The 2025 US tax season is officially underway, with many Americans starting to receive their W2 and other tax forms as of January 27. This marks the time of year when taxpayers begin to ponder the possibilities of tax refunds and navigate the often confusing process of filing their returns.
This season, the spotlight seems to shine brightly on the question looming over many filers: "When will I get my tax refund?" According to the CPA Practice Advisor, this has been the most ubiquitous inquiry for nearly 15 years now. While nobody can provide exact timelines, expectations can be set based on several factors ranging from the timing of filing to the complexity of individual financial circumstances.
A notable example of the challenges faced by new filers is Alyssa Melani, a 23-year-old part-time employee, freelance actress, and small business owner. Melani revealed, "It's really intimidating, and every season I'm forever feeling like I don't know what I'm doing." To help her navigate her situation, she turned to her father and hired a personal accountant, mirroring the experiences of many first-time taxpayers.
Determining whether you need to file taxes at all is the first step for many. The IRS requires most citizens and residents to file if their gross income exceeds certain thresholds. For example, single filers must file if they earn $14,600 or more, heads of household need to hit $21,900, and married couples under 65 must file if they earn $29,200. On the other hand, if you are being claimed as someone else's dependent, you only need to file if you have unearned income exceeding $1,300, such as dividends or interest.
Interestingly, as reported by TurboTax expert Lisa Greene-Lewis, many young individuals, particularly from Generation Z, may not realize they qualify for refunds even if they don't meet the IRS thresholds. Greene-Lewis highlighted, "The IRS has more than $1 billion in unclaimed returns." A Talker Research survey found 20% of Gen Z respondents believe they don't need to file at all, missing out on potential financial gains.
Once it’s confirmed you need to file, the next step involves gathering tax documents, which includes your Social Security number, your W-2 forms from employers, 1099 forms for freelance income, and relevant receipts for tax-deductible expenses. Greene-Lewis notes one common mistake is entering the Social Security number incorrectly, which can delay processing.
Filing dates are another pressing issue. The general filing deadline is April 15, 2025, though some groups may qualify for extensions. For example, individuals affected by specific disasters may receive additional time to submit their returns. Greene-Lewis urges filers to get their returns done early, stating, "They may find they have a refund and they'll be able to have it pocket," encouraging prompt filing to permit quicker access to funds.
While the excitement of potential refunds is palpable, those who realize they cannot file by April 15 can still obtain relief through Form 4868, which grants an extension until October 15, 2025, no questions asked. It’s important for those who owe taxes, though, to keep the April deadline to avoid penalties.
Perhaps the most proactive step for confused taxpayers, whether experiencing their first tax filings or feeling overwhelmed by the process, is to reach out to professionals for guidance. Despite Gen Z's reluctance to seek professional help, statistics show about half of all filers do get assistance. Greene-Lewis cautions, saying, "Ask things you feel might be silly, because we really are going at it at baseline zero." Filers can also utilize IRS Direct File, which simplifies the process for taxpayers residing in 25 participating states, allowing submissions directly online.
For new filers, taking the time to research available deductions and credits may result in significant savings. From the Earned Income Tax Credit to the Student Loan Interest Deduction, several avenues may save filers hundreds or even thousands of dollars on their tax liabilities. With the stakes this high and with influence from services and apps available to help track refund status, initiating tax filings this season does not have to be overwhelming.
Every tax season may carry its own unique challenges, yet with the right preparation, support, and awareness, taxpayers have the opportunity to maximize their returns and navigate the filing maze with much more confidence.