Tax season is officially here! The IRS has begun accepting and processing federal individual tax returns for the 2024 tax year. Millions of taxpayers have already submitted their returns, and more than 140 million individual tax returns are expected to be filed before the Tuesday, April 15, 2025, deadline.
Navigating tax season can be overwhelming, but understanding key details can help make the process smoother. Whether you file on your own or with a tax professional, here’s what you need to know about this year’s tax season.
Filing Deadlines and Extensions
The federal tax filing deadline is April 15, 2025. However, taxpayers residing in a federally declared disaster area may qualify for additional time to file and pay federal taxes. If more time is needed, taxpayers can request an extension, which will grant them until October 15, 2025, to file their return. However, an extension to file does not grant an extension to pay taxes owed.
E-Filing and Direct Deposit: A Faster and More Secure Option
The IRS encourages taxpayers to file electronically and choose direct deposit for refunds. Electronic filing reduces errors since tax software automatically calculates amounts and flags common mistakes. Direct deposit ensures faster access to refunds, as paper checks are 16 times more likely to encounter issues such as being lost, misdirected, or stolen.
Free Tax Filing Assistance
Several free tax filing options are available for eligible taxpayers:
- IRS Free File: Individuals earning $84,000 or less can access IRS Free File Guided Tax Software.
- Direct File: Available in 25 states, this tool allows taxpayers to file directly with the IRS at no cost.
- Volunteer Income Tax Assistance (VITA): Free assistance for taxpayers earning $67,000 or less, individuals with disabilities, and those with limited English proficiency.
- Tax Counseling for the Elderly (TCE): Specialized help for taxpayers 60 and older, particularly for retirement-related tax questions.
- MilTax: A Department of Defense program providing free tax filing for active military members and some veterans.
Refund Timing and Earned Income Tax Credit (EITC) Delays
Most refunds are issued within 21 days. However, due to the Protecting Americans from Tax Hikes (PATH) Act, refunds for returns claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) cannot be issued before mid-February. The IRS expects most EITC/ACTC-related refunds to be available by March 3, 2025.
Ensuring a Smooth Filing Process
To avoid delays and errors, taxpayers should:
- Gather all necessary tax documents, including W-2s, 1099s, and other income statements.
- Accurately report all taxable income, including payments received through online marketplaces or payment apps.
- Choose a reputable tax professional if seeking professional assistance.
- Stay alert to tax scams, including fraudulent tax preparers and phishing attempts claiming to be from the IRS.
IRS Improvements and New Tools for Taxpayers
The IRS has made several enhancements for the 2025 filing season, including:
- Updated Online Accounts: Taxpayers can now view past tax returns, request an Identity Protection PIN, sign forms electronically, and access digital notices.
- Redesigned Notices: The IRS has redesigned 284 notices for clarity and ease of understanding.
- Mobile-Adaptive Tax Forms: More forms are now accessible on mobile devices with save-and-draft functionality.
- Enhanced Virtual Assistants: Improved chatbot and voicebot services provide faster help with tax-related questions and refund inquiries.
Avoiding Tax Scams and Identity Theft
Tax season attracts scammers attempting to steal personal and financial information. Warning signs include:
- Unsolicited messages promising large refunds.
- Threats of immediate arrest or penalties for unpaid taxes.
- Fake IRS websites with misspelled URLs.
- Requests for Social Security numbers or bank details via phone or email.
If identity theft is suspected, taxpayers should still file their return and visit IRS Identity Theft Central for assistance.
Get Started Today
Tax season doesn’t have to be stressful. Filing early, choosing electronic filing, and utilizing free IRS resources can help ensure a hassle-free experience. Visit IRS.gov to access online tools, find free filing assistance, and stay informed about the latest tax updates. Start your tax return today and avoid the last-minute rush! If you don’t have the time or wherewithal to prepare for filing, don’t hesitate to reach out to Bookkeeping Confidential. Book your free discovery call with us to see how we can help your agency.