American citizens can start filing their tax returns on Jan. 27, according to the U.S. Internal Revenue Service (IRS), which also mentioned that taxpayers in 25 states can access the Direct File free tax filing program.
“The IRS expects more than 140 million individual tax returns for tax year 2024 to be filed ahead of the Tuesday, April 15 federal deadline,” said a Jan. 10 statement from the agency.
On Friday, the IRS announced tax relief for individuals and businesses who are victims of the California wildfires that began on Jan. 7. As part of the relief, various tax filing and payment deadlines between Jan. 7 and Oct. 15 have now been postponed to Oct. 15. This includes the April 15 deadline for filing tax year 2024 returns and quarterly estimated taxes due on Jan. 15, among others.
The IRS said that its Direct File service is set to be available starting Jan. 27. In addition, the Free File program—another free option to prepare and file taxes online—has been made available to taxpayers since Friday.
The difference between the two is that Direct File is offered by the IRS directly, while Free File is a partnership between the agency and tax service providers.
In its pilot last year, Direct File was made available to taxpayers in 12 states, which has been bumped to 25 states for this filing season.
Last year, Direct File supported the following claims—Earned Income Tax Credit, Child Tax Credit, and Credit for Other Dependents. In the 2025 filing season, four more claims will be supported—Child and Dependent Care Credit, Premium Tax Credit, Credit for the Elderly and Disabled, and Retirement Savings Contribution Credits.
More than 30 million taxpayers are expected to be eligible to use Direct File this year.
Last month, the program came under criticism as 29 House Republicans wrote a letter to President-elect Donald Trump, asking him to end the program, and to do it on the first day in office.
“The program’s creation and ongoing expansion pose a threat to taxpayers’ freedom from government overreach,” they wrote.
Through Direct File, the IRS “asserts itself as the tax assessor, collector, preparer, and enforcer—all in one.” This is “deeply concerning and a clear conflict of interest,” said the lawmakers.
As for the Free File program, the service is aimed at taxpayers with an adjusted gross income (AGI) of $84,000 or lower. AGI is the total taxable annual income of an individual minus deductions including certain IRA contributions and student loan interest.
Another free filing option for taxpayers is “MilTax” run by the Department of Defense for military personnel and some veterans. There is no income limit for this option.
Some taxpayers may also qualify for free tax help through the agency’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.
VITA is available for taxpayers making $67,000 per year or less, individuals with disabilities, and those who speak minimal English. TCE is aimed at helping taxpayers aged 60 and above. The service specializes in issues central to senior citizens, like retirement and pensions.
“More than half of all tax returns are expected to be filed this year with the help of a tax professional,” the agency said. “The IRS urges people to use a trusted tax pro to avoid potential scams and schemes.”
IRS Customer Service
According to the IRS, the 2025 filing season “will feature expanded and enhanced tools to help taxpayers as a result of the agency’s historic modernization efforts.”
Some of the service improvements implemented for the 2025 filing season include more functionality to the IRS Individual Online Account, alerts about new scams, redesigned notices, and virtual assistants that help with issues like tax refunds.
“The IRS is once again working to provide taxpayers expanded help in-person through more hours at Taxpayer Assistance Centers nationwide. The IRS also will be focused on continuing high levels of service on its main taxpayer phone lines, with a goal of up to 85 percent level of service,” the agency said.
In June, the Treasury Department said the IRS cut down phone wait times for customers in filing season 2023 from 28 to 3 minutes.
The IRS said it maintained this performance in filing season 2024 as well, with taxpayers waiting an average of just over three minutes. In addition, the IRS handled 9 million calls, up from 7.7 million in the previous year.
However, some lawmakers are pushing for the IRS to improve taxpayer service. In October 2024, Sens. Mark R. Warner (D-Va.) and Bill Cassidy (R-La.) introduced the “Improving IRS Customer Service Act.”
The bill seeks to establish an online dashboard that would inform taxpayers about backlogs and wait times. It aims to expand people’s access to information regarding refunds and requires the IRS to improve its callback technology.
“It should be easy for taxpayers to get the information they need from the IRS. Not every interaction with them has to be miserable,” Cassidy said in an Oct. 3, 2024, statement. “We can streamline the process and give Americans the transparency they expect.”
From The Epoch Times