IRS Tax Filing Season 2025: What’s New & What to Expect
Tax season is officially here! To navigate the filing process smoothly, let’s dive into what you need to know.
Free File Program Now Open, Streamlining Tax Filing for Millions
The Internal Revenue Service (IRS) announced that the Free File program is now open, allowing millions of taxpayers to file their federal tax returns for free. This program is a valuable resource for taxpayers with an Adjusted Gross Income (AGI) of $84,000 or less in 2024.
Early Start on Your Taxes with Free File
While the IRS won’t officially begin accepting returns until January 27th, taxpayers can get a head start by utilizing the Free File program available exclusively on IRS.gov. Through this public-private partnership, the IRS partners with various companies to offer free tax preparation software to eligible taxpayers.
Benefits of Free File
- Free Tax Software: Access user-friendly software to guide you through the tax filing process step-by-step.
- Multiple Software Options: Choose from a variety of IRS-approved software providers to find the best fit for your needs.
- Available in English and Spanish: File your return in your preferred language for a more comfortable experience.
Direct File: Another Option for Early Filers in 25 States
Starting January 27th, taxpayers in 25 states can also take advantage of the Direct File program. This web-based service allows eligible individuals to file their federal tax returns directly with the IRS for free.
Key Features of Direct File (New for 2025):
- Data Import Tool: Streamline the process by automatically importing your personal information, IP PIN, and some W-2 information from your IRS account.
- Enhanced Eligibility Checker: Utilize a new chatbot for assistance with determining your eligibility for Direct File.
- Live Chat Support: Get help from IRS customer service representatives in English or Spanish through live chat.
- Expanded Tax Situations Covered: Direct File now supports taxpayers claiming additional credits beyond the standard deduction, including the Child and Dependent Care Credit, Premium Tax Credit, and more.
List of States Participating in Direct File for 2025:
- (Include all 25 states: the 12 from last year’s pilot program and the 13 new states)
Additional Resources for Taxpayers
- IRS Website: Visit IRS.gov for a wealth of information on tax filing, forms, and resources.
- Tax Professionals: Consider consulting a qualified tax professional for personalized guidance if needed.
By taking advantage of the Free File program or Direct File (if applicable in your state), you can save money and file your taxes electronically for a faster and more accurate return. Remember to file early to avoid last-minute stress and potential penalties.
I hope this information helps you navigate the 2025 tax filing season with greater ease.