Don't Mess With Taxes

That last Monday in January is when the Internal Revenue Service will start processing all 2024 tax year returns, including those filed earlier by taxpayers who qualified to use the already open Free File program.  

Photo by Nataliya Vaitkevich

It’s official. Tax season 2025 starts Monday, Jan. 27.

The Internal Revenue Service says it expects more than 140 million individual 2024 tax year returns to be filed by the April 15 deadline.

IRS Commissioner Danny Werfel, who could be overseeing his final filing season if incoming president Donald J. Trump follows through on his plans for the agency, says the agency is ready.

“This year, we are prepared to deliver another successful filing season and build on the accomplishments of the last two years in several critical areas,” Werfel said during a press conference Friday, Jan. 10, in announcing the start of the 2025 tax season.

Improving IRS filing season offerings: Werfel cited IRS modernization efforts and plans to expand those in 2025.

Among the planned improvements are increasing capability of the IRS data import tool, updating the “Where’s My Refund?” tool, allowing more access to tax forms on mobile devices, and covering more types of tax situations in Direct File, the agency’s direct, online, free tax preparation and efiling program.

Improving customer service also is a perennial IRS goal.

The agency said taxpayer assistance efforts over the past two filing seasons were at roughly 85 percent. Wait times, which is a constant filer complaint, averaged less than 5 minutes on the main phone lines.

Taxpayer Assistance Centers across the United States, where taxpayers can make appointments to get face-to-face help from IRS representatives, also saw an increased number of visitors.

Based the on IRS’ current plan and funding levels, Werfel said the agency will work to provide similar levels of performance in these key service areas this filing season.

“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,” added Werfel.

Free File already operating: Millions of taxpayers are getting a tax season 2025 head start. They are eligible to use tax software available via the IRS/Free File Alliance’s annual Free File Program.

The no-cost, online program, now in its 23rd year, opened on Friday, Jan. 10.

This year, Free File can be used by taxpayers whose adjusted gross income, regardless of filing status, is $84,000 or less. Eight tax software companies are participating.

If your income exceeds this year’s income threshold, check out Free File’s Fillable Forms option. It also will be available on Jan. 27.

Direct Files is back and bigger: Direct File, the IRS’ own free tax prep and filing program, is expanding this year, both in the number of states where it will be available and the types of tax situations it will cover.

It, too, will be available to eligible taxpayers on Jan. 27.

After a successful 2024 season in which taxpayers in 12 states used the pilot program, Direct File has added features and will be available to certain taxpayers this year in 25 states.

Yes, 25. In making the tax season opening the IRS slipped in the Prairie State as the latest Direct File participating jurisdiction. That more than doubles last year’s dozen states that were part of the pilot program.

The Direct File states are —

The Treasury Department estimates that more than 30 million taxpayers will be eligible to use Direct File across these 25 states.

New Direct File options: A data import tool is a new Direct File feature this filing season. Similar to those found in commercial tax software programs, this import option will les taxpayers opt-in to automatically import data from their IRS account. This will include personal information, the taxpayer’s Identity Protection Personal Identification Number (IP PIN), and some information from the taxpayer’s W-2.

Also new this year is a Direct File chat bot 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.

Direct File also covers more tax situations. During the pilot, filers could use the program if they claimed 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

Direct File this year also will support taxpayers claiming deductions for Health Savings Accounts.

Other free tax-filing options: While Free File and Direct File relies on taxpayers who are comfortable using tax software, some taxpayers still want a more personalized tax filing experience.

Many of them also cannot afford to hire a tax professional for in-person tax filing guidance. They may, however, be able to get such help for free from other sources, notably Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) for civilians, and MilTax for U.S. service personnel.

VITA and TCE operations are staffed by volunteers who are trained and certified by the IRS. The nationwide sites are sponsored by community groups. They focus on helping working families, the elderly, the disabled, and people who speak limited English. VITA and TCE sites usually are found in libraries, schools, community centers, and other public accommodations that are easily reachable and accessible.

You can locate the VITA or TCE site nearest you by using the IRS' VITA Locator Tool or calling toll-free (800) 906-9887. Most TCE sites are operated by the AARP Foundation's Tax Aide program. To locate the nearest AARP TCE Tax-Aide nearest you, use the AARP Site Locator Tool, which is updated regularly from the start of tax season through April. Or you can call, again toll-free, (888) 227-7669. Mobile device users can download the IRS2Go app, which also will help you find a site near you.

MilTax, a Department of Defense program,  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.

That’s a lot of tax filing options, and just a couple of weeks — unless you’re already Free Filing — to at least get started on our taxes.

The IRS says it is ready. Are you? Me neither, at least not completely. But I have confidence in all my readers of the ol’ blog. That’s why, in a changes of pace and tradition, this weekend’s Saturday Shout Out goes to all y’all!

Here’s to a smooth 2025 tax filing season.

You also might find these items of interest:

• Free File 2025 is open with 8 familiar software options
• IRS will accept e-filed business tax returns on Jan. 15
• Mark these key federal tax dates on your 2025 calendar
• 25 states will participate in IRS’ enhanced 2025 Direct File

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