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What is an IP PIN?

What is an IP PIN?

by | Jul 11, 2025 | Tax Tips and News

An Identity Protection PIN (IP PIN) is a six-digit number issued by the IRS to safeguard your federal tax return from identity theft and fraud. It ensures that only you, or someone you authorize, can file a tax return using your Social Security Number or Individual Taxpayer Identification Number.

Why is an IP PIN Important?

Tax-related identity theft is on the rise, and fraudsters are constantly looking for ways to file false returns to claim refunds. An IP PIN acts as a lock on your tax account, blocking unauthorized returns. Without the correct IP PIN, the IRS will reject any e-filed return or delay the processing of paper returns with your SSN.

Who Should Get an IP PIN?

  • Victims of tax-related identity theft
  • Anyone who wants to proactively protect their tax return
  • Taxpayers who want extra peace of mind during tax season

How to Get an IP PIN

You can obtain an IP PIN through the IRS’s Get an IP PIN tool. The process requires identity verification, including access to your tax and financial records. Once enrolled, you will receive a new IP PIN each calendar year.

Important Things to Remember

  • Never share your IP PIN with anyone other than your trusted tax preparer.
  • Keep your IP PIN in a secure place – it is valid for one year only.
  • The IRS will never ask for your IP PIN via phone, email, or text.
  • An IP PIN is not mandatory for most taxpayers but is available for added protection.

Adding an IP PIN to your tax filing routine is a simple step that provides strong protection against fraud. If you have not already, consider applying for one today!

The post What is an IP PIN? appeared first on taxPRO Websites.

– Article provided by Tax News.

Just Married? Here’s Your Tax Checklist for a Smooth Start

Just Married? Here’s Your Tax Checklist for a Smooth Start

by | Jul 11, 2025 | Tax Tips and News

Summer wedding bells may have just finished ringing, but tax season will be here before you know it. As newlyweds, it’s important to make a few key updates now to ensure a hassle-free tax filing experience next year. Here’s a quick IRS-backed checklist to help you start married life on a financially smart note.

1. Update Your Name with the SSA

If either of you changed your name, be sure to report it to the Social Security Administration (SSA). Your name and Social Security number must match on your tax return to avoid processing delays.

2. Update Your Address

Moved in together? Let the IRS and the U.S. Postal Service know your new address. Use IRS Form 8822 to notify the IRS directly.

3. Notify Employers

Make sure your employers update your name and address on W-2s. This ensures accurate reporting of your income.

4. Check Your Withholding

Your combined income may bump you into a higher tax bracket. Use the IRS Tax Withholding Estimator to make adjustments via Form W-4. Doing this now can prevent an unexpected tax bill later.

5. Decide How to File

Most couples benefit from filing jointly, but it’s worth considering both options. Filing separately might make sense if one spouse has significant medical expenses or miscellaneous deductions.

6. Consider the Bigger Picture

Buying a home? Starting a business? Adding dependents? All of these life changes come with tax implications. It’s a good time to speak with a tax professional to make a plan tailored for your new life together.

7. Protect Your Identity

Consider signing up for an IRS Identity Protection PIN (IP PIN). This extra step helps prevent tax-related identity theft.

Getting married is a huge milestone. Make sure your taxes reflect your new status to avoid surprises and potentially save money down the road. Congrats, and may your future be as financially smooth as your honeymoon was sweet!

The post Just Married? Here’s Your Tax Checklist for a Smooth Start appeared first on taxPRO Websites.

– Article provided by Tax News.

IRS Extends Tax Deadline to January 10, 2025, Following National Day of Mourning

IRS Extends Tax Deadline to January 10, 2025, Following National Day of Mourning

by | Jan 9, 2025 | Tax Tips and News

The IRS has announced a one-day extension for taxpayers with federal tax deadlines originally set for Thursday, January 9, 2025. The new deadline is Friday, January 10, 2025.

This extension comes in response to a  Presidential Proclamation issued on December 29, 2024, declaring January 9 as a National Day of Mourning to honor James Earl Carter, Jr., the 39th President of the United States.

