tax day 2025

Americans Prepare for Tax Day 2025 Amid Policy Changes and Filing Challenges

Dateline: [City, State] – April 15, 2025

Millions Rush to Meet Tax Filing Deadline

As the clock ticks down to April 15, 2025, Americans nationwide are making last-minute efforts to file their federal and state tax returns before the annual Tax Day deadline. With the IRS reporting an estimated 165 million individual tax returns expected this year, filers are facing a mix of new tax policies, potential refund delays, and increased enforcement efforts by the government.

Key Changes in the 2025 Tax Season

This year’s tax season has introduced several policy updates that have impacted both individuals and businesses. Some of the most significant changes include:

  • Higher Standard Deduction: The standard deduction for single filers has increased to $14,600, while married couples filing jointly can now claim $29,200—a rise from the 2024 tax year, adjusted for inflation.
  • Expanded Child Tax Credit: Eligible parents can now receive up to $3,600 per child under 6 years old and $3,000 per child aged 6 to 17, following new legislation passed in late 2024.
  • 1099-K Reporting Threshold Delayed: The IRS has once again postponed the $600 reporting threshold for third-party payment apps like Venmo, PayPal, and Cash App, keeping the previous $20,000 threshold in place for 2025.
  • IRS Crackdown on High Earners: The agency has increased audits for individuals earning over $400,000 annually, as part of its broader tax enforcement measures following increased funding from the Inflation Reduction Act.

Filers Encounter Technical Issues and IRS Backlog

Despite ongoing IRS efforts to modernize its e-filing system, many taxpayers reported delays and glitches while submitting returns through IRS.gov and tax software platforms.

“I’ve been trying to file my return since last week, but the system keeps crashing,” said Mark Stevenson, 42, from Atlanta, GA. “It’s frustrating because I just want to get my refund processed on time.”

The IRS has acknowledged these issues and reassured taxpayers that returns filed electronically with direct deposit will be processed within 21 days, barring complications. However, paper filers could face delays of up to 10 weeks due to backlogs.

Average Refunds Down Slightly Compared to 2024

Early data from the IRS shows that the average tax refund for 2025 has decreased slightly compared to the previous year. As of March 30, 2025, the agency reported an average refund of $2,875, down 3.2% from the 2024 tax season.

Experts say the drop is largely due to adjustments in withholding amounts and the expiration of certain pandemic-era tax credits.

“Many taxpayers are seeing smaller refunds because they had less withheld from their paychecks throughout the year,” said CPA Jennifer Lopez, a tax professional based in Los Angeles, CA. “The good news is that people got more in their paychecks, but the downside is smaller refunds.”

Last-Minute Filers Seek Extensions

For those unable to meet the April 15 deadline, the IRS allows taxpayers to request an automatic six-month extension by filing Form 4868. However, tax professionals warn that an extension does not postpone tax payments, and any taxes owed must still be paid by April 15 to avoid penalties and interest.

Taxpayer Melissa Carter from Chicago, IL, said she filed for an extension due to missing paperwork. “I just couldn’t get everything together in time, so I had to file an extension. But I made sure to send an estimated payment to avoid penalties.”

Taxpayers Face Scams and Fraud Risks

Tax season is also peak time for fraudulent activities, with scammers targeting unsuspecting filers through phishing emails, phone scams, and fake IRS notifications. The IRS has warned taxpayers to be vigilant against phone calls demanding immediate payments, as the agency never requests payment through gift cards, wire transfers, or cryptocurrency.

State Tax Deadlines and Variations

While April 15 is the federal filing deadline, state tax deadlines vary. Most states align with the federal deadline, but a few have later due dates:

  • Massachusetts & MaineApril 17, 2025 (due to state holidays)
  • IowaApril 30, 2025
  • LouisianaMay 15, 2025

Residents of states without income tax—such as Texas, Florida, and Nevada—are not required to file a state return.

Taxpayer Assistance and Free Filing Options

To help low-income earners and seniors navigate the filing process, the IRS has expanded its Free File program, allowing individuals with an income below $79,000 to file electronically at no cost. Additionally, Volunteer Income Tax Assistance (VITA) centers remain open across the country, offering in-person tax help.

For those still in need of assistance, the IRS encourages taxpayers to use its Interactive Tax Assistant on IRS.gov, which provides tailored answers based on individual tax situations.

