I’ve had years in college where I only had one job and only had one form to worry about at tax time. Those were the days. Now, I have an entire stack of 1099s, W-2s, and other miscellaneous correspondence I need to file my taxes. It seems like a new form comes in the mail everyday. I’m certainly not looking forward to the work of filing our taxes, but it can be made easier and less stressful. I’ve compiled the top resources for filing your taxes, starting with resources for those with simple returns and gradually building to more advanced tax situations.

1. The Money Guy 2025 Tax Guide

The annual Money Guy Tax Guide has all of the latest inflation-adjusted tax information from the IRS. The free download includes income tax rates, standard deductions, retirement account contribution limits, and Social Security tax information. This guide is a great starting point for those who want to refresh themselves on the tax-filing basics.

2. VITA (Volunteer Income Tax Assistance)

There’s no better free resource than the IRS’s Volunteer Income Tax Assistance (VITA) program. Qualifying taxpayers, including those making under a certain amount, persons with disabilities, and those with limited English-speaking ability, may qualify for assistance filing their taxes. If you think you may qualify, I highly encourage you to check out the IRS VITA page to find a center near you and make an appointment. It’s best to make an appointment sooner rather than later.

In college, I worked in the VITA program and helped local residents file their taxes. Not only was the experience extremely useful, it was really satisfying to help people file their taxes for free. There are many large corporations and businesses out there that want to squeeze every last dollar out of taxpayers, so it was refreshing to provide a valuable service completely free of charge with no strings attached.

3. FreeTaxUSA and IRS Free File partners

We don’t have any affiliation whatsoever with FreeTaxUSA, it’s just the best tool I’ve found to file our taxes. It is significantly cheaper than some other tax-filing services because they don’t spend nearly as much on marketing and advertising. Consequently, not as many Americans are aware of FreeTaxUSA or other software that is just as good (or better) than the big names at a fraction of the price. With FreeTaxUSA, filing your federal income tax return is always free and state returns are under $20, according to their website. FreeTaxUSA is an IRS Free File partner along with several other companies. Check out the other IRS partners for some more tax filing software options.

4. Hire a professional

Unless you are a tax professional yourself, you may get to a certain point where the time and energy required to file your own taxes simply isn’t worth it anymore. There’s also the obvious risk of making a mistake when filing your own taxes that a professional would not have made. When we say a “tax professional,” we usually mean a trusted CPA that is experienced in filing tax returns. If you aren’t sure how to find a trusted CPA, ask friends and family what their experiences are like with their tax professional and if they are taking on new clients. The cost of hiring a CPA to do your taxes might seem expensive at first, but the benefits of having an experienced professional do your taxes can be substantial.

As far as filing my taxes goes, I really miss being in college. I didn’t make much money and only had one job, so filing taxes was super quick and I always got a refund. Now that I’ve gotten older and our tax situation is more complex, I really appreciate the value of high-quality tax-filing software. We are currently in our FreeTaxUSA era, but I have no doubt that if I wasn’t a CFP® professional I would be paying someone else to do our taxes. Even so, I don’t think we will file our own taxes for much longer.

If you aren’t a financial professional but have a simple return, using FreeTaxUSA or other similar software may be a great option for filing your taxes. If you qualify for VITA assistance, I can’t recommend the program enough. If you have a more complicated tax return, it may be a good idea to reach out to a tax professional for assistance. No matter what your tax situation looks like, I wish you a low-stress tax filing season filled with nothing but joy.

Changes to retirement accounts

The Consumer Price Index (CPI) has risen 2.4% over the past 12 months, so inflation  adjustments this year aren’t as notable as they have been in recent years when inflation was higher.

Most limits are going up a little bit next year, but there’s nothing to write home about. The IRS was especially stingy with the 401(k) annual additions limits, raising it just $1,000. If you do have automatic contributions set up for your 401(k) to max out your account, make sure you adjust them ever so slightly next year.

One Money Guy metric I like to keep an eye on is the gross income someone needs in order to complete Step 6 of the FOO without contributing more than 25% of their income. Assuming you can’t make catch-up contributions and have a Roth IRA, individual HSA, and a 401(k), in 2025 you would need an income of $139,200 to complete Step 6 of the Financial Order of Operations. This essentially means if you make under that amount, contributing to a 401(k), Roth IRA, and HSA will meet the 25% investing goal. If you make over that amount, you may need to utilize a mega backdoor Roth strategy and/or contribute to a taxable brokerage account.

