2025 Tax Season and Financial Stewardship: How to Support Your Donors During Tax Filing

The 2025 tax season is here, and while some look forward to the possibility of a refund, for many others, it brings a sense of stress and uncertainty. Gathering the necessary documents, ensuring accuracy, navigating filing fees, and meeting looming deadlines can all feel overwhelming.
Your congregants are no exception. With ever-changing tax laws and complex filing requirements, the process can seem like a daunting task. But as a faith leader, you’re in a unique position to help.
By offering guidance and teaching financial stewardship, you can help your congregation make informed decisions and navigate this tax season with confidence and peace of mind.
Here are some key points your donors need to know, along with practical tips on how you can help them prepare.
2025 tax season: What your donors need to know
Tax season can bring a mix of emotions for your donors — some may feel confident and prepared, while others may feel overwhelmed by deadlines, paperwork, and the complexities of tax laws.
By equipping them with the right information and answering their most common questions, you can support their financial wellbeing and help bring them peace of mind during tax time.
Key 2025 tax season dates
Ensure your congregants are aware of two key tax dates. Encourage them to mark these dates on their calendars:
- Tax season begins: January 27, 2025
- Filing deadline: April 15, 2025
Essential documents for the 2025 tax season
Gathering the right documents is key to ensuring an accurate and hassle-free tax filing process. Missing or incorrect information can lead to delays, errors, or even missed deductions that could impact your donors’ refunds or tax liability.
Encourage your donors to start organizing their documents early to avoid last-minute stress. Providing them with clear guidance on what they need can help ease their anxieties and make tax season more manageable.
Tax documents generally fall into three main categories: income, deductions, and credits — each essential in determining their final tax outcome.
Tax income
Accurately reporting income is crucial for tax filing, as it determines taxable income and ultimately affects how much an individual owes or is refunded.
To ensure a smooth filing process, your donors should gather the following key income documents:
W-2 forms: These forms detail how much income was earned and how much was withheld in taxes. Employers must provide W-2 forms to employees by January 31, 2025. Those with multiple jobs should receive a W-2 from each employer.
1099 forms: These forms are used to report various types of additional income, including freelance work, royalties, and investment income. Common forms include:
- 1099-NEC: For reporting non-employee compensation such as freelance or gig work.
- 1099-K: For reporting payments received through third-party platforms like PayPal or Venmo, if total transactions exceed $5,000 for goods or services in 2024.
- 1099-DIV, 1099-INT, 1099-B: For reporting dividend payments, interest income, and investment-related transactions.
Tax deductions
Deductions lower taxable income, potentially leading to significant tax savings. Encourage your donors to collect documentation for the following common deductions:
- Charitable donations: Contributions to your organization and others may be tax-deductible with proper records. Be sure to send year-end giving statements to your donors for all donations received.
- Educational expenses: Tuition, fees, and student loan interest may be deductible with forms like Form 1098-T.
- Retirement contributions: Contributions to a traditional IRA or self-employed retirement account may qualify for deductions.
- Medical expenses: Qualifying medical expenses must exceed 7.5% of adjusted gross income for most taxpayers.
- Property taxes and mortgage interest: Found on Form 1098, provided by the lender.
Tax credits
Unlike deductions, which reduce taxable income, tax credits directly lower the amount of taxes owed. Common credits include:
- Child tax credit: Provides a credit up to $2,000 per child for the 2024 tax year.
- Education credits: The American Opportunity Credit and Lifetime Learning Credit help offset higher education costs.
- Retirement savings credit: Individuals with lower incomes may qualify for this credit when contributing to 401(k), IRA, or other retirement accounts.
Encouraging your donors to prepare these documents early can help them avoid tax season stress and maximize potential deductions or credits.
Addressing common donor tax questions
Tax season can bring uncertainty, and your congregants may have concerns about the filing process. While some questions may require guidance from a tax professional, you can provide reassurance by answering basic questions and directing them to reliable resources.
Here are a few common questions you might hear and their answers:
When can I start filing my 2025 taxes?
The IRS begins accepting 2025 tax returns on January 27, 2025.
What is the deadline to file my taxes?
The tax filing deadline is April 15, 2025.
What happens if I miss the deadline?
Missing the deadline may result in penalties and interest on any unpaid taxes. If needed, donors can request an extension but remind them that an extension only extends the filing deadline, not the payment deadline.
When will I receive my refund?
Refunds are typically processed within 21 days for those who file electronically and choose direct deposit. Taxpayers can check the status of their refunds on the IRS website.
