With just two weeks until Tax Day, the pressure is on for millions of Americans who have yet to file their 2024 federal income tax returns. Despite ongoing challenges at the IRS and broader concerns about government efficiency, financial professionals say this year’s tax season has been relatively smooth.
The IRS expects roughly 140 million individual tax returns to be filed for the 2024 tax year.
“People are definitely worried about how taxes will go this year,” said Eric Bronnenkant, head of tax at Edelman Financial Engines. “But the truth is, there haven’t been any major changes that would disrupt the filing process.”
If you’re still working on your return—or haven’t started—here’s what tax and financial experts say you need to know:
Key Tax Deadlines
Federal Deadline:
The deadline to file your federal income tax return is Monday, April 15, 2025. Most states also follow this deadline for their own income tax filings, though there are some state-specific exceptions.
Extension Option:
If you’re not ready to file by April 15, don’t panic. You can request an automatic six-month extension, which gives you until October 15, 2025, to file your return.
⚠️ Important: If you owe taxes, you must still pay by April 15—even if you file for an extension.
Disaster Relief Exceptions:
Some taxpayers impacted by recent natural disasters—such as the California wildfires or severe floods in the Southeast—may have additional time to file and pay. Check the IRS website for specific disaster-related extensions.
Electronic Filing Is Encouraged
Experts and the IRS agree: filing electronically is safer, faster, and more efficient than sending in a paper return.
“E-filing through trusted tax software reduces the chance of mistakes and speeds up refunds,” says Tyler Horn, head of tax planning at Origin, a personal finance platform. “Paper returns can be lost, and paper checks can be delayed or even stolen.”
With an executive order mandating the phase-out of paper checks by September 30, 2025, now is also the perfect time to set up or confirm your direct deposit information with the IRS.
Free Filing Options Available
Don’t assume you have to pay to file. Many Americans qualify for free tax preparation services, including:
- IRS Free File: Available for individuals and families with an adjusted gross income (AGI) of $84,000 or less. This public-private partnership includes services from TaxAct, 1040Now, and others.
- Direct File: The IRS’s new in-house e-filing platform, now available in 25 states, allows users to file their federal taxes without third-party software. It’s free, user-friendly, and growing in popularity.
- Commercial Providers: Companies like H&R Block, TurboTax, and TaxSlayer offer free versions for simple tax situations.
- Personal Finance Apps: Origin offers free filing through its platform, though a subscription is required for additional features.
Standard vs. Itemized Deduction
For most taxpayers, the standard deduction remains the better deal. It was significantly raised by the 2017 Tax Cuts and Jobs Act, making itemizing less beneficial unless you have large qualifying expenses.
“Unless you’re paying high mortgage interest or facing major medical bills, the standard deduction will usually save you more time and money,” Horn says.
What to Know About Income and Reporting
While President Trump has floated proposals to eliminate taxes on Social Security benefits, tips, and overtime pay, none of these have been passed into law. As of now, all income—including cash and non-cash tips and Social Security—remains taxable.
“Taxpayers should plan based on current tax law, not speculative proposals,” warns Tipiwa Walker, a certified financial planner at Lucre Advisory.
New Rules for Online Income
One of the most notable changes this tax season is the updated IRS reporting threshold for third-party payment platforms. If you earned $5,000 or more from apps like Venmo, eBay, Etsy, or Airbnb, those platforms are required to send a 1099-K form to both you and the IRS.
This is part of a phased reduction in the threshold, which will eventually drop to $600. Be sure to report profits from goods or services sold online.
Still Time to Lower Your Tax Bill
Taxpayers still have until April 15 to reduce their tax liability by making eligible contributions to retirement or health savings accounts:
- IRA Contribution Limits (2024):
- $7,000 (or $8,000 if you’re 50 or older)
- HSA Contribution Limits (2024):
- $4,150 for individuals
- $5,150 if age 55+
- $8,300 for families with high-deductible health plans
Make sure your contributions are marked as 2024 contributions and that you haven’t exceeded the annual limit.
Track Your Refund
Already filed and waiting for your refund? Use the IRS’s “Where’s My Refund?” tool at irs.gov to track it.
- E-filers can usually check status within 24 hours
- Paper filers may have to wait up to four weeks
- Most refunds are issued within 21 days
For faster processing, choose e-filing and direct deposit.
Final Thoughts
With the April 15 deadline fast approaching, now is the time to file—or file for an extension. Don’t rush the process, but don’t delay unnecessarily either. Filing electronically, using free tools when eligible, and taking advantage of last-minute deductions can save you time, stress, and money.
– 2025 Tax Season Updates from FingerLakes1.com
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