When does tax filing season start?

A new year can mean many new, exciting things. But it also means that tax season is just around the corner.

Soon Americans will have to do the yearly task of filing their tax returns for the previous year. For some, it’s a walk in the park, but for many others, it can be overwhelming and stressful.

The tax code for 2025 has some changes that are noteworthy for Americans that could impact the size of their tax refund, and possibly the size of their headache.

Here is what you need to know about the 2025 tax filing season.

When does the 2025 tax season start?

The federal tax collector typically begins accepting and processing tax returns for the prior calendar year in late January, though it hasn’t yet announced when it will start handling returns for 2024.

But that does not mean you can’t get started on your tax filing now. The Internal Revenue Service opens up its tax software before the start of tax season to allow people to begin preparing their returns. The IRS has also published a list of tips to help make the tax filing process easier.

When is the 2025 tax deadline?

According to the IRS, this year’s deadline will fall on the traditional date of April 15 and for those living outside the USA, it will be June 16th.

What changes are in place for the 2025 tax code?

In 2025 taxpayers who have received more than $5,000 through online marketplaces or payment apps like Venmo, Zelle, Google Wallet, or other services will get a new form called the 1099-K.

According to the IRS, the form is only sent to people who use the payment apps for selling goods or providing services.

“However, it could also include casual sellers who sold personal stuff like clothing, furniture and other household items that they paid more than they sold it for,” the IRS said.

What is the deadline for filing an extension?

The IRS says the deadline for filing an extension is April 15^th, if you live abroad would be June 16^th. That gives taxpayers until Oct. 15^th to file without penalties, but taxpayers must still pay any taxes owed by the April 15^th deadline as the extension only applies to filing a tax return.

For people affected by natural disasters, the extension is automatically given.

How can I request an extension for a tax return?

Extension requests can be made through the IRS at no charge. The IRS will ask for basic information like your name, address, Social Security number, estimated tax liability, and payment if you owe anything. We do ask for the extension until October 15^th for all our clients.

What happens if I miss the tax deadline?

For people who forget or miss the deadline altogether, the standard penalty is 5% of the tax due for every month the return is late, up to 25% of the unpaid balance.

A smaller penalty of 0.5% is added if you file a return but fail to pay any taxes you owe, or if you get an extension on your return but fail to pay your owed taxes.

How many people file their taxes every year?

More than 163 million tax returns were received in 2024, a 0.9% increase compared to 2023, according to the Internal Revenue Service.

How soon can I expect a refund?

According to the IRS, taxpayers who are eligible for refunds typically receive them within 21 days of filing if they use direct deposit, though it can take up to eight weeks.

There are several things that can delay refunds however, including items that require additional review by the IRS. Those taxpayers who claim the Earned Income Tax Credit or the Additional Child Tax Credit cannot receive a refund until mid-February at the earliest, as the agency has to give additional scrutiny to those returns.

Are there any noteworthy changes to tax returns in 2025?

One big change coming in 2025 will be the issuance of a form called Form 1099-K for taxpayers who received $5,000 or more through online marketplaces or payment apps like Venmo, Zelle, Google Wallet and other services.

According to the IRS, all income received through such sites is taxable, whether or not it hits the $5,000 threshold, and taxpayers will need to report that income whether or not they received the form. More information can be found on the IRS’ website.

Please do not hesitate to contact us for detailed information. US Tax Consultants