May 2025 Tax Tips

May's tax tips can alleviate the need for a tax mayday call.

The month of May is supposed to be merry, but for some taxpayers it's a month of stress and distress. They didn't meet the April 15 tax filing deadline.

At least they got an extension, and paid any tax they owed when they filed Form 4868. But now they must work on that Form 1040.

Others didn't have to ask for more time. Their later Tax Day was granted by the Internal Revenue Service due to a major disaster.

For many individual and business filers in major disaster areas, that's months down the tax road. Except for filers in eight states; their disaster-delayed due date is today, May 1, as noted in tip #1!

But for those who have a bit longer to file 2024 taxes, take a breath. I understand your desire to be done with the task as soon as you can. That's why the May Tax Tips, at least in part, are here. And, of course, there are the January through April tips, too.

Refund time, tax planning for some who've filed: For other taxpayers, May is indeed merrier. These filers will be getting tax refunds from their 2024 return filing.

May also can be the month you take steps to ensure your 2025 tax year bill, which has been accruing since Jan. 1, is the least legally possible amount.

You'll find some advice for these tax situations, and more, on this May page. As always, the tax tips are gathered here after first being featured in the upper right corner of the ol' blog.

So that you may put them to use as early as possible this May, here goes.

May 1 is disaster-delayed Tax Day for filers in 8 states — Taxpayers across much of the United States still are dealing with the effects of major disasters. Many of them also are facing a May 1 delayed Tax Day. The new deadline applies to individual and business taxpayers in eight states. (April 27, 2025 original posting; re-run May 1, 2025)
8 ways to use your tax refund — Now that you’ve received your federal tax refund, or know it’s on its way thanks to the IRS’ refund tracking tool, the next question is what will you do with the money? Here are six ways to make the most of your tax refund. (March 24, 2025 original posting; re-run May 1, 2025)
May tax moves that could make for merrier savings — I hate to interrupt your May merry making, but you might want to take a break and check out a few tax moves to make this month. They could help you save you some tax dollars. (May 1, 2025)
Tax-saving HSA contribution limits go up in 2026 — The amounts that health savings account (HSA) owners can put into this tax-advantaged medical plan is going up next year. The increase is part of the IRS’ adjustment this week of the 2026 limits for HSAs, associated high deductible health plans (HDHPs), and the lesser-used health reimbursement arrangement (HRA). (May 2, 2025)
IRS and SBA celebrate National Small Business Week 2025 — Small businesses are major contributors to the U.S. economy. But running a successful company isn’t easy. To help smaller firms grow, the Small Business Administration, joined by the Internal Revenue Service, celebrate the efforts and offer practical business and tax tips during the SBA’s annual National Small Business Week. This year that’s May 4 through May 10. (May 3, 2025)
State tax collectors join in Cinco de Mayo toasts — May 5, a day celebrating Mexican forces' victory over the French in 1862, also is a time for toasting in the United States. Taxes play a part in both the origin of Cinco de Mayo and the adult beverages we raise in toasts today. ¡Salud! (May 5, 2025)
Proposals to ease tax burden of older taxpayers, Social Security recipients — Senior citizens are a core constituency, and the Trump administration is looking to fulfill a campaign promise in the “one big beautiful” tax bill. While that’s being worked out, some House members have offered their own solutions to ease older taxpayers’ burdens. They include an even larger standard deduction than what’s already law, and tweaks to the taxation of Social Security benefits. (May 7, 2025)
Tariff schemes and tax scams to avoid — Tax scammers push their sketchy offers year-round, which is why this National Small Business Week the Internal Revenue Service is reminding business owners to stay alert. One reason all types of scams never seem to end is that the crooks adapt. The latest example is tariff-related scams. (May 9, 2025)
Mother's Day gifts include sales taxes in most states — Mother’s Day is Sunday, May 11. Most youngsters will be giving mom a gift, even though she’s being honest when she says a hug is enough. State treasuries will get presents, too. Most of the estimated $34.1 billion to be spent on mothers nationwide this year will be on gifts and services that are subject to state and local sales taxes. (May 10, 2025)
11,000+ employees have left the IRS so far under Trump/Musk cuts — Cuts by the Trump administration, with much help from Elon Musk’s Department of Government Efficiency (DOGE), have reduced Internal Revenue Service staffing by 11 percent nationwide. That’s more than 11,000 fewer jobs at the tax agency since the start of 2025, with the tax agency’s auditors taking the hardest hit. (May 12, 2025)
