Get Ready for the 2025 Tax Season: What You Need to Know
The Internal Revenue Service (IRS) has announced that the 2025 tax season will begin on January 27, and this year, more taxpayers will have access to Direct File, a free tax filing program. The program, which launched in 2024, will be available to eligible taxpayers in 25 states, including 12 states from the 2024 pilot and 13 new states.
Who is Eligible for Direct File?
According to the U.S. Department of the Treasury, over 30 million taxpayers across the 25 participating states will be eligible to use Direct File in 2025. To check your eligibility, you can visit the IRS website. Note that you must have lived in a participating state for the entirety of 2024 to be eligible.
New Features and Improvements
This season, Direct File will offer several new features to make tax returns “quicker and easier,” according to IRS Commissioner Danny Werfel. The program will now support interest income above $1,500, pension and annuity income, and Alaska Permanent Fund Dividends. Additionally, Direct File will accept more tax breaks, including the child and dependent care credit, premium tax credit for Marketplace insurance, and the credit for elderly or disabled and retirement saver’s credit.
Automated Data Import
Starting this season, filers can automatically import data from their IRS account, including personal data, an identity protection pin, and some details from Form W-2. This feature is designed to simplify the filing process and reduce errors.
Other Free Tax Filing Options
In addition to Direct File, most taxpayers also qualify for IRS Free File, which offers free guided tax prep through private software partners. The program opened on January 10, and eligible taxpayers can start e-filing returns prepared by Free File on January 27. You are eligible for IRS Free File if your 2023 adjusted gross income was $79,000 or less.
Other Resources
For free tax preparation, many filers are also eligible for programs such as Volunteer Income Tax Assistance, Tax Counseling for the Elderly, and MilTax. These programs offer free tax help and guidance to eligible taxpayers.
Stay Informed
Stay up-to-date with the latest tax news and updates by visiting the IRS website or signing up for free newsletters. With the 2025 tax season just around the corner, it’s essential to stay informed and take advantage of the resources available to you.
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