The 2025 tax-filing season will open on Jan. 27—the day in which the IRS will begin accepting and processing 2024 tax year returns, the agency said on Friday.
The IRS expects more than 140 million individual tax returns to be filed ahead of the April 15 federal deadline, with more than half of all tax returns filed this year with the assistance of a tax professional.
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There will be new tools and features to help taxpayers this filing season as part of the IRS’s modernization efforts.
“Since last tax season, the improvements include more access to tax account information from text and voice virtual assistants, expanded features on the IRS Individual Online Account, more access to dozens of tax forms through cellphones and tablets, and expanded alerts for scams and schemes that threaten taxpayers,” the IRS said in a Jan. 10 media release.
Direct File
Despite some lawmakers trying to get rid of it through legislation, the IRS said Friday that Direct File, which allows taxpayers to electronically file their federal income tax return directly with the IRS for free, will be available starting Jan. 27 to taxpayers in 25 states. Those states include:
- Alaska
- Arizona
- California
- Connecticut
- Florida
- Idaho
- Illinois
- Kansas
- Maine
- Maryland
- Massachusetts
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- Oregon
- Pennsylvania
- South Dakota
- Tennessee
- Texas
- Washington
- Wisconsin
- Wyoming
The Treasury Department estimates that more than 30 million taxpayers will be eligible to use Direct File across the 25 states.
Direct File is a web-based service that works on mobile phones, laptops, tablets, or desktop computers. The system guides taxpayers through a series of step-by-step questions to prepare their federal tax return. Once taxpayers have completed their federal tax return, the Direct File system automatically guides them to state tools to complete their state tax filings.
Direct File will include new features this year to make filing taxes quicker and easier, including a data import tool that will allow taxpayers to opt-in to automatically import data from their IRS account, such as personal information, the taxpayer’s identity protection personal identification number (IP PIN), and some information from the taxpayer’s W-2.
Taxpayers can try a new chatbot to help guide them through the eligibility checker. Live chat will again be available in English and Spanish, and users can opt into additional authentication and verification, which will allow customer service representatives to provide more information, the IRS said.
Direct File will also cover more tax situations this upcoming filing season. During last year’s pilot program, Direct File supported taxpayers claiming the Earned Income Tax Credit, Child Tax Credit, and Credit for Other Dependents. This year, Direct File will also cover taxpayers claiming the:
- Child and Dependent Care Credit
- Premium Tax Credit
- Credit for the Elderly and Disabled
- Retirement Savings Contribution Credits
In addition to covering taxpayers claiming the standard deduction and deductions for student loan interest and educator expenses, Direct File will now support taxpayers claiming deductions for health savings accounts.
Free File
Although the 2025 filing season doesn’t officially start until later this month, taxpayers have several options available now to get a head start on their taxes.
Starting today, almost everyone can e-file for free by using IRS Free File, available only on IRS.gov. Now in its 23rd year, Free File offers free tax preparation software from eight companies in the public-private partnership between the IRS and Free File Inc. As part of this partnership, tax preparation and filing software partners offer their online products to eligible taxpayers for free. To access these free tools, taxpayers must start from the IRS Free File page on IRS.gov.
This year, eight private-sector partners will provide online guided tax software products for taxpayers with an adjusted gross income (AGI) of $84,000 or less in 2024. Additionally, one partner will offer a product in Spanish.
IRS Free File providers will allow taxpayers to prepare and file their returns now and hold them until they can be electronically filed starting on Jan. 27. Several other tax preparation software companies offer a similar option.
In addition to Free File and Direct File, the IRS reminds taxpayers of other programs to help them file their tax returns, such as:
- Volunteer Income Tax Assistance/Tax Counseling for the Elderly: Taxpayers can find organizations in their community with IRS certified volunteers that provide free tax help for working families, the elderly, the disabled, and people who speak limited English.
- MilTax: A Department of Defense program, MilTax generally offers free return preparation and electronic filing software for federal income tax returns and up to three state income tax returns for all military members, and some veterans, with no income limit.
Other resources to help taxpayers
The past two filing seasons saw levels of service at roughly 85% and wait times averaging less than five minutes on the main IRS phone lines, as well as significant increases in the number of taxpayers served at Taxpayer Assistance Centers across the country. Based on the IRS’s current plan and funding levels, the agency said it will work to provide similar levels of performance on these key service metrics during the upcoming filing season.