Students should study up on these two education tax credits — School is or soon will be over for high school seniors. Here’s some tax homework for graduates who are heading to college. There are two federal tax credits, the American Opportunity and Lifetime Learning tax credits, that could help cover some costs. The one with the lifetime moniker also is available beyond the first four years of university studies. (May 14, 2025)
As an American, Pope Leo XIV also must answer to IRS — The new pope is an American, specifically one living and working abroad. The tax consensus is that Pope Leo XIV, like other U.S. expatriates, is subject to the Internal Revenue Code’s expatriate tax collection statutes. But there are some other considerations, discussed in this weekend’s Saturday Shout Out articles. (May 17, 2025)
States, cities that would benefit from SALT changes — Complaints by some Republicans about deficit spending and state and local taxes (SALT) are causing that party’s leaders problems in getting the White House’s one big beautiful bill through the House. The move to increase the federal SALT tax deduction is being pushed by members whose constituents live in areas with high home prices. A new study looks at the 5 states and 10 cities where homeowners would benefit the most from a SALT cap increase. (May 18, 2025)
MAGA account for newborns, young children in one big beautiful bill — Being a parent isn’t easy. It’s also hard to save money when you’re raising a family. The comprehensive one big beautiful bill now wending its way through Congress offers some help with a new tax-favored savings account for newborns and young children. (May 19, 2025)
Tax changes in GOP’s House-passed One Big Beautiful Bill — While most Americans slept, House Republicans managed to muscle their One Big Beautiful Bill (OBBB) through the almost-full chamber. The consolidated budget reconciliation measure to advance Donald J. Trump’s tax, immigration, and more policies cleared by one vote. Here’s a look at some of the OBBB tax provisions, which now will be scrutinized by the Senate in the legislative process’ next step. (May 22, 2025)
Memorial Day misconceptions and survivors' tax benefits — The long Memorial Day weekend is the unofficial start of summer. But don’t forget the real, and somber reason for the commemoration: the military personnel who gave their lives in service to our country. Their survivors get a few tax benefits, although nothing can adequately compensate for their loss. (May 23, 2025)
Trump’s war on clean energy includes 33-year-old Energy Star program — The Trump administration’s war on clean energy policies extends to Energy Star, the popular government-private sector program that certifies energy-saving appliances. Ending Energy Star, as the White House proposes, not only could cost consumers nationwide real money, but also could end some sales tax holidays, like the one in Texas that wraps up on Memorial Day Monday. (May 24, 2025)
Hurricane season 2025 preparation tips — The U.S. 2025 hurricane season starts in less than a week. The National Oceanic and Atmospheric Administration is again calling for above average tropical activity, including three to five major hurricanes. Prepare now, before Mother Nature gets to work roiling the Atlantic Ocean and Gulf of Mexico. (May 26, 2025)
Federal financial literacy panel holding online public meeting — Maximizing your money after you make it is a challenge for everyone. It can be a disaster if you’re not financially literate. The Financial Literacy and Education Commission, or FLEC, was created 22 years ago to help increase Americans’ financial knowledge. Its next public meeting will be webcast on Thursday, May 29. (May 27, 2025)
What to do if you get letter from the IRS — Getting a letter from the Internal Revenue Service always is a bit distressing. But it doesn’t have to be a major disaster. Many times, the IRS missives are simply to ask a question about your tax return or let you know about a change the agency made to the filing. Here’s how to handle these official tax mailings. (May 28, 2025)
Problems with Trump Savings for children — Trump Savings, a new tax-favored account for children, is part of the massive One Big Beautiful Bill now awaiting Senate consideration. While most of us appreciate help in saving money, the Trump Savings plans have some issues. They duplicate some existing tax-preferred plans, have complicated rules, and will cost Uncle Sam billions. (May 29, 2025)

*****

I can't tell you how thrilled I am that one of your spring fever symptoms is wanting more tax tips. I don't have a cure for your tax enthusiasm, but I assure that as the year's remaining months arrive, their tax pages listed and linked below will start filling up with more timely tax information.

And yes, you can click on all the yet-to-come months' links. Those tax tips pages are live, in the sense that like this May page, the links will open instead of going to my 404 page.

But those tax tips pages don't have any advice yet because, well, they aren't here. Instead, you'll just find an energetic guy telling you to whoa up. When those calendar pages are flipped, the tips will be added.

