What to know about taxes, extensions and refunds for Tax Day 2025

Axios

14-04-2025

The deadline to file federal income tax returns and extensions to the Internal Revenue Service is Tuesday for most of the country.
Why it matters: Despite layoffs and DOGE cuts, the IRS is processing tax returns and refunds at a similar pace to last year.
Timothy Wingate Jr., an Intuit tax expert, told Axios that "we haven't felt any major impact from refund delays" because of IRS staffing cuts.
The Washington Post reported that Treasury Department and IRS officials predict a decrease of more than 10% in tax receipts or more than $500 billion in lost federal revenue, compared with last year.
Last day to file taxes
April 15 has been the traditional tax filing deadline since 1954, with exceptions for when the date falls on the weekend.
Due to the pandemic, the Treasury Department and IRS delayed the deadline in both 2020 and 2021.
The calendar pushed the 2022 and 2023 due dates, but 2024 was the first time since 2019 that Tax Day fell on April 15.
States that have extra time for filing taxes
Caveat: Taxpayers in some federally declared disaster areas have additional time to file through automatic extensions.
Five states — Alabama, Florida, Georgia, North Carolina and South Carolina — have until May 1 to file their 2024 returns, as do parts of Virginia and other areas.
All of Tennessee, Kentucky and Arkansas have until Nov. 3.
There are other extensions for declared FEMA disasters.
Tax refunds bigger in 2025
The big picture: Annual tax adjustments — including updated tax brackets, an increased standard deduction and other tax inflation adjustments — are lowering income taxes for many Americans.
By the numbers: As of April 4, 101.4 million tax returns have been received, down 0.4% from the same time last year, according to IRS statistics.
100.3 million total returns have been received, up 0.2% from last year.
$211.1 billion in refunds have been processed up 5% from $201.1 billion this time last year.
The average refund has increased 3.5% to $3,116, up from $3,011 last year.
IRS Direct File open for 25 states
Zoom in: The Direct File program is available for about 30 million taxpayers in 25 states this year, an expansion from 12 states in 2024.
The free online tax-filing program is mobile-friendly; works on smartphones, tablets and computers; and is available in English and Spanish.
Direct File is available in the same 12 states it was available in 2024: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.
It's also available in 13 new states: Alaska, Connecticut, Idaho, Illinois, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania and Wisconsin.
Flashback: During the 2024 filing season, more than 3 million users checked to see if they were eligible to use the site, and more than 140,000 taxpayers used Direct File, surpassing the agency's goal of 100,000.
Direct File users saved an estimated $5.6 million in tax prep fees, the Treasury Department said.
What's next: The future of the program is uncertain. Treasury Secretary Scott Bessent pledged during his confirmation hearings that the free online tax-filing program would remain available this year, but did not commit beyond that.
Tax extension: How to file for extra time
State of play: You can get an extra six months to file taxes if you file for an extension by Tuesday, the IRS explains.
The six-month extension gives taxpayers until Oct. 15 to file 2024 returns, but there is no extension on payments.
If you expect to owe money, it is recommended that you send a payment by April 15 to avoid interest and other penalties.
How it works: Individual taxpayers, regardless of income, who don't have tax due, can request an automatic extension by using IRS Free File or by submitting Form 4868, the application for the extension.
Taxpayers with taxes due can request an extension when making a payment. The IRS says to submit an electronic payment and select Form 4868.
Penalty for not filing or paying for taxes
Threat level: Michael Frost, a Truist Wealth senior wealth strategist, told Axios to avoid penalties "taxpayers should consider being conservative in their estimate of their tax liability and their extension payment."
Penalties are higher for not filing versus not paying.
The failure-to-file penalty is a 5% penalty per month with a maximum penalty of 25% of the balance due, Frost said.
The failure-to-pay penalty is 0.5% for each month, up to 25%, per the IRS.
IRS Where's My Refund tool
Follow the money: Refund status typically appears 24 hours after e-filing a current year return on the " Where's My Refund" tool, the IRS said.
The information is updated once a day, usually between 4-5am ET. The tool is unavailable during the time.
For paper returns, plan to wait about four weeks for an update.
Mail paper tax returns
IRS mailing addresses vary by the state you live in and if you are mailing in a payment.
Find a list of addresses here.
Last chance for IRS stimulus check
Zoom out: The IRS estimates that more than $1 billion in refunds are unclaimed because taxpayers didn't file their 2021 returns, part of $2.4 billion in stimulus payments related to 2021 COVID recovery relief payments.