The income phaseouts for retirement plans are also changing again next year. If you are following the FOO, the traditional IRA phaseout isn’t as important since you would prioritize a Roth IRA, but the Roth IRA income phaseout does matter. If you are single and will make under $150,000 in 2025, you can make regular Roth IRA contributions. The same goes for couples filing jointly that will make less than $236,000 next year. If you will or may make over those amounts, you may need to consider utilizing the backdoor Roth strategy.

Standard deductions and marginal tax rates

The standard deduction, which 87% of Americans take, is increasing modestly in 2025. While the increase may not be that exciting, I would argue it is a very exciting year for those of us that love round numbers. A standard deduction of $15,000 for single filers and $30,000 for married filing jointly is just about perfect. We’ll have to enjoy it while it lasts, as it will almost certainly change to another imperfect number in 2026.

Marginal tax rates remain the same next year, but income thresholds subject to those rates increase annually for inflation. This could be good news if you are making the same amount in 2025 as you did in 2024: the amount of taxes you owe will decrease, all else being equal, even if your taxable income stays the same.

If you are thirsty for even more IRS tax changes heading into 2025, check out the IRS rundown of notable changes for tax year 2025. It is worth pointing out that we are getting ahead of ourselves – it is fun, at least for tax nerds, to look ahead at future changes, but when you file taxes next year you are going to be using tax year 2024 numbers. Fortunately for you, we have a handy Tax Guide PDF that we update annually to reference as you prepare your taxes next spring (or winter).

Changes to retirement accounts

Most retirement account limits are increasing in 2024, and many are increasing greater than the current inflation rate. 401(k) limits also apply to 403(b) plans, most 457 plans, and TSPs.

401(k) limits went up 9.8% last year, more than IRAs and HSAs, so I guess the IRS felt like they needed to pump the brakes a little bit there. IRA limits went up again, but unfortunately $7,000 is not easily divisible by 12 for everyone contributing monthly. Like last year, I will once again be the old man on the front porch yelling about IRA limits. When IRAs were created in 1974, the contribution limit was $1,500. If it had been indexed to inflation since the very beginning, the limit would be over $9,000 today. I think we could take it one step further and increase IRA limits to match 401(k) limits. Not all jobs offer 401(k)s or equivalent retirement plans, and the $7,000 limit runs out very quickly for those who are serious about saving for retirement.

For a 30-year-old who has access to an HSA, Roth IRA, and 401(k), they can contribute a total of $34,150 to tax-advantaged retirement accounts. That means a single person would need an income of $136,600 to complete step 6 of the FOO without investing more than 25% of their gross income. Having a high income is not the only way you can complete step 6. As long as you are investing 25% for retirement, and know you are saving what you should be, you can move on to step 7 of the Financial Order of Operations.

Account limits aren’t the only thing going up next year; income phaseouts will also be increasing. For most, that just means you may have a little more time before you have to worry about using the backdoor Roth strategy. For the table below, “401(k)” is used as a proxy for all qualified workplace retirement plans.

Standard deduction and marginal tax rates

Standard deductions are raised yearly, and most taxpayers take the advantage of the standard deduction. However, this year we could see a rise in Americans not taking the standard deduction. Mortgage interest is an itemized deduction, and with 30-year mortgage rates currently over 7%, more Americans may now want to see if itemizing could be better for them. It doesn’t take an enormous mortgage for itemizing to start making sense, either: someone with a $400,000 mortgage at today’s rates (7.32% for a 30-year) would pay $26,735 in interest in the first full year of owning their home. Here’s what the standard deduction is this year and what it will look like next year.

Marginal tax rates will once again remain the same next year, but income thresholds will increase for inflation. The table below shows single tax rates this year and next year.

The next table shows marginal tax rate thresholds for married couples this year and next year.

Other IRS tax changes in 2024

Changes to retirement accounts, standard deductions, and marginal tax rates are just scratching the surface of all the IRS changes this year. Check out the IRS rundown of changes going into 2024 for other notable changes and notable items that aren’t changing. One always notable change worth mentioning is the Social Security Cost of Living Adjustment, or COLA, which is 3.2% for 2024.

We update our Money Guy Tax Guide every single year as you are heading into tax season. The current version covers all the numbers you need to know as you file taxes in 2024. This PDF is 12 pages full of tables, numbers, Money Guy tips, and more. If you find it useful, please consider sharing the resource with a friend or family member.

