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By Robert Thorpe
Senior Editor
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Tax season 2025 starts January 27, and key filing and extension deadlines must be met to avoid penalties and ensure a smooth process.
Why It Matters
The Internal Revenue Service (IRS) has announced that the 2025 tax filing season will start on January 27, with the deadline for filing federal tax returns set for April 15, 2025. It expects more than 140 million individual tax returns for the tax year 2024 to be filed ahead of the April 15 federal deadline.
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Filing your taxes late can result in penalties and interest on unpaid taxes. There is a Failure to File penalty when you don't file your tax returns by the due date. It's 5 percent of unpaid taxes for each month or part of a month that a tax return is late, up to a maximum of 25 percent. And if a return is more than 60 days late, the minimum penalty increases. Filing on time helps avoid these financial consequences and ensures a smoother tax process.
What to Know
Below is a timeline of tax dates to keep in mind for the upcoming year:
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January 10: Free File opens. The IRS partners with software companies to provide taxpayers who meet certain income requirements with access to free tax preparation and filing software. Partnering companies include TaxSlayer, TaxAct and FreeTaxUSA.
January 15: Estimated tax payments due for the fourth quarter. This is the deadline to pay estimated taxes for income earned from September 1, 2024, through December 31, 2024. This typically applies to self-employed individuals and taxpayers whose withholding does not cover enough of their tax liability.
January 27: Tax filing season begins, and the IRS starts processing federal tax returns on this date. If you apply for certain tax credits, like the Earned Income Tax Credit or Additional Child Tax Credit, the agency will not issue your refund until at least mid-February, no matter how early you file. And the IRS' new free tax filing program, Direct File, will open for people in participating states, expanding its service to 25 states this year.
January 31: Form W-2 deadline. Employers must send W-2 forms to employees who worked for them in 2024 by this date. Additionally, certain information returns, such as the 1099-NEC and 1099-INT, must also be issued or mailed by January 31. Freelancers and others who earned interest income should expect these forms around this time.
April 15: Tax Day. This is the deadline for filing federal tax returns and paying any taxes owed. It's also the last day to submit a request for a tax extension using Form 4868. Even if you request an extension, you must pay any owed taxes by April 15 to avoid penalties and interest. It's also the deadline to make contributions to a health savings account (HSA) or individual retirement account (IRA) for the 2024 tax year. Estimated tax payments on income earned during the first quarter of 2025 (January 1 through March 31) are also due on April 15.
June 16: Estimated tax payments for the second quarter on income earned during the second quarter of the year (April 1 through May 31) are due. This date is also the deadline for taxpayers living or working outside the U.S. to file their federal tax returns.
September 15: Estimated tax payments on income earned during the third quarter of 2025 (June 1 through August 31) are due.
October 15: Tax extension deadline. If you filed for an extension by April 15, this is the final deadline to submit your tax return for the 2024 tax year. Missing this deadline will result in penalties.
December 31: 401(k) contributions deadline. This is typically the last day to make qualified contributions to employer-sponsored retirement plans, such as traditional or Roth 401(k)s, for the 2025 tax year. Required minimum distributions (RMDs) must be taken by this date if you're required to do so. Charitable donations must also be made by December 31 to be deductible on your 2025 tax return.
What People Are Saying
Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "While you can file for an extension of up to six months, the best advice is always to file as soon as possible. We all know time is money, and that's certainly true when it comes to tackling a delayed tax bill. The taxes you owe will begin to accrue interest for being past due after missing the deadline that will have to be paid. You could also face additional financial penalties. Contact the IRS, explain why you're filing late, and then move quickly to file your return."
Kevin Thompson, founder/CEO of 9i Capital Group, told Newsweek: "If you miss the filing deadline, don't panic. You can file Form 4868 to request an extension. Keep in mind, an extension to file is not an extension to pay any taxes owed. Be sure to pay the estimated amount to avoid additional penalties."
Alison Flores, manager at The Tax Institute at H&R Block, told Newsweek: "If you are not able to complete an accurate return for 2024 by the April 15 due date, consider filing an extension. The penalty for failing to file on time is up to 10 times higher than the penalty for failing to pay. However, keep in mind that filing for an extension does not excuse you from paying owed amounts. An extension gives you extra time to file, but not to pay. If you think or know you'll owe, you should estimate what you'll owe and pay the amount due when you file for an extension."
What Happens Next
Ahead of the April 15th deadline, keep yourself organized and mindful of the important dates mentioned above. Start collecting essential documents such as W-2s and 1099s well before the deadline. If you can, take advantage of the IRS Free File program or Direct File in states that offer it. If you need assistance, don't hesitate to reach out to a tax professional.
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