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The 2025 tax season starts Jan. 27, with Tax Day on April 15. Taxpayers can request extensions until Oct. 15 but must pay owed taxes on time. Refunds typically arrive within 21 days.
2025 tax filing season: Make sure to organize your tax documents
UPDATED: Jan 31, 2025 00:00 IST
As the 2025 tax season is officially underway, it's important to organize your tax filing documents. Keep these important deadlines and key points in mind to ensure a smooth and timely filing process. Here are key deadlines and important points to remember:
When does the 2025 tax season start?
The Internal Revenue Service (IRS) began accepting and processing 2024 federal tax returns on Monday, January 27, 2025.
Employers are required to send out W-2 forms by January 31, 2025, so keep an eye on your mailbox. If you receive income that isn't from an employer, you may receive a 1099 form, which reports non-employee compensation and other taxable income.
New for 2025
Taxpayers who received more than $5,000 in payments for goods and services through online marketplaces or payment apps in 2024 should expect to receive a Form 1099-K.
When is Tax Day 2025?
The federal tax filing deadline, known as Tax Day, falls on Tuesday, April 15, 2025.
Your return is considered on time if it is:
Properly addressed, postmarked, and deposited in the mail by the due date, or Filed electronically before midnight in your time zone. Filing electronically is faster and helps taxpayers receive refunds more quickly.Late Filing Penalties
Failing to file your tax return on time can result in penalties: The failure-to-file penalty is 5% of unpaid taxes per month, up to 25% of the unpaid balance. The IRS also charges interest on unpaid taxes and penalties.Last Day to Contribute to Retirement and Health Savings Accounts
For individual tax filers, April 15, 2025, is also the deadline to make 2024 contributions to an:
Individual Retirement Account (IRA) Health Savings Account (HSA) How to File a Tax ExtensionIf you need more time to file your taxes, you can request an extension by April 15, 2025. This will give you until October 15, 2025, to file without penalties. A filing extension does not extend your payment deadline. Any taxes owed must be paid by April 15 to avoid penalties and interest.
How to Request an Extension
The IRS provides three ways to file an extension:
Pay online and check the box – If you make a payment using an IRS online payment option and select that it is for an extension, you don’t need to file a separate extension form. You’ll receive a confirmation number for your records. Use Free File – The IRS Free File program allows taxpayers to electronically request an automatic tax-filing extension at no cost. Request an extension by mail – File Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) by mail, through an IRS e-filing partner, or with the help of a tax professional.Automatic extensions for disaster victims
In certain natural disaster situations, the IRS automatically extends tax deadlines. For example, taxpayers affected by the Los Angeles-area wildfires now have until October 15, 2025, to file federal individual and business tax returns and make tax payments.
When will I receive my tax refund?
The IRS typically issues tax refunds within 21 days for those who file electronically and choose direct deposit. Paper returns take longer to process.
2024 Refund Data
According to IRS data, the average federal tax refund in 2024 was $3,138.
By staying aware of these deadlines and filing on time, taxpayers can avoid penalties and receive their refunds as quickly as possible.
(Source: IRS)
Published By:
indiatodayglobal
Published On:
Jan 31, 2025
