With the new year now in full swing, most Americans have their sights firmly set on the fast-approaching new tax season. Just recently, the IRS announced that the agency will begin accepting 2024 tax-year federal returns on January 27, 2025. That makes it a very critical period when taxpayers gear up and ready their financial documents to prepare and file their returns.
Key dates and deadlines
The IRS has announced some key dates for the 2024 tax season. January 27, 2025, is the earliest the IRS will begin accepting and processing individual income tax returns for the year 2024. Most taxpayers must file by the filing deadline of April 15, 2025; however, those living in Maine and Massachusetts have until April 17 due to local holidays.
The IRS grants an automatic six-month extension of time to file for the taxpayer who cannot meet the April deadline. However, it should be noted that an extension of time to file applies only to the filing and not to payment; all taxes due are still due by April 15th, and late payments may be subject to penalty.
Expanded filing options
Through this year, the IRS has been continuing to expand services available through its extension of the Direct File program. Eligible taxpayers in 25 states will now be able to directly file absolutely free with the IRS in a new service. This is one that further simplifies the process with less dependency on commercial tax-prep services. A new filing window for this year is set officially open for January 27. This is because it coincides with the official tax season opening date.
This program has been improved from last year’s pilot version that was in only 12 states. Among the new features is a data import tool for users to be able to auto-populate some information on their IRS account, including biographical data and W-2 information. It hopes that this enhancement would make the process of filing very significantly easier.
IRS Commissioner Danny Werfel on new technology that’s going to better the taxpayer experience this filing season, including new tools: online chatbots and voicebots, which will help taxpayers more quickly with their questions. The changes reflect the IRS’ efforts to modernize its services and improve customer support.
Taxpayers will find it’s easier than ever to access their IRS Individual Online Accounts. Several new features give taxpayers the ability to view their adjusted gross income data and sign forms electronically, making it easier for taxpayers to take action related to their tax information. For those who were affected by natural disasters can file for extensions, read this article to know more, IRS warning over tax filing for disaster situations – remember the altered deadline
Expected tax returns and refunds
The IRS anticipates receiving almost 140 million individual tax returns during this filing season. A large portion of these have, in the past, generated refunds; last year, about two-thirds of filers received an average refund of more than $3,100. The IRS said most refunds are expected to be issued within 21 days of the receipt of an e-filed return.
Taxpayers who are due a refund are encouraged to file as soon as possible after January 27. The quickest way taxpayers will receive a refund is filing electronically and having the refund deposited directly into their bank accounts. Taxpayers claiming credits, particularly the Earned Income Tax Credit (EITC), by law, the IRS will not issue EITC-related refunds until mid-February.
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