Why Tax Season is Different in Tennessee (2025)

2025 Tax Season Preparation Tips for Nashville Homeowners and Future Residents

As a homeowner or aspiring homeowner in the Nashville, TN metro area, tax season isn't just about filing returns—it can also affect your financial strategy, from managing deductions to planning future investments. The end of 2024 is fast approaching, and now is the perfect time to prepare for the 2025 tax season.

Key Tax Deadlines for 2025

Nashville residents should mark their calendars for these essential tax dates:

• January 31, 2025: Deadline for employers to send out W-2 and 1099 forms.
• April 15, 2025 (Tuesday): Federal tax filing deadline or the deadline to request an extension.
• October 15, 2025 (Wednesday): Deadline for those who file an extension.

With Tennessee being one of 10 states without state income tax, residents only need to focus on federal tax filing, reducing the overall tax-related stress.

Maximizing Tax Benefits as a Nashville Homeowner

As a homeowner, you might qualify for deductions or credits that lower your taxable income. Here are some key considerations:

1. Mortgage Interest Deduction: Deduct the interest paid on your home mortgage for significant savings.
2. Property Taxes: Include these as an itemized deduction.
3. Home Improvements for Energy Efficiency: If you’ve upgraded with solar panels or energy-efficient systems, check for federal tax credits.

Not sure what applies? Consult a tax professional familiar with Tennessee's housing market to ensure you leverage all potential savings.

What’s New for 2025 Taxes?

This year, the IRS introduced changes that could impact Tennesseans:

• Form 1099-K for Payment Transactions: If you’ve sold goods or earned side income through platforms like Venmo or PayPal, you may receive this form for transactions exceeding $5,000.
• Updated Tax Brackets: Adjusted for inflation, these brackets determine how much of your income is taxed.

Nashville residents with rental properties should also keep an eye on these updates.

Efficient Tax Filing Tips

Stay ahead this tax season with these IRS recommendations:

1. Organize Early: Gather all forms and receipts now to avoid scrambling later.
2. Check Withholdings: Ensure you’re not overpaying or underpaying taxes.
3. Use Direct Deposit: This ensures faster refunds, typically within 21 days.

Tennessee: A Tax-Friendly State

One reason Nashville continues to attract homeowners is Tennessee's lack of state income tax, meaning residents focus solely on federal taxes. For potential homeowners, this financial benefit can make purchasing in Nashville even more appealing.

How Nashville Real Estate Aligns with Tax Savings

Owning a home in Nashville doesn’t just offer lifestyle perks—it can also reduce your taxable income. With the city’s growing market, now is an excellent time to explore buying, selling, or investing in real estate. Contact Jamison, your trusted Nashville real estate agent, to discuss how homeownership can align with your financial and tax planning goals.

Stay informed, stay organized, and make the most of your opportunities this tax season!

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