The Internal Revenue Service (IRS) has announced that Monday, January 27, 2025, marks the official start of the tax season, opening the door for Americans to begin filing their tax returns for the 2024 tax year.
While this date is significant, individuals eager to get a jump start can file their returns even earlier to ensure their submission is among the first in line for processing. According to tax experts, filing early can be advantageous. for instance, if there aren’t any issues with your tax return, you’ll be among the first to receive your refund. Reflecting on tax refunds, for most Americans, tax refunds represent the largest paycheck of the year.” Data from the IRS indicates that the average refund for the third week of October last year was approximately $3,004, an increase of 0.9% compared to the previous year.
How Quickly Are Refunds Processed?
The IRS typically processes most refunds within 21 calendar days. To stay informed about your refund status, utilize the Where’s My Refund? tool, which updates once daily and provides information within 24 hours of e-filing. For those submitting paper returns, refund information generally becomes available after a four-week waiting period.
Important Tax Dates: Tax Day in 2025 is crucial for both taxpayers and tax preparers. You can stay ahead by understanding deadlines and available deductions, income brackets, and credits.
Streamlining Your Refund Experience
For the fastest and most reliable way to receive your refund, consider e-filing your tax return and opting for direct deposit. The Treasury’s Bureau of the Fiscal Service reports that paper checks are significantly more prone to issues, such as being lost or misdirected—16 times more likely, to be precise.
Preparing Your Taxes Now
If your tax situation is straightforward, you are encouraged to begin your e-filing today using various tax preparation software options. You can choose from providers or directly via the IRS website. The IRS Free File program offers free electronic filing solutions for most taxpayers with an Adjusted Gross Income (AGI) of $84,000 or less. This initiative, hosted exclusively on IRS.gov, collaborates with eight participating companies to provide free guided tax software. Notably, one of the partners also provides a filing product in Spanish.
Other Free Filing Options Available Taxpayers who need assistance can explore additional free filing alternatives, including:
- Volunteer Income Tax Assistance (VITA)/Tax Counseling for the Elderly (TCE): Community organizations offer IRS-certified volunteers who provide free tax assistance to eligible individuals, including low-income families, the elderly, and non-native English speakers.
- MilTax: This Department of Defense program delivers free tax preparation and electronic filing software for service members and many veterans.
- IRS Direct File: A New Way to File Your Taxes Launching on January 27, 2025, the IRS’ free web-based filing system, Direct File, will be available to taxpayers across 25 states. Initially introduced last year in 13 states, Direct File can be accessed on various devices, including mobile phones, laptops, and tablets. Notable states participating include California, New York, Texas, and Florida.
This year, Direct File includes enhanced features such as a live chat tool and a data import capability, allowing taxpayers to securely import information directly from their IRS profile. The tool is designed to assist with a broader array of tax credits and deductions, ensuring that taxpayers can navigate their filing more effectively.
What to Expect in the 2025 Tax Season
As we approach the 2025 tax season, expect more support and resources aimed at facilitating a smoother tax filing experience. With improvements in tools and accessibility, taxpayers are encouraged to leverage these services to maximize their benefits and minimize stress during this busy time.
2025 brings many changes for taxpayers. Learn more about how the IRS has adjusted federal income tax brackets for 2025 by reading our article.
