PROPONENT FEDERAL CREDIT UNION OFFERS A TAX FILING CHECKLIST TO OPTIMIZE TAX RETURNS (PART 1)

Nutley, NJ [March 4, 2025] — Proponent Federal Credit Union, a longstanding financial resource for Nutley residents, has put together a tax filing checklist with tips and reminders to help filers achieve the best possible returns. Here are our suggestions.

• Explore All Available Tax Credits: A credit is an amount you subtract from the tax you owe. Credits are available for low-income earners, parents, students, retirement savings contributions, clean energy investments, and health insurance purchases through the marketplace. Learn more about credits you can take at the IRS website.
• Maximize Deductions: A deduction is an amount you subtract from your income. By lowering your income, deductions lower your tax payment.  Begin by determining if a standard or itemized deduction will save you the most money on your return.
• The standard deduction for 2025 is $15,000 for single filers and married persons filing separately, $22,500 for a head of the household, and $30,000 for a married couple filing jointly. Some other groups may be eligible for additional deductions.
• If the amount of your itemized deduction would exceed the standard deduction, then opt for itemizing.
• Deductible Expenses for All Filers: Certain expenses, such as alimony payments, IRA contributions, HSA contributions, business use of your home and car, student loan interest, and educator expenses, may be deductible regardless of whether you itemize. Learn more about deductions you can take at the IRS website.
• Additional Deductions for Itemizers: If itemizing, you may be able to deduct other expenses including business expenses, charitable donations, mortgage interest, state and local taxes, and unreimbursed medical expenses exceeding 7.5% of your adjusted gross income.
• Self-Employment Deductions: Business owners may be able to deduct expenses such as office supplies, travel, and health insurance premiums for themselves and their families.

File Efficiently and Accurately

 Here are some reminders to make sure you don’t have delays or incur penalties when filing.

• Verify Reported Income: Ensure that your W-2s and 1099s match the income reported to the IRS to prevent audits.
• Report All Income: Include all earnings, including freelance and gig work, to avoid penalties.
• Review Your Return for Accuracy: Double-check for errors, such as incorrect Social Security numbers or math mistakes, to prevent delays or audits.
• Correctly Claim Dependents: Coordinate with others who may claim the same dependents to ensure compliance.
• File Even If Unable to Pay in Full: The IRS offers payment plans, and timely filing reduces potential penalties.
• Opt for Direct Deposit: Choosing direct deposit for refunds accelerates receipt and minimizes the risk of lost checks.
• Be Vigilant Against Tax Scams: The IRS does not initiate contact via phone or email to request payment.
• Use Tax Software or Consult a Tax Professional if Needed: Tax software is inexpensive and can save time for straightforward filings.  For complex tax situations, a certified public accountant can provide valuable guidance and potentially identify additional savings.

Implementing these strategies can help you effectively manage your tax obligations and potentially reduce your 2025 tax bill. Look for strategies to save money on your 2026 returns in Part 2, which will be released next week.

This material has been prepared for informational purposes only. Proponent does not provide tax, legal or accounting advice. We always recommend that you speak with a tax professional, as tax rules are complex, change frequently and depend on the individual taxpayer’s situation.

About Proponent Federal Credit Union

For over 50 years, Proponent Federal Credit Union has served as a trusted financial partner for Nutley and the surrounding communities, offering an empowering alternative to traditional banking. With a commitment to exceptional member value and community well-being, Proponent provides a full range of financial products, including mortgages, loans, credit cards, and savings and checking accounts. The Credit Union actively invests in local schools, businesses, and organizations, reinforcing its deep ties to Nutley. Proponent is federally insured by the National Credit Union Administration (NCUA). For more information, visit Profcu.org.

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For more information, contact:

Meryl Rader, Marketing, Proponent FCU
908-528-3826 – [email protected]