Your Money Matters: Expert tips for navigating 2025 tax season

The IRS has begun accepting tax returns for the 2024 filing season. As taxpayers prepare to file, experts recommend gathering necessary documents and staying informed on any changes that may impact their returns.

Local certified public accountant Kaitlin Flinn gives some tips for filing your taxes.

New Tax Rule for 2024

While 2024 saw minimal tax law changes, one notable update allows individuals to withdraw up to $1,000 from 401(k) or similar retirement accounts penalty-free in emergency situations.

This provision can provide financial relief for those between jobs or facing unexpected expenses.

Essential Documents for Filing

Taxpayers should begin collecting key documents, including W-2s and various 1099 forms.

These forms may include income from self-employment, Social Security, interest, and mortgage expenses.

Brokerage statements are expected to be sent in the coming months.

Deductions and Benefits for Seniors

Social Security income may be taxable for many recipients, though Oklahoma allows taxpayers to exempt up to $10,000 in retirement income.

Medicare premiums qualify as medical expenses and can be included in itemized deductions.

Seniors who do not itemize are eligible for a higher standard deduction, which is approximately $32,000 for married couples filing jointly in 2024.

Childcare and Dependent Tax Credits

Parents may be eligible for a federal dependent care tax credit.

Expenses for daycare, in-home childcare, and summer camps for children under 13 qualify.

The credit can be up to $1,050 for one child and $2,100 for two children, though higher-income households may receive a reduced amount.

To claim the credit, taxpayers must provide the caregiver’s Social Security number or employer identification number.

Managing Side Gig Income

Individuals earning income through side jobs must carefully track earnings and separate business transactions from personal ones.

While digital payment platforms like Venmo can be used for record-keeping, maintaining a separate business account is recommended to ensure accurate reporting and avoid IRS scrutiny.

State Income Tax and Filing in Oklahoma

Despite ongoing discussions, Oklahoma has not eliminated its state income tax. The state’s tax structure is based on federal income calculations, meaning any future federal tax policy changes could impact state returns.

One key difference between federal and state tax laws in Oklahoma is the treatment of gambling losses.

While federal itemized deductions allow gambling losses to offset winnings, Oklahoma does not permit this deduction. Tax professionals can provide guidance on handling these situations.

As tax season progresses, experts encourage taxpayers to stay informed and consult professionals for complex situations such as gambling losses, business income, and deductions.

The deadline for filing federal and state tax returns is April 15, 2025.