The 2025 Tax Season Is Here: Key Dates And Details You Need To Know
The tax season for 2025 is now underway, bringing with it important deadlines and updates for all taxpayers. The Internal Revenue Service (IRS) officially begins accepting tax returns on Monday, January 27, 2025, marking the commencement of tax season for the 2024 tax year. It is high time for taxpayers to gather their documents and prepare for this annual financial responsibility.
Are you wondering when your tax filing should happen? Tax Day 2025 is set for Tuesday, April 15, 2025. This date is typically consistent, falling on April 15 each year, except when it lands on a holiday or weekend. To avoid any penalties, it's imperative for taxpayers to submit their returns on time—either through traditional mail by ensuring the envelope is properly addressed and postmarked, or electronically, which can expedite the refund process.
Speaking of refunds, taxpayers can expect to see their money back swiftly if they file early and opt for electronic filing with direct deposit. The IRS typically processes refunds within 21 days for those who submit their returns electronically. For those who prefer paper returns, patience may be required as it usually takes 6 to 8 weeks for the IRS to process these filings.
Highlights this tax season include the expectation for taxpayers who received over $5,000 from goods and services through online platforms to receive Form 1099-K. This change marks the IRS's heightened scrutiny to track income from gig work and sales made through digital marketplaces. Pay attention to your mailbox for W-2 and 1099 forms since employers are required to distribute W-2 forms no later than January 31, 2025.
The IRS warns of financial repercussions for late filers. The standard failure-to-file penalty is set at 5% of unpaid taxes for each month the return is late, capping at 25%. For individual taxpayers, April 15 is also the last day to make contributions to individual retirement accounts (IRAS) and Health Savings Accounts (HSAS) for the tax year of 2024.
Should you find yourself needing extra time, the IRS allows taxpayers to file for extension. This request must also be submitted by April 15, granting six additional months to file—until October 15, 2025—without incurring penalties. While the extension eases the filing burden, it does not exempt taxpayers from paying the taxes owed by the April deadline. There are several methods for filing for extension, including paying online and checking the box for filing extension or using IRS Free File for electronic requests.
If you’re one of those who have suffered due to natural disasters—such as the recent wildfires affecting Southern California—there may be automatic extensions available. Victims of such disasters may have until October 15, 2025, to file certain federal individual and business tax returns, as well as make tax payments.
Wondering about your tax refund? According to the IRS, the average refund issued for 2024 income tax filings was approximately $3,138. Taxpayers can check the status of their refunds using the “Where’s My Refund?” tool on the IRS website, providing them with real-time updates on their refund status. Refunds are typically processed within 21 days provided all documentation is accurate, which significantly reduces the waiting time versus traditional paper checks.
For those filing early, good news! While refunds are expected to start rolling out shortly after the filing season kicks off, those who submit their returns early and opt for direct deposit could potentially see refund checks by Valentine's Day. If you've not yet received your refund by the expected date, it’s helpful to revisit the IRS's tracking tool to check if your refund status indicates it is 'Received,' 'Accepted,' or 'Sent'.
To view your refund status, visit the IRS web portal, find the ‘Where’s My Refund?’ option, and enter the necessary details such as Social Security number, filing status, and refund amount. The addition of taxpayer support and clear communication guidelines is aimed at enhancing the taxpayer experience during this busy season.
Finally, as the 2025 federal tax season progresses, being well-informed of deadlines and filing options will not only streamline your tax compliance but will also help you secure any potential refunds swiftly. Remember, being proactive about filing your taxes can eliminate stress and help you avoid financial penalties later on.