The Internal Revenue Service (IRS) has announced that the 2025 tax-filing season will officially commence on January 27, 2025. The agency anticipates receiving over 140 million individual federal tax returns by the April 15 federal deadline. Most taxpayers have until this date to file their returns, with approximately one-third of the submissions expected to result in refunds.
To streamline the filing process, the IRS has expanded its Direct File program for 2025, enabling taxpayers in 25 states to file state returns at no cost. For those who file electronically and opt for direct deposit, refunds are expected within 21 days, provided there are no inaccuracies or other issues. However, those who choose to file paper returns by mail will face a longer wait, with refunds taking at least four weeks to process.
Taxpayers must meet specific criteria to qualify for Direct File, including being a W-2 employee, receiving Social Security or unemployment insurance, or having investment income below $1,500. For residents in states without Direct File access, the IRS offers Free File, a complimentary online service available to filers with an adjusted gross income of $79,000 or less.
Employers and financial institutions are required to furnish individuals with W-2 and 1099 forms for 2024 by January 31, 2025. Meanwhile, taxpayers can submit their returns through the agency’s website now, which will be automatically filed on January 27, 2025.
For those unable to meet the April 15 deadline, the IRS allows for tax extensions. However, an estimated payment must still be made in April, regardless of the extension request. Taxpayers granted an extension will have an additional six months to submit their completed returns.
As the IRS gears up to process returns starting late January 2025, taxpayers are encouraged to leverage available resources and services to ensure a smooth filing experience. The IRS remains committed to assisting taxpayers through its various programs and services designed to simplify the process and expedite refunds.
Featured image courtesy of The Japan Times