Again, I appreciate your wanting more tax tips, and your patience on waiting for them to be posted.

January	July
February	August
March	September
April	October
May	November
June	December

Today's Tax Tip

What the one big tax bill could mean for you — It’s official. The One Big Beautiful Bill Act is law, signed at a White House July 4th ceremony. Taxes are a major part of the nearly 1,000-page measure. Here’s a collection of articles on what the new tax (and more) law could mean for your tax planning and ultimate Internal Revenue Service bill. (July 5, 2025)
The 2025 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. Remember, tax tasks and tips don't stop after you file your annual return!

All About Kay

OK, some about Kay

Kay Bell — Native Texan
(the blog title totally makes sense now, right?). Professional journalist. Tax geek.
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Tax Year 2025 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 27, the IRS said it expected more than 140 million individual tax returns for tax year 2024 to be filed by April 15. When the month started, the agency was around 39 million short of that number. While many taxpayers no doubt got their 1040s in by Tax Day, million every year get an extension to file. That's fine.

In fact, the Internal Revenue Service appreciates some of us spreading out our tax submissions. It gives the agency time to process the surge of returns that arrive en masse on April 15.

But enough about Uncle Sam's tax collection issues. The focus now is on all y'all who filed for extensions, giving you another six months to complete your return. Let's get started on meeting that new Oct. 15 deadline. It will be here before you know it.

The monthly tips and reminders a little further down this column can help you finish up your extended Form 1040. There also will be tax tidbits each month that make sure you meet other tax deadlines. And, of course, you'll find advice on ways to cut your 2025 tax bill.

The monthly tips and reminders a little further down this column can help you finish up your extended Form 1040. There also will be tax tidbits each month that make sure you meet other tax deadlines. And, of course, you'll find advice on ways to cut your 2025 tax bill.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

Welcome July!
🗽 USA 🎆 Birthday 🎉 Time! 🦅

This first full month of summer really knows how to get the season started: Fireworks across the country on July 4!
Or, if your neighborhood is annoyingly like mine, fireworks from July 1 through July whenever the pyrotechnics are all boomed!

Even more exciting, tax-related sparklers continue through the month. In fact, as the calendar of tax tasks below notes, they started before the wicks on any official Independence Day firecrackers were lit.

Click on the image for some fireworks safety tips and warnings from the U.S. Consumer Product Safety Commission.

I know, you're feeling like the youngster above, not quite ready yet to hear about taxes. But when you do take your hands off your ears to hear — or rather, scroll down to read — you’ll find some tax information to note and tax moves to make in July.
July 1: The majority of state individual and corporate income tax policy changes follow the calendar year and take effect each Jan. 1. But, notes the Tax Foundation, many sales and excise tax changes take effect today, July 1, which is the beginning of the fiscal year for all states except Alabama, Michigan, New York, and Texas. That’s why that notable tax changes will take effect in several states today.

July 4: Happy 249th Birthday, America!

Most of us will never be totally independent of taxes, but we can celebrate fewer tax hassles by paying attention to what we might owe and how we can reduce that amount throughout the year. As for that owed amount, if you meet most of your annual tax federal obligation via paycheck withholding, now is a good time to review that amount. If you need to adjust your withholding, the amounts will be less noticeable by being spread across 2025’s remaining six months.

July 10: If your job is as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation, I hope you get all the tips you deserve for doing your job well. Remember, though, that those tips are taxable income.

Whether you're dining at your favorite eatery or getting food, groceries and/or prepared meals, delivered to your home, if a tip isn't included on your restaurant or delivery bill, click the image above to calculate how much to tip the person who brought it to you.

If you got at least $20 in gratuities in June for your extraordinary services as a food server or hair stylist or parking valet or whatever job where tipping is common, you must report that amount by today. Use Form 4070 to let your employer know the total tips you took in last month.

July 11: Today kicks off the first of the annual summer state sales tax holidays. During these special shopping events, usually touted as back-to-school tax holidays, certain items are exempt from the states’ and usually the local sales taxes. Announced July sales tax holidays are (so far) in —
Mississippi from July 11 to 13;
Alabama from July 18 to 20;
New Mexico from July 25 to 27, and
Tennessee from July 25 to 27.

