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Tax season is here, and with it comes the important task of filing your taxes and tracking your refund. As of January 27, 2025, the IRS has opened its doors for individual filers. For many, this season is even more critical as nearly 40% of taxpayers are relying on their refunds to make ends meet. So, how can you stay informed about your IRS refund status, and what do you need to know before you file your taxes? Let’s break it down.
Key Points to Keep in Mind for Tax Season
This year, the filing process has been made easier with various free filing options available. More than 30 million taxpayers may qualify for the IRS Free File program, which offers free tax filing services for individuals with an adjusted gross income (AGI) of $84,000 or less. Additionally, Direct File has expanded to 25 states, allowing for a broader range of tax situations to be covered.
It's essential to understand that some filers, particularly those affected by natural disasters, may have extensions to file their returns. For example, victims of the California wildfires may have additional time to pay their taxes. Always check the IRS website for the latest updates and information related to filing extensions.
The Importance of Filing Correctly
When it comes to filing your tax return, accuracy is crucial. Missing forms can delay your refund, so it's wise to double-check that you have everything ready before you submit your return. Utilizing your prior-year tax return as a checklist can be a helpful way to ensure you have all the necessary documentation.
Many taxpayers are eager for their refunds, and tracking them has become a common practice. The IRS provides the "Where's My Refund?" app, which allows you to track the status of your refund in real-time. You can access this service via the IRS's website or through the IRS2Go mobile app. Just be prepared with your Social Security number, filing status, and the exact refund amount to get accurate information.
How Refund Tracking Works
Using the "Where's My Refund?" app is quite straightforward. You can expect to see the status of your return approximately 24 hours after e-filing. However, if you filed a paper return, it may take around four weeks for your information to be available. Generally, people who file electronically can expect their refunds within 21 days, while those who file paper returns might face longer wait times due to manual processing.
What Can Delay Your Refund?
Several factors can contribute to delays in processing your tax refund. Claiming credits such as the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) can delay your refund, as the IRS is legally required to hold these refunds until mid-February. Furthermore, issues like math errors, incorrect Social Security numbers, or discrepancies in names can trigger delays. Always take a moment to review your return thoroughly before submission to avoid these common pitfalls.
What to Expect for the 2025 Tax Brackets
While you file your 2024 taxes this season, it’s also important to be aware that the IRS has set new tax brackets for 2025. Adjustments have been made to account for inflation, which can affect your filing in the following year. The brackets are slightly higher this year, ensuring taxpayers are not pushed into higher tax bands without changes in their actual income.
In summary, as you embark on your tax filing journey this season, remember the importance of accuracy, take advantage of available resources such as free filing options and refund tracking tools, and stay abreast of any changes to tax laws that may affect you. By preparing ahead of time, you can ensure a smoother tax filing experience.
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