Taxes 2025: IRS tax deadline is upon on us for filing a return or extension

The deadline for filing federal income tax returns and extensions is approaching on Tuesday for most Americans. Despite some staffing cuts, the IRS is processing returns and issuing refunds at a similar pace to last year. The Treasury Department anticipates a decrease in tax receipts, potentially by over $500 billion. Taxpayers in several states affected by disasters have extended filing deadlines, with some having until May 1 or November 3. Annual tax adjustments, like updated brackets, are lowering income taxes for many. Refund processing is up this year, with both the total amount and average refund size increasing. The Direct File program, a free online filing option, is expanding to 25 states, including new additions like Illinois and New Jersey. Taxpayers can obtain an automatic six-month extension to file, but payments are still due by the original deadline. Penalties for failing to file are higher than those for failing to pay taxes. The IRS "Where's My Refund" tool provides status updates. Finally, the IRS estimates that many taxpayers are still missing stimulus payments from 2021.