The Internal Revenue Service (IRS) has announced that the 2025 tax-filing season will commence on January 27, 2025. Most taxpayers will have until April 15, 2025, to submit their federal tax returns. For those who prefer mailing their returns, it is important to note that refunds may take at least four weeks to process. Meanwhile, the IRS has expanded its Direct File program to include state returns for free in 25 states, offering a more streamlined filing option for taxpayers.
Taxpayers who find themselves in areas declared as FEMA disaster zones may benefit from extended deadlines to file both state and federal returns. However, for the majority, the deadline to request a tax extension remains April 15, 2025. Individuals seeking an extension should be aware that they must still make an estimated tax payment by this date, even if they file IRS Form 4868 to request more time.
The IRS anticipates receiving over 140 million individual federal tax returns by the April 15 deadline. Approximately one-third of these submissions are expected to result in refunds. To facilitate a smooth filing process, employers and financial institutions are required to provide W-2 and 1099 forms to individuals by January 31, 2025.
For those who file electronically and opt for direct deposit, the IRS estimates that refunds should arrive within 21 days of filing. Additionally, the IRS Free File service remains available to individuals with an adjusted gross income of $79,000 or less, providing a no-cost option for eligible filers.
The IRS will begin processing returns in late January 2025. As part of this year's updates, the expansion of the Direct File program allows taxpayers in selected states to file their state returns without incurring additional costs. This initiative aims to simplify the filing process and reduce the financial burden associated with tax preparation.
Residents and businesses affected by natural disasters can expect further guidance on extended deadlines from the IRS. These extensions are designed to provide relief and allow additional time for those impacted by unforeseen circumstances to meet their tax obligations.