The IRS just announced when you can start filing your taxes. Here’s what to expect this tax season.
Yahoo Finance·2026-01-08 16:37

Core Insights - The IRS is preparing for the tax-filing season, which runs from January 26 to April 15, 2025, expecting to process 164 million returns [6] - The new tax laws under Trump's administration are anticipated to result in higher refunds for taxpayers, with average refunds potentially increasing by up to $1,000 [7][8] - Staffing cuts at the IRS, which have reduced the workforce by approximately 25%, raise concerns about the agency's ability to manage the upcoming tax season effectively [3][4][14] Tax Filing and Refunds - The final day to pay owed income tax and file returns is April 15, with options for installment plans available for those unable to pay in full [1] - Almost two-thirds of filers received refunds last year, averaging $3,167, with expectations for higher refunds this year due to new tax breaks [7] - The child tax credit is increasing to $2,200 per child, and the standard deduction will rise to $15,750 for individuals and $31,500 for married couples [8] IRS Operations and Challenges - The IRS has updated its information systems to accommodate new tax laws, but concerns remain about operational efficiency due to reduced staffing [2][3] - The agency is facing customer service challenges, with a nearly 20% reduction in staff handling return processing and customer service [14][15] - The IRS is phasing out paper refund checks, encouraging electronic filing and direct deposit to expedite refunds [11][13] Tax Preparation Options - The IRS Direct File platform has been suspended, limiting free tax-preparation options, while the IRS Free File program remains available through partnerships with tax-software companies [15][16] - Taxpayers may need to pay an average of $290 for tax preparation services, depending on the complexity of their returns [16] Government Funding and Impact - The federal government is funded only until the end of January, raising concerns about a potential shutdown that could affect IRS operations [17] - Despite potential government shutdowns, the IRS is expected to continue processing tax returns, although delays may occur for complex cases [18]

The IRS just announced when you can start filing your taxes. Here’s what to expect this tax season. - Reportify