(The Epoch Times)—The U.S. Internal Revenue Service (IRS) is recommending taxpayers prepare for the 2025 tax filing season by taking certain key steps to make filing easier and help safeguard their tax information.
“There are a number of things taxpayers can do to get ready as the end of 2024 nears and the start of the 2025 tax season approaches,” said a Dec. 19 statement from the agency. The latest reminder is part of the “Get Ready” series in which the IRS publishes key updates as the start of the 2025 tax season approaches.
The IRS encouraged taxpayers to sign up for an IRS Online Account. The account helps individuals view key information from their recent returns, make and cancel payments, get electronic notices from the agency, set up payment plans, and sign forms like powers of attorney, among other things.
Besides the account, the IRS recommended getting an Identity Protection Personal Identification Number, or IP PIN. “An IP PIN is a six-digit number that prevents someone else from filing a federal tax return using an individual’s Social Security number or Individual Taxpayer Identification Number.”
“It’s a vital tool for ensuring the safety of taxpayers’ personal and financial information,” the agency said.
For the 2025 filing season, the IRS has made an update regarding dependents on tax forms.
Taxpayers claim dependents during filing returns to receive certain deductions and credits like the Child Tax Credit, Earned Income Tax Credit, medical expense deduction, and education credits.
Sometimes, multiple people claim the same individuals as dependents on tax forms, like for instance, former spouses.
The IRS processes tax returns in the order they receive. As such, if the agency had already processed a return with certain dependents, another return seeking to claim the same individuals gets rejected.
However, starting from the 2025 filing season, returns claiming same dependents shall be accepted by the agency, provided the taxpayer includes a valid IP PIN.
The IRS says the new update “will reduce the time for the agency to receive the tax return and accelerate the issuance of tax refunds for those with duplicate dependent returns.”
“The best way to sign up for an IP PIN is through the IRS Online Account,” the agency said. However, “if an individual is unable to create an Online Account, alternative methods are available, such as in-person authentication at a Taxpayer Assistance Center.”
The IRS also highlighted the upcoming estimated tax payment due date.
“Taxpayers with non-wage income—such as unemployment benefits, self-employment income, annuity payments or earnings from digital assets—may need to make estimated or additional tax payments,” said the agency.
The deadline to make these payments for the September–December quarter of 2024 is Jan. 15.
1099-K Reporting, Digital Assets
Taxpayers who sold goods or services and collected over $5,000 in receipts via payment apps or online marketplaces in 2024 “should expect to receive a Form 1099-K,” the IRS said.
The form details payments received by taxpayers engaged in such transactions. Taxpayers must now account for these incomes when filing returns.
When previously the form was issued if the total transaction value in a year exceeded $20,000, currently the threshold is set at $5,000. This reduction is part of a plan to eventually reduce the limit to $600.
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The IRS clarified that “taxpayers must report all income on their tax return unless it’s excluded by law, whether they receive a Form 1099-K or not.”
“The law doesn’t allow taxpayers to avoid taxes on income earned just because they didn’t get a form reporting the payments received.”
Form 1099-K income threshold reduction has come under criticism from lawmakers.
Rep. Carol Miller (R-W.Va.) introduced the “Saving Gig Economy Taxpayers Act” which seeks to revert it back to $20,000. She called the reduction “a tax hike on Americans and gig workers who use online payment platforms.”
Meanwhile, the IRS also reminded taxpayers to report all income related to digital assets like cryptocurrencies when filing the 2024 returns.
“If a taxpayer had digital asset transactions last year, they should be sure to keep records that prove their purchase, receipt, sale, exchange or any other disposition of the digital assets,” the IRS said. This includes the fair market value of such assets measured in U.S. dollars.
The IRS received around $5.1 trillion in tax revenues in the latest fiscal year 2024, roughly $400 billion more than in the previous year.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
