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The Internal Revenue Service (IRS) officially kicked off tax season 2025 on Monday, January 27, bringing new features and an expanded Direct File program designed to simplify tax filing for millions of Americans.
With tax season now underway, here’s what you need to know about the latest updates, deadlines, and tools available to taxpayers.
Why This Year’s Tax Season Matters
The IRS has emphasized its ongoing efforts to modernize the tax filing process. The expanded Direct File program is expected to reshape how Americans handle their taxes by offering a more accessible and user-friendly system.
“The 2025 tax filing season reflects continued progress to modernize and brings new tools and features to help taxpayers,” the IRS said in a statement.
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According to an Intuit Credit Karma survey, 37% of taxpayers rely on their refunds to meet financial needs, with this figure rising to 50% for millennials. Additionally, nearly half of taxpayers plan to use their refunds to pay off debts.
When Does Tax Season Start?
The IRS began accepting returns on January 27, two days earlier than the 2024 tax season start date. This earlier start gives taxpayers more time to file and access their refunds.
What’s New in Tax Season 2025?
Lower Taxes and Higher Refunds Expected
Changes to tax brackets, increases in the standard deduction, and other inflation-related adjustments mean that many Americans will owe less in taxes this year.
- A Talker Research survey, commissioned by TurboTax, found that 34% of Americans expect to receive larger refunds in 2025 compared to last year.
Expanded Direct File Program
The Direct File program has been significantly expanded for 2025.
- The program is now available in 25 states, up from 12 in 2024.
- It works on smartphones, tablets, and computers and is available in English and Spanish.
- A new chatbot has been introduced to help users check eligibility and navigate the system.
The Treasury Department estimates that 30 million taxpayers will be eligible to use Direct File this year.
States Newly Added in 2025: Alaska, Connecticut, Idaho, Illinois, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin.
In 2024, the program had already seen success:
- 140,000 taxpayers used Direct File, surpassing the IRS’s goal of 100,000 users.
- Users saved an estimated $5.6 million in tax preparation fees.
IRS Deadlines and Tools for 2025
Key Deadlines
- April 15 is the federal deadline for filing personal tax returns, paying taxes owed, or requesting a six-month extension.
- The IRS expects more than 140 million individual returns to be filed by the deadline.
Refund Timeline
- Most refunds are issued within 21 days of filing.
- Taxpayers can track their refunds using the Where’s My Refund? tool, which provides updates within 24 hours of e-filing or four weeks for paper returns.
Voicebot Services
The IRS is introducing voicebot services to assist taxpayers who call for information about their refunds.
Additional Stimulus Payments
The IRS is also disbursing $2.4 billion in stimulus payments to around 1 million taxpayers who missed the 2021 COVID Recovery Relief payments.
- Eligible taxpayers could receive up to $1,400 per individual.
- Most payments will be sent automatically by late January.
For those who haven’t yet filed their 2021 tax returns, the IRS advises filing and claiming the Recovery Rebate Credit by April 15, 2025, to qualify for any remaining stimulus funds.
What’s Next?
While President Trump’s nominee for Treasury Secretary, Scott Bessent, has committed to keeping the Direct File program available in 2025, he hasn’t confirmed whether it will continue beyond this year.
As the tax season progresses, the IRS aims to simplify the filing process and provide essential financial relief to taxpayers. With expanded tools, adjusted tax rates, and faster processing times, 2025 promises to be a more streamlined experience for millions of Americans.