Providing answers to common tax questions can help ease your donors’ concerns, but they may still need additional support to navigate the filing process. Thankfully, there are various tax filing tools available to help them file accurately and on time.
2025 tax season: Filing tools to help your donors
Tax filing can feel overwhelming, but the IRS offers free and low-cost tools to make the process easier for those who qualify.
This year, the IRS has expanded its free filing options, providing more opportunities for taxpayers to file accurately and affordably. Encourage your donors to check if they qualify for these programs before paying for tax preparation services.
For those who don’t meet the eligibility requirements, paid tax software or professional services can still help simplify the process.
IRS free filing options
Direct File
The IRS Direct File program was piloted last tax season and recently expanded for the 2025 tax season. Direct File is an IRS tool that allows eligible taxpayers to file their federal taxes directly with the IRS at no cost. It offers a simple, guided experience similar to commercial tax software, with customer support available in both English and Spanish.
Eligibility:
- Single filers earning up to $200,000
- Married couples filing jointly earning up to $250,000
IRS Free File
The IRS Free File program provides access to free, easy-to-use tax preparation software for eligible taxpayers.
Eligibility:
- Taxpayers with an adjusted gross income (AGI) of $84,000 or less in 2024
Paid software and tax services
For donors who don’t qualify for free IRS tools or who have more complex tax situations, paid tax preparation software and professional services may be the best option. Platforms like TurboTax, H&R Block, and TaxAct offer step-by-step assistance, while local tax professionals can provide more personalized guidance.
Encouraging your donors to explore these options early can help them avoid stress, maximize their returns, and ensure they file accurately before the tax filing deadline.
Teaching financial stewardship during the 2025 tax season
Churches and places of worship play a vital role in strengthening their congregants’ lives — not just spiritually, but in practical ways as well.
Tax season is an ideal time to teach financial stewardship because it requires people to examine their finances, assess their income and expenses, and make important financial decisions.
By providing education and resources during this time, you can help your congregation develop healthy financial habits, reduce stress, and make informed choices that align with their faith and values.
Here are a few ways to engage your congregation in financial stewardship during the 2025 tax season:
1. Share tax resources and guidance
Many people feel overwhelmed by taxes simply because they don’t know where to start. You can provide clarity by:
- Sharing links to free tax tools like IRS Free File or Direct File
- Explaining year-end giving statements and how charitable contributions impact tax deductions
- Creating a printed or downloadable checklist of necessary tax documents to simplify preparation
- Encouraging early preparation to avoid last-minute stress
By equipping your congregation with the right resources, you can help them feel more confident as they prepare to file their taxes.
2. Host financial literacy workshops
Workshops are a great way to engage your congregation in financial education while offering practical, faith-based guidance. Consider hosting sessions on:
- Tax preparation 101: Walk through common tax forms, deductions, and credits to help congregants file with confidence
- Budgeting with purpose: Teach the basics of creating a spending plan that prioritizes essentials, savings, and giving
- Smart saving strategies: Discuss how to build an emergency fund, plan for future expenses, and make wise financial choices
- Faith and finances: Highlight how financial stewardship aligns with biblical principles and the importance of generosity in the community
Workshops can be delivered in person, online, or even as part of a sermon series to reach more people.
3. Invite a tax expert for a Q&A session
Even with guidance, taxes can still feel complicated. Consider bringing in a tax professional or financial advisor for a Q&A session where congregants can:
- Get clarity on tax-related concerns, such as deductions, credits, and filing deadlines
- Receive guidance on common tax mistakes to avoid
- Learn how to maximize their refunds while staying compliant with tax laws
Bringing in a guest expert can provide trusted, up-to-date information and show your congregation that your church or place of worship is invested in their financial wellbeing.
Help your congregation thrive this 2025 tax season
Tax season may feel overwhelming, but it’s also an opportunity for your place of worship to serve and support your congregation in a meaningful way. By sharing valuable resources, answering common questions, and encouraging financial stewardship, you can help your donors approach the 2025 tax season with confidence.
As you guide your community through this process, don’t forget to send out year-end giving statements so your donors have the necessary documentation to claim their charitable contributions. A little preparation can go a long way in ensuring a smooth and stress-free experience.
By making financial stewardship a priority, you’re not only helping your congregants navigate tax season — you’re equipping them with the knowledge and tools to make wise financial decisions for their future.
This tax season extend the values of generosity, responsibility, and care beyond the offering plate and into the everyday financial lives of those you serve.