Tax Day 2025 is coming up quickly, with the federal filing date due April 15. In spite of continuing issues at the Internal Revenue Service (IRS), tax professionals confirm that returns are being processed and refunds are going out on time. Nevertheless, millions of Americans remain outstanding in their tax filings, and the IRS is down roughly 1.25 million returns from where they were at the same point last year. If you’re one of the many who have not yet filed their returns, here are some last-minute reminders and important facts to assist you in making your way through Tax Day 2025.
Key Deadlines and Extensions
The usual deadline for federal tax filing is still April 15, 2025. Exceptions are made for taxpayers who have been hit by natural disasters, like the recent California wildfires and Kentucky and West Virginia storms. If you live in a disaster area, you might be eligible for an automatic extension. The majority of states use the federal filing deadline, but some have varying due dates. It is best to check the IRS website for the latest information.
What to Do If You Haven’t Received Your W-2 Form
The W-2 form is needed in order to file your taxes because it lists your income and withholdings. If you have not yet received your W-2, reach out to your employer right away. Most employers now make their W-2 forms available digitally on employee portals. If your employer cannot be reached, you can notify the IRS about your employment status, and it will ask the employer for you to provide missing form. Should you fail to get it before the deadline, you can include your last 2024 payroll check to use as a placeholder when filling in Form 4852 for completing your return.
Methods for Lowering Your 2024 Taxable Income
There are still a couple of methods to reduce your taxable income for 2024 before the deadline of April 15:
- Individual Retirement Accounts (IRA): Contributions to a traditional IRA are deductible. You can contribute up to $7,000 (or $8,000 if you are 50 or older) and have it qualify for your 2024 taxes.
- Health Savings Accounts (HSA): If you have a high-deductible medical plan, you may contribute as much as $4,150 (or $5,150 if you are 55 or older) to an HSA, which is tax-deductible.
- 529 College Savings Plans: There is no federal deduction for saving in a 529 plan, but some states permit a deduction or credit if contributions are made prior to the tax deadline. Georgia, Indiana, Iowa, Kansas, and Wisconsin provide this advantage.
Filing an Extension If You Need More Time
If you are not prepared to file your return by April 15, you can apply for an extension on Form 4868, which gives you until October 15 to file your tax return. An extension, however, does not provide time to pay any taxes due. Estimate your tax liability and accompany your extension request with a payment to prevent penalty. Late payments incur a penalty of 0.5% each month, to a maximum of 25% of the amount due.
2021 Unclaimed Refunds
If you owed a refund from your 2021 tax return but never did file, you are running out of time. The IRS provides taxpayers with three years to receive refunds, which is April 15, 2025, the last date you can file your 2021 return and claim any due funds. According to the IRS, more than one million taxpayers have unclaimed 2021 refunds, totaling approximately $781 per individual. Losing this deadline means losing your refund to the U.S. Treasury.
Free Filing Options Available
The IRS provides free filing options for qualifying taxpayers:
- Direct File Program: In 25 states, enabling taxpayers to file directly from the IRS website.
- Free File Program: Individuals with an annual income of $84,000 or less can utilize Free File, an alliance between the IRS and tax software providers.
- Free Online Forms: Available to all taxpayers regardless of income, offering a free way to file federal returns.
What Happens If You Can’t Pay Your Taxes?
If you have unpaid taxes but cannot pay the balance by April 15, then file your return by that deadline to prevent other penalties. You may request a payment plan using an installment from the IRS, where you report on Form 9465 as you file. The partial payment prevents further growth in penalties as well. As long as the planned payment structure allows the entire amount to be repaid between five and seven years, you should be given permission by the IRS.
Conclusion
With Tax Day 2025 approaching, it’s important to move quickly to file your return, claim deductions you’re eligible for, and stay out of trouble. Whether you have missing documents to hunt down, taxable income to reduce, or an extension to obtain, using these last-minute tips can help make tax season less stressful. If you’re getting a refund, filing early will get your money faster. Don’t wait until the end—act now to remain compliant and enhance your financial rewards.