“This has been a historic period of improvement for the IRS, and people will see additional tools and features to help them with filing their taxes this tax season,” IRS Commissioner Danny Werfel said in a statement. “These taxpayer-focused improvements we’ve done so far are important, but they are just the beginning of what the IRS needs to do. More can be done with continued investment in the nation’s tax system.”
The Get Ready page on IRS.gov highlights steps taxpayers can take now to streamline the filing process and the many resources available to interact with the IRS before, during, and after filing their federal tax return.
Among some of the other improvements taxpayers will see during the 2025 filing season include:
IRS Individual Online Account: The IRS continues to add more functionality to this tool for taxpayers. Individuals can create or access their IRS Online Account at Online account for individuals. With an IRS Online Account, people can:
- View key details from their most recent tax return, such as AGI.
- Request an IP PIN.
- Get account transcripts to include wage and income records.
- Sign tax forms like powers of attorney or tax information authorizations.
- View and edit language preferences and alternative media.
- Receive and view more than 200 IRS electronic notices.
- View, make, and cancel payments.
- Set up or change payment plans and check their balance.
To help protect people against emerging threats, there’s a new banner on the Online Account homepage that alerts taxpayers of potential scams and schemes, along with a link to their Digital Notices and Letters page to view correspondence sent to them from the IRS, the agency said. The feature helps to educate taxpayers on common scams and fraudulent efforts to steal taxpayer information and provide taxpayers with more ability to validate the legitimacy of IRS communications.
Redesigned notices: The IRS redesigned 284 notices in 2024, exceeding its goal of 200 notices. (Note: 200 notices were redesigned and deployed in 2024, and the 84 additional redesigned notices are in line to be deployed in 2025, according to the IRS.). All notices will be added to Individual Online Account so taxpayers receiving a specific letter can see them.
Mobile-adaptive tax forms: Taxpayers can now access 67 forms on cellphones and tablets. The most recent forms feature “save and draft” capabilities, which allow the taxpayer to start a form, save it, and return to it later. The addition of save and draft allows for future capabilities, including the ability for multiple spouses to sign a form.
Virtual assistants to help with refunds and other questions: Whether a taxpayer uses an online tool or calls the IRS, they will experience upgraded help features, the agency said. During the 2025 filing season, the IRS will offer voicebot services to all taxpayers calling the IRS for refund information. The voicebot is available in English and Spanish and, according to the IRS, has helped thousands of callers without the need to wait for the next available representative. Taxpayers will have to authenticate their identity to gain access to their refund information by providing select information from their tax return.
Last year the IRS began using online chatbots for various functions. These chatbots use either guided help through choice buttons or an open text box for a customized question. The chatbots use natural language processing and understanding to interpret the input from the taxpayer to provide an appropriate response. To launch the chatbot, the taxpayer simply clicks on the “Chat” button in the lower-right corner of the webpage. Currently taxpayers can use chatbots from eight webpages.
Where’s My Refund?: Most income tax refunds are issued in less than 21 calendar days, the IRS said, and taxpayers can use “Where’s My Refund?” to check the status of their 2024 refund within 24 hours of e-filing. Refund information is normally available after four weeks for taxpayers who filed a paper return. Information on “Where’s My Refund?” will update overnight so there’s no need to check the tool more than once a day, the agency said.
According to the IRS, the easiest, safest, and fastest way to receive a refund is to file electronically and select direct deposit. According to Treasury’s Bureau of the Fiscal Service, paper refund checks are 16 times more likely to have an issue, like the check being lost, misdirected, stolen, or uncashed. People should check the FDIC and National Credit Union Administration websites if they don’t have a bank account. Veterans can use the Veterans Benefits Banking Program to find participating financial institutions.
The IRS also notes that as of Jan. 1, 2025, people are no longer able to buy paper Series I savings bonds with their tax refund. Instead, Series I bonds are available in electronic format in TreasuryDirect.
Pick a trusted tax professional
More than half of taxpayers turn to a tax professional for help filing a tax return. While most tax preparers deliver exceptional and professional service, selecting the wrong preparer can lead to financial trouble.
Taxpayers should review the tips for choosing a tax preparer and learn how to avoid unethical “ghost” return preparers. Taxpayers can also use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to find trusted professionals. The IRS also reminds taxpayers that choosing someone affiliated with a recognized national tax association is always a good option.
Tax professionals accepted into the IRS electronic filing program are authorized IRS e-file providers, qualified to prepare, transmit, and process e-filed tax returns.
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Tags: Income Tax, IRS, Taxes
