United States: what to claim, what to file, in what order
Tax year 2025, filed in 2026. Everything on this page is specific to United States, so nothing here is a general rule that quietly does not apply to you.
Federal figures as published by the IRS for 2025. Every state with an income tax now uses its own 2025 bands or flat rate and standard deduction. City and county taxes are not included.
Moves that cut this year's bill
These are the United States moves you can make yourself, with no adviser and no structure to set up. They only count if the money moves before 31 December.
Max the 401(k) and IRA
Pay yourself into a retirement account before tax touches it.
Cuts taxable income dollar for dollar at your top federal and state rate.
Cost: $0 to $0 to set up, $0 to $200 a year.
Marcus, 41, software manager in San Jose, California, on $180,000
Puts the full $23,500 into his 401(k). That money sat in the 24% federal band and the 9.3% California band.
About $5,640 less federal tax and $2,185 less California tax, so $7,825 back. His employer's 4% match adds $7,200 he was leaving behind.
Rule behind it: 2025 limits: 23,500 elective deferral, 7,000 IRA, catch up above 50
Use an HSA as a stealth retirement account
A health savings account with a high deductible plan. Money goes in untaxed, grows untaxed and comes out untaxed for medical costs.
The only triple tax free account in the code, and after 65 it works like an IRA.
Cost: $0 to $0 to set up, $0 to $60 a year.
The Ruiz family, Austin, Texas, joint income $145,000
$8,550 into a family HSA through payroll, paying small medical bills from cash instead and keeping the receipts.
About $1,881 less federal tax at 22%, plus $654 of payroll tax saved because payroll contributions dodge FICA. Texas takes nothing either way.
Rule behind it: 2025 limits: 4,300 single, 8,550 family
What you can deduct or claim in United States
Pre-tax retirement contributions
401(k), traditional IRA, Solo 401(k) or SEP cut taxable income dollar for dollar.
Employees and the self-employed
HSA contributions
Deductible going in, tax free growth, tax free out for medical costs.
Anyone on a high deductible health plan
Itemised deductions
Mortgage interest, state and local taxes up to the cap, charitable gifts, large medical bills. Only worth it above the standard deduction.
Homeowners and big givers
Business expenses on Schedule C
Home office, mileage at the standard rate, equipment, software, health insurance premiums.
Self-employed
Qualified Business Income
A 20% deduction on pass-through profit, subject to income limits.
Sole proprietors, partnerships, S corps
Rental depreciation and costs
Depreciation, repairs, management fees, travel, interest.
Landlords
Loss harvesting
Realised losses offset gains, then $3,000 of ordinary income, and carry forward.
Investors
The filing steps, in order
- 1
Collect your information returns
W-2 from each employer, 1099-NEC and 1099-K for self employed work, 1099-INT and 1099-DIV, 1099-B for sales, and 1098 for mortgage interest.
Most arrive by 31 January
- 2
Pay quarterly if you are not on payroll
Self employed, rental or investment income usually needs estimated tax paid four times a year, or you get a penalty even if you file on time.
15 April, 15 June, 15 September, 15 January
- 3
Use the accounts that cut this year's bill
401(k) salary deferrals must happen through payroll before 31 December. IRA and HSA contributions can still be made up to the filing deadline.
31 December for payroll, 15 April for IRA and HSA
- 4
Choose standard deduction or itemise
Add up mortgage interest, state and local taxes up to the cap, and charitable gifts on Schedule A, then take whichever is larger.
With the return
- 5
File federal and state
Form 1040 with Schedule C for self employment, Schedule E for rentals and Schedule D with Form 8949 for sales, plus your state return where your state charges income tax.
15 April, or 15 October with Form 4868
- 6
Pay what you owe
An extension gives you more time to file, not more time to pay. Interest runs from the April date.
15 April
- 7
Keep the records
Three years normally, six if income was understated, and keep basis records for as long as you own the asset.
Ongoing
Forms to file with the IRS
| Form | What it does | When | Who needs it |
|---|---|---|---|
| Form 1040 | The individual return | By 15 April 2026, or 15 October with an extension | Everyone filing |
| Schedule C | Self-employed profit and loss | With Form 1040 | Sole proprietors |
| Schedule SE | Self-employment tax | With Form 1040 | Anyone with net profit over $400 |
| Schedule A | Itemised deductions | With Form 1040 | Those itemising |
| Schedule D and Form 8949 | Capital gains and losses | With Form 1040 | Investors and crypto sellers |
| Schedule E | Rental and pass-through income | With Form 1040 | Landlords and partners |
| Form 8995 | Qualified Business Income deduction | With Form 1040 | Pass-through owners |
| Form 8889 | HSA contributions and distributions | With Form 1040 | HSA holders |
| Form W-4 | Tell your employer how much to withhold | Any time, ideally after a pay change | Employees |
| Form 1040-ES | Quarterly estimated tax | 15 April, 15 June, 15 September, 15 January | Self-employed and investors |
| Form 709 | Gift tax return | With your return for the year of the gift | Anyone gifting over the annual exclusion |
Not covered on this page
- City and county income taxes, including New York City
- Alternative Minimum Tax and state specific credits
- State estate and inheritance taxes, which differ sharply by state
- Tax year: 2025. Your year ends 31 December.