Overview
- The IRS began accepting 2025 returns on January 26, with most federal filings due April 15 and deadlines extended to April 17 in Maine and Massachusetts.
- Key changes under the 2025 law include a higher standard deduction ($15,750 single, $31,500 married filing jointly), an expanded SALT cap up to $40,000 for certain incomes, a child tax credit of $2,200 per qualifying child, a new senior deduction ($6,000 single or $12,000 joint), and new deductions for tips, overtime and up to $10,000 in qualifying auto‑loan interest.
- Treasury and analysts project larger average refunds this season—about $1,000 more per household on average—because many workers’ withholding was not fully updated for the new rules.
- Refunds tied to the EITC or the Additional Child Tax Credit are held until mid‑February under the PATH Act, with most of those direct‑deposit refunds available starting March 2 for returns without other issues, and taxpayers can track status via Where’s My Refund or the IRS2Go app.
- New compliance elements include Form 1099‑DA for digital‑asset transactions, 1099‑K issuance only when payments exceed $20,000 and 200 transactions on a platform, ITINs expiring after three years of non‑use, penalties for returned payments (generally $25 or 2%), and a new Schedule 1‑A to claim the added deductions, with Free File and VITA/TCE offering no‑cost help.