2025 Tax Season: Important Dates, Deadlines & Figures

It’s hard to believe that tax season is here already.  In an effort to help our clients be prepared, we wanted to make sure you are informed of important dates and items to consider when preparing to file your taxes.

It is never too early to start planning for tax season. If you are in need of a tax preparer, Prestyn runs Virtus Tax Strategies and would be happy to help you. If you have any questions, please contact Prestyn at (817)717-3812 or ptillotson@virtuswealth.com.

IRS Final Ruling on Form 1099-K For Payments on Platforms Such As Venmo, PayPal, Or Etsy

Over the last few years, you may have heard rumors about a new tax law that would have triggered you to receive Form 1099-K if you received more than $600 from any third-party settlement organizations (TPSOs), such as Venmo, PayPal, Etsy, Facebook, or CashApp.

This law was originally taking effect in January 2023 when you would receive Form 1099-K reporting any business income over $600 brought in throughout 2022. Form 1099-K applies to business transactions, such as part-time work, side jobs, or selling goods. It is not intended to apply toward personal transactions. However, due to confusion and concerns regarding the implementation of this new law and lower threshold amount, the IRS has previously delayed that Form 1099-K rule change. The 2021 threshold amounts applied up until the 2023 tax year so that you should have only received Form 1099-K if you received more than 200 business transactions worth an aggregate above $20,000.

In November 2024, the IRS finalized transition relief for TPSOs reporting 2024 and 2025 calendar year transactions. All TPSOs must report transactions totaling more than $5,000 in 2024, $2,500 in 2025, and $600 for calendar years 2026 and after. If you receive a Form 1099-K reporting personal transactions, this will still need to be reported on your tax return with an adjustment so that the income is non-taxable. Business transactions and income are taxable. If you have any questions, please contact your tax professional or Prestyn in our office at (817)717-3812.

LPL Financial Tax Statement Mailing Schedule

The LPL mailing schedule for your tax statements is listed below.  In order to meet all IRS deadlines, reduce errors, and reduce the need to mail corrected versions, 1099 Consolidated statements will be mailed in phases. Timeliness and accuracy remain a priority.

Important Deadlines in Calendar Year 2025

The following deadlines are for calendar year filers. The deadlines for partnerships and corporations that follow a fiscal year calendar vary, consult your tax professional for more information.

Important Figures

The standard deductions for 2024 federal taxes filed in 2025 are reflected in the chart below. Note the additional standard deduction applies to each spouse, so if both spouses are over the age of 65 (and not legally blind) their additional standard deduction is $3,100.

The chart below reflects the 2024 federal income tax brackets for taxes due in 2025.

Important Items to Consider

Here are some important items to consider as you begin receiving your tax documents.

1. What is a QCD and how is it reported on the 1099-R tax form?

A Qualified Charitable Distribution (QCD) is a reportable, tax-free distribution of funds from an IRA that is made directly payable to a qualified charity. QCDs may be used to satisfy your required minimum distributions (RMDs) for the year, as long as certain rules are met. You should consult with a tax professional and your financial advisor before initiating a QCD to ensure that the requirements are met and the chosen charity is eligible.

The QCD is invisible on the 1099-R meaning it looks the same as any taxable distribution. Brokers do not specify which portion of an IRA distribution is a QCD since they typically do not want to be responsible for determining whether the charity was an eligible organization. It is the responsibility of the IRA owner to tell their tax professional that part of the distribution reported on a 1099-R was a QCD and should not be taxable.

A QCD can be a useful tax-savings strategy in retirement as long as taxpayers are vigilant and careful not to include the QCD in with their taxable distributions thus overpaying on their taxes. If you have any questions on QCDs or how to report them, contact our office at (817)717-3812.

2. Corrected Forms – What is a Corrected 1099 and why did I receive one?

Please be aware that you may receive a Corrected 1099 after your initial 1099 due to income reclassification.  Income reclassification refers to changes that security issuer companies (such as outside banks and institutions) make to all or part of previously reported distribution income to some other tax classification. Your annual 1099 tax statement reports are received from these outside issuer companies.  After issuers complete year-end audit and reporting processes, this information may change, which is referred to as income reclassification. This information is then applied to accounts that are impacted by the securities changes and a new 1099 statement is generated and mailed in the next correction mailing.

Similar to other major financial firms’ standard protocols and delivery, 1099 Consolidated statements are mailed in waves as information is received from various institutions. For certain security types, final tax information from the bank, institution, or other type of issuer may be received after the standard deadline, resulting in your statement not arriving on the anticipated February date. In these cases, Corrected 1099s will be mailed weekly from February 28 to October 3, 2025.

Tax statement corrections due to income reclassifications are more likely for certain investments including:

— Regulated investment companies (mutual funds)
— Unit investment trusts (UITs)
— Real-estate investment trusts (REITs)
— Widely-held fixed investment trusts (WHFITs)

Unfortunately, there’s no IRS cutoff or deadline for providing corrected 1099 forms. If you need to file an amended tax return, it’s recommended that you discuss the situation with your tax advisor prior to refiling so you can determine the best course of action based on your individual circumstances.

Note: Reclassification is an industry-wide activity. All financial industry firms receive reclassified data from the issuers.

3. Filing an Extension – Do I need to file an extension?

It’s always a good idea for you to maintain an open line of communication with us and your tax advisor throughout the year in order to ensure appropriate tax strategies. This dialogue can help you decide if filing an extension is the best course of action. There are many reasons why filing an extension might make sense. For example, the volume of data or complexity of certain transactions inside or outside your accounts may require additional time to address.  Also, if you are expecting to receive your 1099 in the fourth mailing wave in March, it may be reasonable to consider filing an extension to allow sufficient time for your tax advisor to accurately complete your tax return forms.

We hope this information is helpful as you prepare for completing your taxes.   If you have any questions, please reach out to Prestyn in our office at (817)717-3812.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.