By accessing the noted link you will be leaving our website and entering a partner site which is hosted by another party. Please be advised that you will no longer be subject to, or under the protection of, the privacy and security policies of our website. We encourage you to read and evaluate the privacy and security policies of the site which you are entering, which may be different than those of ours.
Tax Returns - Key Considerations for Working Individuals
As the tax season approaches, it’s essential for working individuals to stay informed about recent changes to ensure accurate and compliant tax returns, potentially maximizing refunds. Here are key considerations to keep in mind:
Income Reporting: Accurately reporting all income sources is foundational. This includes wages, self-employment earnings, interest, dividends, and more. Gather all relevant income documents, like W-2s and 1099s, to ensure they reflect your actual earnings for the year.
Deductions and Credits: Maximizing deductions and credits can significantly reduce your tax liability:
Filing Status: Your filing status significantly impacts your tax obligations and benefits. Options include single, married filing jointly, married filing separately, or head of household. Choose the status that best reflects your situation to maximize tax advantages.
Tax Withholding and Estimated Taxes: Review your tax withholding to ensure it aligns with your expected tax liability. If you’re self-employed or have additional income sources without tax withholding, you may need to make estimated tax payments to avoid underpayment penalties.
Retirement Contributions: Contributions to retirement accounts offer tax benefits and enhance long-term financial security. For 2025, the contribution limit for 401(k), 403(b), and most 457 plans have increased to $23,500. Catch-up contributions for ages 50-59 are $7,500. Additionally, individuals aged 60 to 63 have a higher catch-up contribution limit of $11,250.
Healthcare Coverage: Ensure you report your health insurance coverage accurately on your tax return or claim any exemptions for which you qualify. Compliance with healthcare coverage requirements remains essential to avoid potential penalties.
State and Local Taxes: Review your state and local tax obligations in addition to federal taxes. Depending on your residence and workplace, you may have income taxes, property taxes, or other liabilities that need to be accounted for in your tax return. Also, stay informed about recent tax law changes that may impact your return. For instance, the proposed Tax Relief for American Families and Workers Act includes provisions affecting both individual and corporate taxes.
Documentation and Record-Keeping: Maintain thorough records of all income, expenses, deductions, and credits claimed on your tax return. Organizing your records throughout the year can streamline the tax filing process and ensure accuracy. Before submitting your tax return, carefully review it for any errors or discrepancies. Even minor mistakes can lead to processing delays or trigger IRS inquiries. Double-check all entries and calculations to minimize the risk of errors. By considering these updated factors for the 2025 tax year, you can ensure a more accurate and beneficial tax filing experience.
Access a guide of key financial data for 2025 here.
DISCLAIMER:
Because investor situations and objectives vary this information is not intended to indicate suitability or a recommendation for any individual investor. This is for informational purposes only, does not constitute individual investment advice, and should not be relied upon as tax or legal advice. Please consult the appropriate professional regarding your individual circumstance. Product guarantees are based on the claims-paying ability of the issuing company and assume compliance with the product’s benefit rules, as applicable. There are retirement account risks that could diminish investor returns, such as, but not limited to: low interest rates, market volatility, withdrawal timing and sequence of returns risk, government policy uncertainty and increased longevity. Prospective investors should perform their own due diligence carefully and review the “Risk Factors” section of any prospectus, private placement memorandum or offering circular before considering any investment. Advisory services offered through Asset Strategy Advisors, LLC (ASA), an SEC registered investment adviser. Insurance services offered through Asset Strategy Financial Group, Inc. (ASFG). CIS, ASA and ASFG are separate companies.
Products and services made available through Asset Strategy and Concorde Investment are not insured by the FDIC or any other agency in the United States and are not deposits or obligations of, nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.
For over 30 years, the Asset Strategy network of companies has been providing financial wellness to individuals and families as well as corporate and non-profit retirement plans. The experienced team at Asset Strategy assists clients with managing the risk and responsibility of sponsoring retirement and investment programs and helping individuals achieve successful financial outcomes.
Your financial journey is more than just numbers, it’s about your dreams, your security, and your legacy. This Elder Abuse Awareness month, we’re sharing warning signs to help you stay vigilant and protect against fraud.
There's nothing like the feeling of owning your own home. At Northern Bank, we get that. We work to make homeownership possible for clients like Jose, who our first-time homebuyer specialist worked side-by-side with until they achieved their dream.
For many business owners, it’s difficult to imagine life without their business. While it’s easy to put off planning, preparing for an...
Northern Bank is a full-service bank dedicated to providing practical, common sense financial solutions to help our customers live their lives and grow their businesses. From deposit products to loans to payment and collections services, we work hands-on with our entrepreneurial customers, both locally and across the country, to provide the financial support they need to realize their personal and business goals. Founded in 1960, Northern Bank has assets of $3.22 billion with 12 locations serving communities throughout Middlesex County. Northern Bank is a Member of the FDIC, and an Equal Housing Lender.
Contact us now to learn more about how Northern Bank can help you realize your goals and dreams.