The 2025 tax season is officially underway, and the Internal Revenue Service (IRS) is preparing for the massive influx of filings expected from millions of Americans. Taxpayers are urged to start filing their returns now, particularly those eligible for the Earned Income Tax Credit (EITC), as early submissions can lead to quicker refunds.
The IRS has confirmed their processing capabilities have ramped up, with more than 140 million returns anticipated before the April 15 deadline. For individuals who opt for electronic filing coupled with direct deposit, refunds can typically be received within 21 days post-acceptance. Yet, the agency also warns taxpayers to avoid relying on specific receipt dates, particularly considering potential delays.
For the upcoming tax season, the IRS will begin processing EITC refunds after February 15, 2025. This schedule is largely governed by the Protecting Americans from Tax Hikes (PATH) Act, which necessitates additional identity verification for certain credits like the EITC and Additional Child Tax Credit. "The IRS cannot issue Earned Income Tax Credit or Additional Child Tax Credit refunds before mid-February due to extra identity checks with those credits," according to The Washington Post.
The expected date for taxpayers to see their EITC refunds is February 27, 2025, for those who filed electronically. If you opted for paper checks, it may take longer, possibly extending to the first week of March 2025. The EITC refund amounts range from $632 for individuals without children to as much as $7,830 for those with three or more children, making it imperative for filers to be aware of their eligibility to maximize their returns.
Taxpayers can check the status of their refunds using the IRS’s "Where’s My Refund?" tool, which provides updates on whether the return is received, accepted, or sent. To use this feature, taxpayers will need their Social Security number, filing status, and the refund amount claimed. IRS officials note, "These payments are an example of our commitment to go the extra mile for taxpayers," highlighted Danny Werfel, the then-IRS Commissioner.
Stimulus checks are also part of the current financial assistance scenario. Many taxpayers may find themselves qualifying for additional payments due to previously unclaimed Recovery Rebate Credits from their 2021 filings. The IRS has initiated automatic disbursement of checks for those eligible, ensuring they do not have to navigate the tedious process of amending past filings to claim their benefits. If you did not file your 2021 taxes, the IRS has extended the deadline till April 15, 2025, to enable you to claim these credits and potentially receive payments of up to $1,400.
To avoid any delays, the IRS advises taxpayers to double-check their information—such as bank account details and mailing addresses—before submitting their returns. This simple step can facilitate smoother processing and timely refunds. If tax returns filed via mail are expected to take longer—about two months for paper checks—individuals who opted for electronic methods are encouraged to complete their filing as soon as possible.
Taxpayers should also be mindful of the various factors influencing refund payment dates under the new 2025 schedule, including choosing direct deposit to receive refunds directly to their accounts, which can significantly reduce waiting times. For filers who submitted through the mail, it might take up to four weeks to track refund status, contrastingly up to only 24 hours for electronically filed returns.
Should taxpayers miss the expected date of their refund, whether due to processing delays or banking issues, they’re advised to first contact their banks and then utilize the IRS’s "Where’s My Refund?" tool or the IRS hotline for assistance. Understanding these processes will be key for taxpayers as they navigate through the 2025 tax filing season.
With the financial pressures many face, knowing the intricacies of the IRS tax refund schedules and potential stimulus payments can help alleviate stress and uncertainty during this pivotal time of the year.