As the 2025 tax season gets underway, millions of Americans are preparing to file their returns. The IRS has made several key changes this year, including inflation-adjusted tax brackets and an increase in the standard deduction, which could help many people save money. Here’s what you need to know to stay on top of your tax obligations and avoid any last-minute surprises.
When Does Tax Season Start?
The IRS will officially start accepting and processing 2024 tax year returns on Monday, January 27, 2025. With over 140 million tax returns expected to be filed, taxpayers are encouraged to get started early, especially if they anticipate a refund. The general deadline for filing federal tax returns is April 15, 2025, but those who need extra time can request an extension until October 15.
However, it’s important to note that any taxes owed must be paid by April 15 to avoid penalties and interest.
What’s New This Year?
The IRS has made adjustments to several key tax provisions to help ease the burden of inflation. These changes could mean a bigger refund or lower tax bill for many Americans:
- Higher Standard Deduction: The standard deduction has increased to $15,000 for single filers and $30,000 for married couples filing jointly. This increase allows taxpayers to deduct more from their taxable income, potentially reducing the amount of taxes they owe.
- Adjusted Tax Brackets: The income levels for all tax brackets have been adjusted for inflation. For example, the top tax rate of 37% now applies to individuals earning more than $626,350 and married couples earning over $751,600. Other tax brackets have also been adjusted, which could lower the overall tax burden for many filers.
Key Tax Deadlines to Keep in Mind
Missing important tax deadlines can result in costly penalties, so be sure to mark these dates on your calendar:
- January 27: IRS begins accepting returns.
- April 15: Deadline for filing individual tax returns.
- June 16: Second-quarter estimated tax payments due.
- October 15: Deadline for those who filed for an extension.
Tips to Maximize Your Refund
To get the most out of your return, consider the following tips:
- File Early: Filing as soon as possible can help you avoid delays, especially if you’re expecting a refund.
- Double-Check Deductions and Credits: Many taxpayers overlook valuable deductions and credits that can reduce their tax bill or increase their refund. Make sure to check for education credits, home office deductions, and child tax credits.
- Use Free Resources: The IRS offers free online tools to help you file accurately, and many low- to moderate-income taxpayers qualify for free tax preparation assistance.
Final Thoughts
With the 2025 tax season officially underway, staying informed about these changes and deadlines is crucial. Whether you’re filing on your own or working with a professional, preparing early can help you avoid headaches and maximize your return.