Owning your own business can not only be an amazing wealth-building tool, but also a way to lessen your tax burden. Here’s the strategies the 1% of business owners use to avoid taxes and build wealth.

Get your free copy of the Ultimate Tax Guide Updated for 2023 and learn how to legally avoid paying more taxes than you need to.

The United States has a progressive tax system, which means that tax rates increase as your income goes up. One common misconception about the tax system is that making more money and moving to a higher tax bracket could mean you make less money than you did before, after taxes. This is not true.

Tax brackets are the same for everyone regardless of income, which means someone making $1,000,000 per year will pay the same amount of income tax on their first $10,000 of taxable income as someone making $50,000 per year pays on their first $10,000 of taxable income.

How to calculate income tax

You can use a free online resource such as our Money Guy Tax Guide to estimate how much you will owe in federal income tax. The only information you need to know to estimate your federal income tax owed is your taxable income. State income tax is a little more difficult to determine, as all states have different rates and brackets, and some states have no income tax at all.

Download your free copy of the 2025 Money Guy Tax Guide here!

Check out the video below for some recent tax updates you need to be aware of in 2026.

Note: all information provided below is for tax year 2023, where possible.

1. Student loan interest deduction

Qualified student loan interest you paid throughout the year is an above-the-line deduction – which means you don’t need to itemize to claim it. There are some stipulations, though. The income phaseout for the deduction starts at $75,000 MAGI (modified adjusted gross income) for single filers, and completely phases out at $90,000. For married filers, the phaseout ranges from $150,000 to $180,000. The deduction is only available for student loan interest, not the total amount paid towards student loans.

The parameters for qualifying student loans are fairly broad, and unlike some other government programs, private student loans qualify the same as public, government student loans.

2. Saver’s credit

Did you know you may be able to qualify for a tax credit just for saving for retirement? The saver’s credit is worth up to $1,000 for single filers or $2,000 for married filers. To be eligible, you have to be 18 or older, not a full-time student, and not a dependent on someone else’s return. The income limits do exclude many middle and high-income families. Your AGI must be under $36,500 (single) or $73,000 (married) in 2023 to qualify for the credit. Depending on your AGI, you may be able to take a credit for 10%, 20%, or 50% of the value of your retirement account contribution (limited to $1,000/single or $2,000/married).

Contributions to traditional and Roth IRAs, 401(k)s, 403(b)s, 457(b)s, and more qualify. It’s important to note that this is a credit, not a deduction, which means it reduces your tax liability dollar-for-dollar.

3. Charitable deductions

Most folks know that charitable contributions are deductible, but they don’t know how to optimize their charitable giving tax deductions. You must itemize your deductions to claim charitable contributions, which means for most Americans, it may not make sense to claim charitable contributions on their taxes. However, if you give significantly to charity each year but still take the standard deduction, it may be worth lumping your contributions into one year and itemizing that year.

Here’s what I mean: if Tom and Patti give $25,000 to a qualified charitable organization each year, it may still be better for them to take the standard married filing jointly deduction of $27,700. But if they only give $50,000 every other year – still giving the same amount over time – they could itemize and deduct those contributions, potentially up to 60% of AGI.

Giving to charitable causes doesn’t open up any secret tax loopholes where you end up making more money by giving, but for those who are naturally generous, it is certainly nice to get a little back on your taxes. Studies have shown that generosity has a positive effect on happiness. Even if you won’t ever itemize charitable contributions, giving can still have a positive impact on you and your community.

4. Child tax credit

The expanded child tax credit no longer exists, but the OG child tax credit is still around. In 2023, the credit is worth up to $2,000 per qualifying child, and up to $1,500 of that credit is refundable. Only children under 17 qualify, and you can only claim the full credit if your MAGI (modified adjusted gross income) is under $200,000/single or $400,000/married (income phaseouts start at those thresholds).

5. Child and dependent care credit

It’s easy to get the child tax credit and child and dependent care credit confused. The child and dependent care tax credit is for reimbursing parents for childcare while they work. Only parents with children 12 and under can qualify (unless your spouse or other person(s) claimed on your tax return require paid care). You and your spouse (if married) must have earned income to qualify, and you must have paid for care so you could work or look for work.

The amount of qualified expenses is $3,000 for one person or $6,000 for two or more. Depending on your income, you can claim 20% to 35% of those qualified expenses as a tax credit. The credit does not phase out for high-income earners, but the percentage of expenses they can take as a credit is reduced.

