What tax pros need to know about new 2025 tax forms

The IRS has released draft versions of several 2025 tax forms, giving tax professionals an early look at what’s coming for the next filing season. While these forms won’t be available for e-filing until January 2026, the updates signal meaningful changes that will affect preparation workflows, client conversations and compliance strategies. Reviewing the drafts now can help you stay ahead and avoid last-minute surprises when the season opens.

When 2025 forms will be available

Although many draft versions have been released already, final versions of 2025 tax forms will be available for preparation and e-filing starting in January 2026. Once released, forms and instructions can be accessed through the IRS website and professional tax software platforms. As a reminder, draft forms are informational only and should never be used for filing. However, they are a valuable planning tool for tax pros who want to prepare early.

What’s new on Form 1040

Form 1040, U.S. Individual Income Tax Return, sees notable updates for tax year 2025, reflecting both inflation adjustments and legislative changes. One of the most significant developments is the introduction of Schedule 1-A, Additional Deductions, a new schedule designed to capture additional deductions. By shifting certain items into a dedicated schedule, the IRS aims to improve clarity and consistency in reporting.

For practitioners, this means learning new line placements, understanding documentation requirements and updating internal checklists. Even small structural changes can affect review processes and client interviews, making early familiarity essential.

Higher standard deduction amounts

As expected, the standard deduction increases for tax year 2025, which may impact filing strategies for a wide range of clients. Updated amounts include:

• $15,750 for single filers or those married filing separately
• $31,500 for married couples filing jointly or qualifying surviving spouses 
• $23,625 for heads of household

These increases could push more taxpayers toward taking the standard deduction rather than itemizing. Seniors now have the enhanced senior deduction that can help lower their taxable income. For tax pros, this is an opportunity to reassess prior-year strategies and explain to clients how inflation adjustments affect their bottom line.

Child tax credit adjustments

The child tax credit (CTC) increases to a maximum of $2,200 per qualifying child for tax year 2025. Changes to the refundability threshold may also allow more families to qualify for refundable benefits.

Because CTC remains one of the most impactful credits for individual filers, these updates are likely to generate client questions. Tax professionals will need to explain eligibility rules and income phaseouts, plus you’ll need to know how the revised credit flows through other tax forms too. 

Expanded reporting requirements

The 2025 tax year continues the trend toward increased reporting and transparency. Two areas receiving heightened attention include:

• Gig economy income: Enhanced reporting requirements may affect clients with multiple income streams or platform-based earnings.
• Cryptocurrency transactions: Ongoing regulatory changes continue to refine how digital asset activity must be reported.

These updates reinforce the importance of thorough intake procedures and proactive client education. Tax pros should ensure they are asking the right questions and collecting complete records to avoid any underreporting or compliance issues.

Preparing your practice

The 2026 filing season is bringing significant change and being unprepared isn’t an option. New and redesigned IRS forms and updated schedules will directly affect how you prepare and explain returns to your clients. 

The upcoming NATP webinar, Apply the 2025 IRS Form Changes in Real Filing Scenarios, scheduled for Jan. 26 and 30, 2026, is designed to help you stay ahead with clarity and confidence. In this practical, practitioner-focused webinar, you’ll get a guided walkthrough of the new IRS forms debuting for 2025 returns and the key changes to existing individual and business forms. You’ll see how layouts and data-entry points differ from prior years, and what those changes mean for compliance. Examples and practitioner-focused explanations help clarify how these forms apply in real filing situations.