Millions Rush to Meet Tax Filing Deadline

As the clock ticks down to April 15, 2025, Americans nationwide are making last-minute efforts to file their federal and state tax returns before the annual Tax Day deadline. With the IRS reporting an estimated 165 million individual tax returns expected this year, filers are facing a mix of new tax policies, potential refund delays, and increased enforcement efforts by the government.

Key Changes in the 2025 Tax Season

This year’s tax season has introduced several policy updates that have impacted both individuals and businesses. Some of the most significant changes include:

  • Higher Standard Deduction: The standard deduction for single filers has increased to $14,600, while married couples filing jointly can now claim $29,200—a rise from the 2024 tax year, adjusted for inflation.
  • Expanded Child Tax Credit: Eligible parents can now receive up to $3,600 per child under 6 years old and $3,000 per child aged 6 to 17, following new legislation passed in late 2024.
  • 1099-K Reporting Threshold Delayed: The IRS has once again postponed the $600 reporting threshold for third-party payment apps like Venmo, PayPal, and Cash App, keeping the previous $20,000 threshold in place for 2025.
  • IRS Crackdown on High Earners: The agency has increased audits for individuals earning over $400,000 annually, as part of its broader tax enforcement measures following increased funding from the Inflation Reduction Act.

Filers Encounter Technical Issues and IRS Backlog

Despite ongoing IRS efforts to modernize its e-filing system, many taxpayers reported delays and glitches while submitting returns through IRS.gov and tax software platforms.

“I’ve been trying to file my return since last week, but the system keeps crashing,” said Mark Stevenson, 42, from Atlanta, GA. “It’s frustrating because I just want to get my refund processed on time.”

The IRS has acknowledged these issues and reassured taxpayers that returns filed electronically with direct deposit will be processed within 21 days, barring complications. However, paper filers could face delays of up to 10 weeks due to backlogs.

Average Refunds Down Slightly Compared to 2024

Early data from the IRS shows that the average tax refund for 2025 has decreased slightly compared to the previous year. As of March 30, 2025, the agency reported an average refund of $2,875, down 3.2% from the 2024 tax season.

Experts say the drop is largely due to adjustments in withholding amounts and the expiration of certain pandemic-era tax credits.

“Many taxpayers are seeing smaller refunds because they had less withheld from their paychecks throughout the year,” said CPA Jennifer Lopez, a tax professional based in Los Angeles, CA. “The good news is that people got more in their paychecks, but the downside is smaller refunds.”

Last-Minute Filers Seek Extensions

For those unable to meet the April 15 deadline, the IRS allows taxpayers to request an automatic six-month extension by filing Form 4868. However, tax professionals warn that an extension does not postpone tax payments, and any taxes owed must still be paid by April 15 to avoid penalties and interest.

Taxpayer Melissa Carter from Chicago, IL, said she filed for an extension due to missing paperwork. “I just couldn’t get everything together in time, so I had to file an extension. But I made sure to send an estimated payment to avoid penalties.”

Taxpayers Face Scams and Fraud Risks

Tax season is also peak time for fraudulent activities, with scammers targeting unsuspecting filers through phishing emails, phone scams, and fake IRS notifications. The IRS has warned taxpayers to be vigilant against phone calls demanding immediate payments, as the agency never requests payment through gift cards, wire transfers, or cryptocurrency.

State Tax Deadlines and Variations

While April 15 is the federal filing deadline, state tax deadlines vary. Most states align with the federal deadline, but a few have later due dates:

  • Massachusetts & MaineApril 17, 2025 (due to state holidays)
  • IowaApril 30, 2025
  • LouisianaMay 15, 2025

Residents of states without income tax—such as Texas, Florida, and Nevada—are not required to file a state return.

Taxpayer Assistance and Free Filing Options

To help low-income earners and seniors navigate the filing process, the IRS has expanded its Free File program, allowing individuals with an income below $79,000 to file electronically at no cost. Additionally, Volunteer Income Tax Assistance (VITA) centers remain open across the country, offering in-person tax help.

For those still in need of assistance, the IRS encourages taxpayers to use its Interactive Tax Assistant on IRS.gov, which provides tailored answers based on individual tax situations.

Scroll to Top