IRS announces 2025 tax season start: Key details you need to know

4 hours ago

The IRS will begin the 2025 tax season on January 27, with an April 15 deadline. Over 140 million returns are expected, alongside expanded free filing options, tools, and taxpayer support programs.

IRS launches 2025 tax season

IRS launches 2025 tax season with new tools and options (AP Photo)

India Today Global Desk

UPDATED: Jan 11, 2025 21:05 IST

The Internal Revenue Service (IRS) has officially announced that the 2025 tax filing season will begin on Monday, January 27, 2025.

The federal deadline for filing is Tuesday, April 15, 2025. This year’s filing season includes enhanced tools and resources aimed at improving the taxpayer experience, reflecting ongoing modernization efforts.

The IRS expects more than 140 million tax returns to be filed by the April 15 tax deadline.

The announcement comes with the agency in the midst of a massive overhaul, attempting to improve its technology and customer service processes with tens of billions of dollars allocated to the agency through Democrats’ Inflation Reduction Act, signed into law in August 2022.

The IRS said it is expanding its program that allows people to file their taxes directly with the agency for free.

IRS Commissioner Daniel Werfel also said the IRS is working to improve public awareness of the Earned Income Tax Credit, stating that nearly 1 in 5 eligible taxpayers don’t claim it because they don’t know about it or realize they qualify.

Here are the key IRS points to keep in mind:

Key Dates and Filing Options
Start Date: January 27, 2025
Federal Deadline: April 15, 2025
Tax Returns Expected: Over 140 million individual returns for tax year 2024.

The IRS encourages taxpayers to file electronically for faster processing and to use trusted tax professionals to avoid scams.

Enhanced Tools for 2025

The IRS has introduced new tools and expanded features, including:

Direct File Expansion: Available in 25 states this year, up from 12 last year. Taxpayers can file directly with the IRS for free and access features like data import, live chat in English and Spanish, and support for more tax credits.

Mobile Accessibility: Taxpayers can now access 67 tax forms on mobile devices with save-and-draft capabilities.

Scam Alerts: A new banner in the IRS Individual Online Account warns taxpayers about potential scams.

Virtual Assistants: Voicebots and chatbots now provide enhanced support, including refund updates and answers to common questions.

Improved Services and Features

The IRS aims to maintain high service levels achieved in recent years, with:

85% service success rates on phone lines. Average wait times of under 5 minutes for assistance. Expanded hours at Taxpayer Assistance Centers nationwide. The redesigned IRS notices and improved digital tools will help taxpayers interact more effectively with the agency.

Filing Options for Taxpayers

IRS Free File: Available to taxpayers with an Adjusted Gross Income (AGI) of $84,000 or less, Free File partners provide guided tax preparation software.

Volunteer Income Tax Assistance (VITA): Free services for eligible individuals, including the elderly and those with limited English proficiency.

MilTax: A Department of Defense program offering free federal and state tax return preparation for military members and veterans.

New Features in Direct File
For 2025, Direct File covers additional tax situations, including:

Child and Dependent Care Credit. Premium Tax Credit. Deductions for Health Savings Accounts and Retirement Contributions. Tips for a Smooth Tax Season

Use “Where’s My Refund?”:

Most refunds are issued within 21 days of e-filing.
Opt for Direct Deposit: It’s faster and safer than paper checks.
Avoid Unethical Preparers: Use the IRS Directory of Federal Tax Return Preparers to find trusted professionals.

Published By:

indiatodayglobal

Published On:

Jan 11, 2025

Read Full Article at Source