Overview
- The IRS will begin accepting and processing 2025 individual returns on Monday, Jan. 26, with April 15 as the deadline to file and pay or request an extension.
- Many filers will use new Schedule 1‑A to claim provisions from the One Big Beautiful Bill, including limited taxation of tips and overtime, a car‑loan interest deduction, and an enhanced senior deduction.
- Refunds will be issued primarily by direct deposit as paper checks are phased out under a federal payments modernization order, and IRS Free File opens Jan. 9 for eligible taxpayers.
- Taxpayers must report digital‑asset transactions and income from payment apps or marketplaces, answering the digital‑asset question on Form 1040 and using Forms 1099‑DA or 1099‑K where applicable.
- The IRS expects about 164 million returns and says systems are ready, but bigger refunds are possible for many due to retroactive law changes and unchanged withholding, and EITC/ACTC refund holds and some form availability may slow timing.