Here’s what the extension covers:

  • Tax Returns: Any federal tax return that would have been due on January 9, 2025.
  • Tax Payments: Federal tax payments, including income, payroll, or excise taxes, originally required by that date.
  • Tax Deposits: Federal tax deposits, including those processed through the Electronic Federal Tax Payment System (EFTPS).

The extension provides taxpayers an extra day to ensure compliance with their federal tax obligations without facing penalties.

If you have returns or payments due on January 9, take advantage of this extended deadline to file or pay by January 10, 2025.

The post IRS Extends Tax Deadline to January 10, 2025, Following National Day of Mourning appeared first on taxPRO Websites.

– Article provided by Tax News.

Reminder: Make Estimated Tax Payments by Jan. 15 to Avoid Penalties

Reminder: Make Estimated Tax Payments by Jan. 15 to Avoid Penalties

by | Jan 9, 2025 | Tax Tips and News

If you underpaid taxes in 2024, consider making a fourth-quarter estimated tax payment by Jan. 15, 2025, to avoid penalties.

The U.S. tax system requires payments throughout the year via paycheck withholdings or quarterly estimated payments. Missing a quarterly payment may lead to penalties when filing your 2025 return.

Who Needs to Pay?

  • Self-employed individuals or independent contractors.
  • Those who owed taxes last year and may owe again.
  • Households with two earners or additional income sources like dividends.
  • Taxpayers with complex financial situations or inadequate withholding.

What Income is Taxed?
Taxable income includes side jobs, gig work, unemployment benefits, digital assets (e.g., cryptocurrency), year-end bonuses, stock dividends, and capital gains.

How to Pay
Payments can be made through the IRS Online Account, Direct Pay, EFTPS, or by check to “United States Treasury.”

Making a payment now may reduce or eliminate penalties. Use tools like the IRS The Tax Withholding Estimator or Form 1040-ES to calculate your estimated payment.

Plan ahead and take steps to avoid surprises during the upcoming tax season.

The post Reminder: Make Estimated Tax Payments by Jan. 15 to Avoid Penalties appeared first on taxPRO Websites.

– Article provided by Tax News.

2025 Federal Tax Brackets Overview: Key Information You Need

2025 Federal Tax Brackets Overview: Key Information You Need

by | Jan 8, 2025 | Tax Tips and News

The IRS annually adjusts over 60 tax provisions for inflation to prevent “bracket creep,” where inflation, not income growth, pushes taxpayers into higher brackets or reduces deductions. Since 2018, the IRS has used the Chained Consumer Price Index (C-CPI) for more accurate adjustments. For tax year 2025, filed in 2026, tax parameters will rise by an average of 2.8%, ensuring fairness amid inflation.

Revenue Procedure 2024-40 PDF provides detailed information on adjustments and changes to more than 60 tax provisions that will impact taxpayers when they file their returns in 2026.

Federal Tax Rates and Brackets for 2025

The tax rates remain unchanged, but income thresholds have been adjusted for inflation to prevent “bracket creep.” Here’s how they break down for different filing statuses:

10% Tax Rate

  • Single Filers: Up to $11,925
  • Married Filing Jointly: Up to $23,850
  • Head of Household: Up to $17,000

12% Tax Rate

  • Single Filers: $11,925 to $48,475
  • Married Filing Jointly: $23,850 to $96,950
  • Head of Household: $17,000 to $64,850

22% Tax Rate

  • Single Filers: $48,476 to $103,350
  • Married Filing Jointly: $96,950 to $206,700
  • Head of Household: $64,850 to $103,350

24% Tax Rate

  • Single Filers: $103,351 to $197,300
  • Married Filing Jointly: $206,700 to $394,600
  • Head of Household: $103,350 to $197,300

32% Tax Rate:

  • Single Filers: $197,300 to $250,525
  • Married Filing Jointly: $394,600 to $501,050
  • Head of Household: $197,300 to $250,500

35% Tax Rate:

  • Single Filers: $250,525 to $626,350
  • Married Filing Jointly: $501,050 to $751,600
  • Head of Household: $250,501 to $626,350

37% Tax Rate:

  • Single Filers: Over $626,350
  • Married Filing Jointly: Over $751,600
  • Head of Household: Over $626,350

The post 2025 Federal Tax Brackets Overview: Key Information You Need appeared first on taxPRO Websites.

– Article provided by Tax News.