What to know about filing taxes, refunds for tax season 2025
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The Internal Revenue Service starts tax season 2025 Monday with some changes and an expansion of the Direct File program.
Why it matters: The free online tax-filing program is reshaping how millions of Americans do their taxes.
- The IRS said the 2025 tax filing season reflects continued progress to "modernize" and brings "new tools and features to help taxpayers."
By the numbers: 37% of taxpayers depend on their refund to make ends meet, including 50% of millennials, according to a Intuit Credit Karma survey of 1,000 adults.
- A third of American taxpayers say they would pay a fee, or plan to pay a fee, to access their tax refund early.
- Nearly half (47%) plan to use their refund to pay down debt, including 59% of millennials, the online survey conducted by Qualtrics found.
When does the IRS start accepting returns
State of play: Jan. 27 is the first day of the IRS tax filing season.
- It's two days earlier than last year, when tax season started Jan. 29.
Tax refund 2025: Lower taxes, bigger refunds
The big picture: Annual tax adjustments — including new tax brackets, an increased standard deduction and other tax inflation adjustments — will lower income taxes for many Americans this year.
- 34% of Americans believe they'll get more money in tax refunds in 2025 than they did in 2024, a Talker Research survey commissioned by TurboTax found.
Direct File 2025
What we're watching: The Treasury Department estimates that more than 30 million taxpayers will be eligible to use the expanding Direct File program across the 25 states where it's available.
- Direct File is mobile friendly; works on smartphones, tablets and computers; and is available in English and Spanish.
- There's a new chatbot to guide users through the eligibility checker, the IRS said.
Direct File will be available in the same 12 states it was available in 2024: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.
- It'll also be available in 13 new states: Alaska, Connecticut, Idaho, Illinois, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania and Wisconsin.
Flashback: During the 2024 filing season, more than 3 million users checked to see if they were eligible to use the site, and more than 140,000 taxpayers used Direct File, surpassing the agency's goal of 100,000.
- Direct File users saved an estimated $5.6 million in tax prep fees, the Treasury Department said.
What's next: President Trump's nominee for Treasury secretary, Scott Bessent, pledged during his confirmation hearings that the program would remain available this year, but did not commit beyond that.
IRS tax deadline 2025: When are taxes due
April 15 is the federal tax filing deadline for most taxpayers to file their personal federal tax returns, pay any taxes owed or request an extension.
- The IRS said it expects more than 140 million individual tax returns to be filed by the deadline.
- April 15 is also the deadline to file for a six-month extension.
Where's My Refund tool and IRS refund schedule
Follow the money: The IRS said it issues most refunds in less than 21 calendar days. Taxpayers can use the Where's My Refund? tool to check the status of their 2024 income tax refund within 24 hours of e-filing.
- For paper returns, plan to wait about four weeks for an update on your refund.
- The IRS said it will offer voicebot services to all taxpayers who call the agency for refund information.
IRS $1,400 stimulus checks
Zoom out: The IRS is also sending out $2.4 billion in stimulus payments to approximately 1 million eligible taxpayers who didn't receive 2021 COVID recovery relief payments. Most eligible taxpayers will get the payments automatically.
- The special payments are as high as $1,400 per individual and should arrive by late January in most cases, the IRS said in a news release.
- The IRS advised taxpayers who have not filed 2021 tax returns that "they may be eligible for a refund if they file and claim the Recovery Rebate Credit by the April 15, 2025, deadline."
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