IRS Urges Tax Filers: Create Online Account Now; Trump’s SALT Break Affects Refunds
The IRS is encouraging taxpayers to establish Individual Online Accounts for enhanced security and ease of access to their tax information. With the April 15 filing deadline for most federal tax returns in 2025 fast approaching, the IRS highlights the importance of these accounts in reducing the chances of identity theft.
Benefits of Creating an Online Account
By using the Individual Online Account, taxpayers can:
- Accelerate the refund process
- Access important tax documents securely
- Monitor the status of refunds and amended returns
- Create and manage payment plans
- Request an Identity Protection PIN to prevent fraudulent filings
- Access over 200 digital notices from the IRS
Tax expert Tom O’Saben described the account setup as challenging but worth the effort, stating that it involves some “pain for long-term gain.”
Key Tax Changes for 2025
Filers will notice new updates in the tax code, including changes to the state and local tax (SALT) deduction. This deduction cap is set to rise to $40,000 for tax year 2025, a significant increase from the $10,000 cap introduced by the 2017 Tax Cuts and Jobs Act.
However, high-income earners will see limitations. The cap begins to decrease for modified adjusted gross income (MAGI) over $500,000 and may fall to as low as $10,000 when MAGI hits $600,000. This may influence many taxpayers to consider itemizing deductions rather than opting for the standard deduction.
According to an analysis by CNBC, the increased SALT cap could potentially lead to larger refunds for those who itemize deductions, particularly those with substantial property or state income taxes. However, filers choosing the standard deduction will not benefit from this change.
Challenges and Recommendations
While the IRS advocates for self-service tools, some taxpayers still rely on private tax preparation services. The agency emphasizes centralized access to records to minimize errors that can delay refunds. However, issues can arise, particularly with identity verification.
To avoid complications, the IRS recommends setting up accounts well in advance of the filing deadline. Once established, users can manage their tax responsibilities efficiently and avoid the frustrations associated with long wait times for assistance.
As the 2026 filing season heats up, the IRS remains committed to helping taxpayers navigate these changes. By promoting the use of Individual Online Accounts and clarifying the implications of the new tax legislation, officials aim to streamline the overall tax filing experience.
For detailed tax information and updates, continue to visit Filmogaz.com as we provide ongoing coverage and expert insights.
