Welcome to Tax Season 2025 with Polaris Tax & Accounting

Staying on top of deadlines is critical to avoiding penalties and interest. Here are the key dates to remember:

• January 31, 2025:
  • Deadline to issue W-2s to employees and 1099-NEC forms to contractors.
• March 15, 2025:
  • Filing deadline for S-Corporations (Form 1120-S) and Partnerships (Form 1065).
• April 15, 2025:
  • Filing deadline for Individual Tax Returns (Form 1040) and C-Corporations (Form 1120).
  • Payment deadline for all taxes owed, even if an extension is filed.
  • First-quarter estimated tax payments are due.
• June 15, 2025:
  • Second-quarter estimated tax payments are due.
• September 15, 2025:
  • Final deadline for extended S-Corporation and Partnership returns.
  • Third-quarter estimated tax payments are due.
• October 15, 2025:
  • Final deadline for extended Individual and C-Corporation returns.

Polaris Tax & Accounting provides tailored strategies to help reduce your tax burden. Here are key planning opportunities for the 2025 tax year:

1. Maximize Retirement Contributions

• 401(k): Contribute up to $23,000 ($30,000 if age 50 or older).
• Traditional/Roth IRA: Contribution limits are $7,000 ($8,000 for those 50+).
• SEP-IRAs: Self-employed individuals can contribute up to $66,000 or 25% of compensation.

2. Utilize Health Savings Accounts (HSAs)

• Contribution limits:
  • $4,150 for individuals.
  • $8,300 for families, with a $1,000 catch-up contribution for those aged 55+.
• HSAs provide tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

3. Charitable Giving

• Donor-Advised Funds (DAFs): Immediate tax deductions while distributing funds to charities over time.
• Qualified Charitable Distributions (QCDs): Donate directly from IRAs (if over 70½) to satisfy RMDs and reduce taxable income.

4. Energy-Efficient Home Improvements

Qualify for credits up to $3,200 for energy-efficient upgrades such as windows, insulation, and solar panels.

5. Business Owners

• Deduct up to $1,160,000 in equipment purchases under Section 179.
• Claim the Qualified Business Income (QBI) Deduction, allowing eligible businesses to deduct up to 20% of net income.

6. Education Savings

Contribute to 529 Plans for tax-free growth when funds are used for qualified education expenses.

7. Tax-Loss Harvesting

Offset capital gains by selling underperforming investments. Deduct up to $3,000 of losses against ordinary income annually, with unused losses carried forward.

We’ll notify you via our secure TaxDome portal when your personalized Tax Organizer is available.

Action Steps:

1. Log in to your TaxDome portal.
2. Complete your organizer and upload all necessary documents.

We use TaxDome to make your tax preparation experience secure and convenient.

Key Features:

• Document Uploads: Safely store and access your tax documents anytime.
• Real-Time Communication: Message us for quick responses.
• Mobile App Access: Manage your tax matters on the go with TaxDome’s mobile app.

Action Step: Download the app today:

• iOS: Search “TaxDome Client Portal” on the App Store.
• Android: Search “TaxDome Client Portal” on Google Play.

We adhere to the highest standards to safeguard your personal information:

• All data is encrypted and secure.
• Communications are fully compliant with IRS and FTC regulations.