Happy New Year! And happy tax season, officially.
January usually sees taxpayers in a holding pattern, waiting for paperwork from employers and government agencies. Most of these forms are due to you by January 31, so you shouldn’t be waiting too long.
In the meantime, there are a few things you can do while you wait for your paperwork to come in that will make it easier and more efficient when it’s time to file.
Review Last Year’s Taxes
Whether you DIY or consult a pro, you’ll want to start with a review of last year’s tax return. You’ll need your 2024 AGI for your 2025 return—plus, a quick review of last year can let you know what forms to keep an eye out for.
Let’s review some of the most common ones we see at Tree City Tax.
Income Forms
Taxpayers are most familiar with Form W-2, the Wage and Tax Statement provided by your employer. It includes the wages you were paid during the tax year, as well as your tax withholding, benefits, and retirement contributions.
Non-wage income is reported on a Form 1099, and there are multiple types depending on what kind of income it is. With 1099 income, there is usually no tax withheld in advance, so you should make quarterly estimate payments to the IRS to avoid penalties at tax time.
Last year’s tax return can give you a clue about which 1099s you’re waiting on.
Bank Interest & Dividends: A 1099-DIV reports income from dividends, while a 1099-INT reports earnings from interest on your savings accounts or other interest-bearing accounts.
Debt Cancellation: If you settled any debts in 2025 with a creditor, the amount forgiven will be reported on a 1099-C and is considered taxable income.
Freelance or Gig Income: You may see one or more of the following 1099s if you’re a freelancer or gig worker, depending on how you were paid. A 1099-NEC reports non-employee compensation from contract work, and a Form 1099-K reports payments you received through a third party processor like Stripe, PayPal, Cash App, Venmo, Zelle, or other service. Finally, a 1099-MISC covers any other income that doesn’t fall into a specific category.
Government Benefits: 1099-G reports government income like unemployment benefits, tax refunds, or other funds that come from government sources
Qualified Education Programs: If you are a student and received payments from a Qualified Education Program or 529 Plan, you’ll receive a statement of those payments on a Form 1099-Q.
Retirement Distributions: Income from retirement accounts will be reported on a 1099-R, including pensions, annuities, or other retirement plans. If you received social security benefits, those will be reported on a SSA-1099.
Forms for Deductions and Credits
You may also need to wait on forms that allow you to take deductions or receive credits to help offset your tax liability. These are important to wait for—don’t rush filing your taxes only to realize later that you were entitled to a credit! (But if you do, we can always file an amended return).
Health Insurance Marketplace: If you purchased health insurance through the marketplace, you’ll receive a Form 1095-A. This form is necessary to take the premium tax credit. If you had employer-provided health coverage and did not use the marketplace at all in 2025, you won’t receive this form.
Student Loan Interest: If you paid at least $600 in interest on a federal student loan in 2025, you will receive Form 1098-E, a Student Loan Interest Statement. You can take a deduction of $2,500 or however much you paid in interest, whichever is lower.
Assess Changes in Family
If you had any changes in your family in 2025, such as a marriage, divorce, death of a spouse, adoption, or birth, you’ll have to update your taxes accordingly.
Marriage and Divorce
If your marital status has changed, your filing status has likely changed as well. Taxpayers who got married in 2025 can file jointly, which generally provides the most tax benefits.
If you divorced, you may qualify for Head of Household filing status, provided you cover more than half the costs of maintaining a home for qualifying dependents. HOH filing status provides a larger standard deduction and lower tax rates than filing single.
Death of a Spouse
If your spouse passed away in 2025, you can file jointly this year (if you did not remarry). For the following two years, you may file as a Qualifying Surviving Spouse if you meet the requirements:
- You qualified to file Married Filing Jointly with your spouse the year they died
- You did not remarry
- You have a child, stepchild, or adopted child you claim as a dependent
- You paid more than half the cost of maintaining your home
Birth or Adoption of Children
Congratulations on your new addition! If you gave birth or adopted a child in 2025, you may see some changes on your taxes depending on your income and available credits.
First, you need to be sure you have the child(ren)’s social security number (SSN), adoption tax identification number (ATIN) or individual tax identification number (ITIN) for your tax forms to claim them as dependents and qualify for credits and deductions.
The adoption tax credit allows you to claim eligible adoption expenses for international, domestic, private, and public foster care adoptions. Eligibility for the Child Tax Credit, Child and Dependent Care Credit, and Earned Income Tax Credit depend on income thresholds. See our article about tax breaks for parents to learn more.
Organize Your Business Expenses
For taxpayers who run small businesses, you’ll need to be prepared to complete a Schedule C with your tax return. Organize your income and expenses to make it easier when you meet with your tax preparer. We’ll dive into the details of small business taxes in our next article.
Let Tree City Tax File for You
At Tree City Tax, we help you navigate all of these forms, credits, deductions, and more—and we stick around all year long to answer your questions, advise on tax savings, and serve as your liaison with the IRS.
You can schedule a consultation with us or drop in if you’re in the northeast Ohio area. Our office is in downtown Kent and we’d love to meet you.