come with confusing IRS tax rules that can trip up financially savvy retirees and near-retirees.
-
How Are I Bonds Taxed? 8 Common Situations to KnowBonds Series I U.S. savings bonds are a popular investment, but the federal income tax consequences are anything but straightforward.
-
New 2026 Tax Change Could Mean More for Your IRA and 401(k) SavingsRetirement Savings Here's how the new IRS inflation adjustments will increase the contribution limits for your 401(k) and IRA in the new year.
