MarketWatch—The tax season is just around the corner. It’s never too early to get started.
January is a big month for the letter R, with resolutions, resets and tax returns demanding our attention.
While it’s undeniably early days, the Internal Revenue Service will tell you it’s not too early to think about the income-tax returns for 2024 that will start to come due soon enough.
The federal tax collector typically begins accepting and processing tax returns for the prior calendar year in late January, though it hasn’t yet announced when it will start handling returns for 2024.
In the interim, there are documents to watch for and other preliminary planning that taxpayers can do, said Barbara Weltman, author of “J.K. Lasser’s 1001 Deductions & Tax Breaks 2025.” Some households also need to be aware of their quarterly tax-payment deadlines before filing their returns for the full year, she observed.
Taxes can become a maze due to the interplay of personal financial circumstances and broad tax laws. Getting to the finish line is important. The tax refunds coming to many Americans are a key event in their financial lives, and not paying your taxes can sometimes lead to hefty fines if not worse.
When can I start filing my taxes in 2025?
Stay tuned, because the IRS hasn’t announced when it will start accepting 2024 income-tax returns. It’s a good guess that date’s coming soon. Last year, the IRS started accepting tax returns on Jan. 29, and a year earlier the agency began accepting returns on Jan. 23.
Here’s a deadline that’s definitive: Wednesday, Jan. 15.
That’s the final day on which taxpayers with nonwage income need to pay their estimated taxes for the fourth quarter of 2024. This would be the taxes on income sources including unemployment benefits, self-employment income and annuities.
Tax season’s end date is also known. It’s Tuesday, April 15, 2025. That’s the deadline for taxpayers to pay any taxes they owe and also the time to either submit a tax return or file for an extension through Oct. 15.
With an extension, the IRS is granting more time to turn in a tax return - but not more time to pay any taxes owed. The IRS has a range of options for taxpayers who can’t pay their full tab at once, including installment plans.
The IRS will handle paper returns, but it advises taxpayers to file electronically using direct deposit so it can send refunds to taxpayers at the fastest pace. Last year, the IRS issued over 104.8 million refunds, averaging $3,183.
When will I get my W-2 and other tax forms for my 2024 taxes?
Many of the important tax documents people need for their returns should be coming by the end of this month.
Employers should give employees their W-2 forms by Jan. 31, according to the IRS. These are the tax forms showing the wages and tips that were paid to a worker in 2024, and the amount that was withheld for federal and state taxes.
Independent contractors should be on the lookout for form 1099-NEC, which is also due to them by Jan. 31, according to the IRS. People who were paid at least $5,000 for their goods and services on platforms like eBay (EBAY) and Etsy (ETSY) should be expecting 1099-K forms this month, the IRS said.
Those forms used to be triggered after a person was paid $20,000 via payment platforms like PayPal (PYPL) or the Cash app (SQ). The IRS has delayed implementing a law change from nearly four years ago that lowered the threshold to $600.
Investors in the financial markets should be getting their 1099-B forms by Feb. 18, documenting their gains and losses for the 2024 tax year, via their brokerage firms.
Have there been tax-law changes that taxpayers should know about?
Many provisions of the Republican tax-code overhaul of 2017, including individual tax-rate reductions, are set to sunset at the end of this year, so lawmakers will have decisions to make in the new Congress about the taxation of income earned in 2026 and beyond. But there have only been a few changes to the landscape for the taxes people are set to file this year.
One example is a law passed last month making the tax code more generous for victims of federally declared natural disasters, including Hurricane Milton and Hurricane Helene.
The law’s favorable tax treatment for disaster victims may also prompt people affected by other natural disasters in recent years, like Hurricane Ian and Hurricane Nicole, to consider amending previously filed tax returns, said Jerry Schreiber of Schreiber & Schreiber in New Orleans, a CPA and an expert on the tax consequences of natural disasters.
“For a lot of people, this could be a very meaningful option,” author Weltman added.
What are the 2025 income-tax brackets?
At the same time, tax rules change every year, and it’s not always because legislators have passed new laws.
Around 60 provisions in the tax code are indexed to rise with inflation, including the ranges comprised by the seven income-tax brackets. For 2024 those ranges climbed approximately 5.4% after an approximate 7% increase during the 2023 tax year.
Most Americans decrease their taxable income using the standard deduction instead of itemizing deductions. That standard deduction has risen to $14,600 for individuals. It’s up to $21,900 for people filing as head of household and $29,200 for a married couple filing jointly.
