What Tennessee Taxpayers Need to Know for 2025
Tax Day might seem far in the future, but it’ll be here before we know it. If you haven’t given much thought to taxes since April 2024, you’re not alone. Here’s a quick refresher to catch you up on what you need to know as you prepare to file this year’s return.
– When is the filing deadline? For most Tennesseans, the federal individual income tax filing deadline is Tuesday, April 15. Residents of several East Tennessee counties who were affected by Hurricane Helene have until May 1 to file, following a disaster declaration issued by FEMA. Taxpayers can file for a six-month extension if necessary, but must do so by April 15.
– Can I file my taxes electronically for free? Yes! This year, the IRS has expanded its new DirectFile electronic tax filing service to 25 states after previously offering it on a pilot basis. Unlike the IRS’ Free File program, in which third-party vendors offer no-cost but pared-down versions of their software to qualified taxpayers, DirectFile (available at https://directfile.irs.gov) was created by the IRS and is completely free to all taxpayers, regardless of income level. DirectFile’s only drawback is that it doesn’t cover every type of income. While wages, Social Security, interest, retirement and unemployment are all covered, self-employment and some types of investment income are not.
– Are there any major tax law changes this year? No, but hang tight for some changes coming soon. Whether due to previous laws sunsetting or Congress enacting new laws this year, taxpayers will be doing their taxes differently in 2026 no matter what.
– What tax credits are likely to apply to me? If you’re a low- and middle-income taxpayer, you may qualify for one or more popular credits, such as the Earned Income Tax Credit (EITC), the Child Tax Credit or the Retirement Savings Contributions Credit.
Unlike other credits, the EITC doesn’t require people to have paid taxes to qualify. Generally, those who get the maximum EITC earn minimum wage at 40 hours a week. However, qualifying income can also come from temporary, freelance or gig jobs like driving for Uber, selling goods online, cleaning houses, babysitting or operating one’s own business (interest and dividends, Social Security, unemployment benefits, alimony and child support don’t apply). Low-income taxpayers with three or more qualifying children can receive as much as $7,830.
The Child Tax Credit is another popular credit that can reduce a taxpayer’s tax burden or produce a cash refund, depending on the situation. In addition to being available to single taxpayers, head-of-household taxpayers, and married couples filing jointly, it can be taken by eligible married couples filing separately if they were living separately the last six months of the year. The Child Tax Credit is $2,000 per qualifying child (among the requirements, the child has to be age 16 or below as of the end of 2024, be legally or biologically related to you and be properly claimed as a dependent on your tax return).
Those saving for retirement should also take advantage of the Retirement Savings Contributions Credit (also known as the Saver’s Credit), which can potentially reduce a tax bill by $1,000 per taxpayer or $2,000 for married couples based on how much they contributed to IRAs, 401(k) plans or similar workplace retirement programs during the past year.
– Where can I get free tax assistance? Tennesseans needing free help with their taxes have several great options. The IRS’s Volunteer Income Tax Assistance (VITA) program offers assistance to low-income and at-risk taxpayers. A separate IRS program, Tax Counseling for the Elderly (TCE), is also available to those ages 60 and up. To locate help near you, call 800-906-9887 (VITA) or 888-227-7669 (TCE) or visit https://irs.treasury.gov/
Legal Aid Society’s statewide Tennessee Taxpayer Project is an additional free resource for taxpayers who have questions related to their tax returns or need help with a federal tax problem. Call Legal Aid Society’s hotline toll-free at 866-481-3669 to receive a free consult. We can’t prepare tax returns, but we can assist with tax-related matters for qualifying low-income Middle Tennessee residents. Call us or visit https://las.org to learn more.
About Legal Aid Society
Legal Aid Society of Middle Tennessee and the Cumberlands advocates for fairness and justice under the law. The nonprofit law firm offers free civil legal representation and educational programs to help people in its region receive justice, protect their well-being and support opportunities to overcome poverty. It serves 48 counties from offices in Clarksville, Columbia, Cookeville, Gallatin, Murfreesboro, Nashville, Oak Ridge and Tullahoma. Legal Aid Society is funded in part by United Way. Learn more at https://las.org or by following the firm on Facebook.
