Benjamin Franklin famously said that “death and taxes” are the only two certainties in this world. While the timing of the first is uncertain, the second rolls around reliably every year—and for taxpayers in the United States, the time is now. Tax season officially kicks off tomorrow, Monday, January 27, 2025. Here’s your go-to guide to navigate it with ease.
Key Dates to Keep in Mind
- Tax Season Start Date: January 27, 2025
- Tax Filing Deadline: April 15, 2025 (Tuesday)
- Extension Deadline: October 15, 2025 (for those who file for an extension by April 15)
While tomorrow is the first day the IRS begins accepting returns, you can prepare your tax documents today to ensure you’re ready to file.
Filing Early: Why It Matters
Filing early has its perks. It puts you at the front of the line for processing and helps protect against tax-related identity theft. If you’re expecting a refund, early filers often get their money sooner.
What’s New This Tax Season
- IRS Free File Available Now IRS Free File opened earlier this month, on January 10, 2025. If your income is $73,000 or less, you can use the Free File program to prepare and e-file your taxes at no cost.
- Changes in IRS Leadership With recent shifts in IRS leadership, including Acting IRS Commissioner Douglas O’Donnell, taxpayers may notice slower processing times due to staffing constraints and policy changes.
- Global Tax Agreement Changes the U.S. has shifted its stance on the OECD global tax agreement, impacting multinational corporations and potentially affecting tax revenues and compliance for large businesses.
- Hiring Freeze Impact A federal hiring freeze for the IRS may lead to delays in processing returns and issuing refunds. Filing early and electronically can help mitigate these delays.
Deadlines and Extensions
- April 15 Deadline: Make sure to file your taxes by April 15 to avoid penalties. If you owe taxes, payments are also due on this date.
- Extensions: Requesting an extension gives you until October 15 to file, but it doesn’t delay your payment deadline. You must pay any owed taxes by April 15 to avoid penalties and interest.
What If You Miss the Deadline?
Missing the April 15 deadline can result in penalties:
- Failure to File: 5% of unpaid taxes for each month the return is late, up to 25%.
- Failure to Pay: 0.5% penalty for each month taxes are unpaid, even if you’ve filed.
Filing for an extension can help you avoid the failure-to-file penalty.
Refunds: What to Expect
- E-File Refund Timeline: Most refunds are issued within 21 days for electronically filed returns.
- Paper Return Timeline: Refunds for paper returns can take up to six weeks.
- Track Your Refund: Use the IRS “Where’s My Refund?” tool to monitor your refund status. Information is typically available within 24 hours of e-filing or four weeks after mailing a paper return.
Tips for a Smooth Filing Process
- Gather Documents Early: Collect W-2s, 1099s, and other financial records.
- Use Trusted Software or Professionals: Filing electronically or through a tax professional ensures accuracy.
- Double-Check for Deductions and Credits: Don’t miss out on tax benefits like the Earned Income Tax Credit or the Child Tax Credit.
- Pay Attention to State Taxes: Ensure you’re meeting filing requirements in your state as well.
Don’t Wait—Get Started Today
Even though tax season officially begins tomorrow, there’s no need to delay. Gather your documents, decide whether you’ll file yourself or work with a professional, and start the process to ensure a stress-free tax season.
This article might help you: IRS Announces 2025 Tax Updates: What You Need to Know
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