6. Mortgage interest deduction

Great news for everyone who is buying a home at interest rates over 6%: you may be able to deduct your mortgage interest paid. This is an itemized deduction, so it may not make sense to take if you don’t have other itemized deductions or if the standard deduction will end up being more beneficial. On homes purchased before December 16th, 2017, you can deduct interest on loans up to $1 million; if you purchased on or after that date, the current limit is $750,000.

If the mortgage interest deduction alone doesn’t make it worth itemizing, you may be able to combine other itemized deductions, like charitable contributions, to make it worth your while. Many homebuyers today are paying more in interest on their home loans, which may be deductible if they itemize.

There is no secret to paying less in taxes, but planning your tax year in advance can help you maximize opportunities throughout the year so you aren’t scrambling each year at tax time. For planning throughout the year, I have enjoyed using the Taxes App which helps you determine if you are on-track to pay the right amount in taxes. Nobody likes getting a surprise tax bill in April, and getting a hefty refund isn’t optimal for Financial Mutants. Check out our Money Guy Tax Guide for information on other credits, deductions, tax rates, and more.

Not everyone gets excited about annual IRS inflation adjustments, but there are some reasons to be excited for next year’s adjustments especially, as they are the largest in years. While everyone would probably rather both inflation and inflation-adjustments to be much lower, having the opportunity to invest more in your 401(k) or IRA is at least a little bit of a silver lining.

Changes to retirement accounts

The table below shows how retirement account contribution limits will change in 2023; note that 401(k) limits also apply to 403(b) plans, most 457 plans, and TSPs.

Employer-sponsored retirement plans are getting a pretty substantial boost next year, which is great news for anyone who is maximizing their 401(k) or using the mega backdoor Roth conversion strategy. 401(k) catch-up contributions went up, for those 50 or over, and IRA catch-up limits stayed the same at $1,000. IRA limits increased for the first time since 2019, although it is hard not to wish these accounts had higher limits, especially for those without retirement plans through work.

When IRAs were created in 1974, the contribution limit was just $1,500, and it was not indexed to inflation until 2001. If they had been indexed to inflation from the start, the contribution limit today would be just over $9,000. Would it be too much to ask for a one-time inflation adjustment to make up for the lost time between 1974 and 2001?

Income phaseout ranges will increase next year as well, so if you are on the brink of not being able to contribute to a Roth IRA (or needing to use the backdoor Roth strategy), you may have a little extra time. The table below shows how income phaseouts will increase next year for IRAs. (“401(k)” in the table below is used as a proxy for all workplace retirement plans.)

Standard deductions and marginal tax rates

Most Americans don’t really understand the standard deduction or what itemizing means. A recent survey found that just 17% of Americans plan to take the standard deduction as opposed to itemizing, but in reality 90% of the country ends up taking the standard deduction. The standard deduction nearly doubled with the Tax Cuts and Jobs Act of 2017, so for the majority of the country, the standard deduction is the best option. Here’s what the standard deduction looks like in 2022 and 2023.

Marginal tax rates will remain the same in 2023, but income thresholds will increase for inflation. The table below shows single tax rates in 2022 and 2023.

The next table shows marginal tax rate thresholds for married couples (note the so-called “marriage penalty” on the highest marginal tax rate of 37%).

Other changes in 2023

Retirement accounts, standard deductions, and marginal tax rates are the most exciting and notable IRS inflation adjustments, but most other tax credits and phaseouts that are indexed to inflation will also be going up in 2023. This includes the largest Social Security COLA in more than four decades, Earned Income Tax Credit, FSA limit, amount of income subject to payroll taxes, gift tax, capital gains tax phaseouts, and more.

You don’t have to worry about 2023 changes just yet, but we think it’s exciting to get a sneak peek of changes headed our way. When you file taxes next year, for tax year 2022, you’ll still be using the “old” numbers. If you haven’t already, download the 2022 Money Guy Tax Guide to reference as you begin planning for next year’s tax season. We update this resource annually, so make sure you check back after tax filing season for our complete guide to all of the 2023 tax year changes.

When do you know it’s time to hire a CPA to do your taxes? In this highlight, Brian and Bo give some insight on how to know if you should hire a professional to do your taxes or file them yourself.

Ever wonder what the highly trained professionals use to tax plan? Wonder no more! We’ve assembled the ultimate tax guide you can download and reference as you prepare your taxes this year. You can find it here.