The 2025 tax filing season has officially kicked off with the Internal Revenue Service (IRS) beginning to accept individual tax returns for the year 2024. This year, the agency anticipates processing over 140 million federal tax returns before the federal deadline of April 15.
The opening of this tax season is particularly significant as it also marks the availability of the IRS’s free Direct File service, which began on January 27. This service is accessible to residents in 25 states, helping about 32 million taxpayers to file their returns more easily and affordably. The launching of this tool reflects the IRS's continued commitment to making tax filing less burdensome and more efficient for American households.
According to the IRS, around two-thirds of the taxpayers are expected to receive refunds this year, with averages around $3,100, according to last year’s data. Potential filers are encouraged to utilize trusted tax professionals to avoid scams and other pitfalls associated with tax preparation.
One of the notable factors affecting this tax season is the waiting period for taxpayers claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC). By law, tax refunds for these credits cannot be issued until after mid-February, which means consumers may need to wait longer for their refunds. The IRS notes, "Most EITC/ACTC-related refunds are expected to show up by March 3, provided there are no issues with the returns and the savings are chosen for direct deposit." This policy is part of the Protecting Americans from Tax Hikes (PATH) Act, enforced to prevent fraudulent claims on these beneficial credits.
With so many people eagerly awaiting their refunds, the IRS has streamlined the process for checking refund statuses through its online tool, 'Where's My Refund?'. Taxpayers who file electronically typically receive status updates within 24 hours, whereas those using paper returns might wait as long as four weeks. The IRS helps manage expectations by stating, "The best practice is to check your refund status intermittently, as updates occur daily overnight." This feature is particularly helpful for tax filers planning their finances around their expected refunds.
Taxpayers also have access to free options for preparing and filing their taxes. Eligible individuals with adjusted gross incomes of $84,000 or below can take advantage of the IRS Free File program, which offers guided tax preparation software. The IRS also emphasizes the importance of early and accurate filings to avoid delays and complications.
Despite the potential for delays with certain credits, most returns are issued within 21 calendar days after filing. For those submitting returns electronically, this could mean receiving refunds as soon as February 17. The IRS advises taxpayers to keep their personal information secure, as the agency has identified increased risks of tax-related scams during the tax season.
Throughout this tax season, the IRS emphasizes the importance of not rushing to file before ensuring all income and tax documents are gathered, which is key to avoiding issues later on. Missing or incorrect information can lead to significant delays or even the requirement for taxpayers to send additional documentation, prompting longer processing times.
The IRS expects to fulfill its mission to maintain lower service wait times. Historically, the agency has strived for 5-minute wait times for processing inquiries, but it notes higher traffic on early filing dates and approaching tax deadlines. Taxpayers are encouraged to plan accordingly to avoid busy periods, particularly on Mondays and Tuesdays, as well as during the Presidents Day weekend, which can congest call volumes.
To facilitate smoother processing, the IRS has increased the accessibility of its online resources. Taxpayers can now create or access their IRS Online Accounts, where they can check on various aspects of their tax status and filings. The IRS has also introduced virtual assistants and chatbots to assist filers, which have been successfully organizing and directing inquiries without additional wait times. Citizens can now rely on these automated systems for more streamlined services.
Overall, as the tax filing season of 2025 progresses, the IRS remains adamant about assisting taxpayers and preventing potential issues surrounding refunds and filings. With resources widely available and educational tools at taxpayers’ disposal, the process aims to be as painless as possible, setting up many American families for financial relief through tax returns this season.