July 18: If back in April you got an extension to file your 2025 tax return, you don’t have to wait until the final Oct. 15 deadline to do so. You can get this tax task out of the way so you don’t have to think about it for the rest of the summer. You also might be able to file electronically at no cost if your adjusted gross income (AGI), regardless of your filing status, is $84,000 or less by using the official IRS.gov Free File website.

Eight software companies are part of this year’s IRS-Free File Alliance partnership option at IRS.gov. They will be available through the Oct. 15 extension deadline, but again, you don’t have to wait. And if your income is too high, you still can file for free by using Free File's Fillable Forms option.

July 24: Millions of us head to the beach to beat summer’s heat. But when the waters heat up, too, they can feed tropical systems. So far, the 2025 Atlantic (and Gulf of Mexico) hurricane season, which runs through Nov. 30, hasn’t been that bad. But federal forecasters say just wait. They once again are forecasting a more active than usual hurricane season. Before another tropical system forms, now is the time to get ready.

Uncle Sam's official forecasters at the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center say we could get 13 to 19 total named storms, which are those with winds of 39 mph or higher. Of those, six to 10 are forecast to become hurricanes, meaning winds of 74 mph or higher. Three to five of the storms this season could become major hurricanes; that’s category 3, 4 or 5, with winds of 111 mph or higher.

The countdown clock above can help you keep track of how many more days you have to worry about tracking any size or type of tropical storms. You also might want to check out the ol' blog's Storm Warnings collection of special pages with posts offer tax advice on preparing for, recovering from and helping those who sustain damages from the many ways that that weather goes wild.

July 31: Summer is a great time to make home improvements. And there’s some added urgency this year if you’re relying on tax credits to help cover the cost of energy-efficient residential upgrades. Congress has targeted green energy tax breaks in its massive One Big Beautiful Bill. Many of the tax breaks will expire sooner than originally scheduled, so get your home improvements — and other environmentally friendly moves, like buying an electric vehicle — in under the tax law change wire.

Small Business Tax Calendar: If you run your own company, you know there are myriad important filing, deposit, and record keeping dates throughout the year that your company needs to meet. You also can track key business and individual tax deadlines in IRS Pub. 509.

State Tax Help

Don't forget your state taxes!
Forty-two states and D.C. collect personal income taxes. But even if you live in of the eight states without any income levy, you still face other state (and local) taxes.

State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

Tax Forms

Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Tax Forms 2025 page.

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You also might enjoy these other tax tips from some of my tax-writing colleagues:
J.K. Lasser 2025 Taxes
Tax Savvy for Small Business 2025

Taxes, Accounting, and Bookkeeping
3-in-1 Bible 2025

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I gotta tell ya ...

AKA Disclaimer:

I am a professional journalist who has been covering tax issues since 1999. I am not a professional tax preparer.

The content on Don't Mess With Taxes is my personal interpretation and opinion based on my study and understanding of tax laws, policies, and regulations. It is provided for your private, noncommercial, educational, and informational purposes only. While I work to ensure each post's accuracy, the items are not recommendations of any specific tax action(s) you should or should not take. Similarly, mentions of commercial tax products or services are not endorsements.

In other words, my ramblings on the ol' tax blog are free advice, and you know what they say about getting what you pay for. That's why when it is time for you to file your own taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent, or other reputable, qualified tax preparer who is familiar with your individual tax circumstances.

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COVID-19 & Taxes

Coronavirus has wreaked havoc
on the 2020 and 2021 tax seasons.
These five Coronavirus (COVID-19) and Taxes pages have details:
March-July 2020
August-December 2020
January-December 2021
January-December 2022
…and so it continues into 2023
…and, alas, into 2024
It is 2025 and, yes, it's still an issue
You can find medical coronavirus resource links in the next section.

COVID-19 Resources

Need help finding a coronavirus vaccine in the United States?
Call 1-800-232-0233
or TTY 1-888-720-7489.
More information and resources at:
CDC Vaccines
CDC Booster Shots
HHS Combat COVID
USA.Gov COVID Info

July 2025

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Uncle Sam on vintage postcard.
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Tell it to the Hill

While it's easy to rail at the IRS, for the most part we can thank — or blame — Congress and the White House for our tax laws. So if you have an issue with tax legislation or want a tax bill passed, you need to let your federal legislators and the White House occupant know of your concerns. You can find out who in Washington, D.C., to contact (and how), as well as get information on your local lawmakers for matters, tax or otherwise, closer to home, at USA Gov.

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