The IRS officially begins accepting 2025 tax returns (for the 2025 tax year) on January 26, 2026. Electronically filed (e-filed) returns are generally acknowledged and accepted within 24 to 48 hours, while most refunds are processed within 21 days.
While the IRS strives to issue most refunds within 21 days of receiving an electronically filed return, 2025 has seen a noticeable uptick in refund delays. Understanding the reasons behind these delays can help taxpayers set realistic expectations and avoid unnecessary stress.
Electronically filed Form 1040 returns are generally processed within 21 days.
January 26, 2026 - Tax season begins. This marks when the IRS will begin accepting and processing federal tax returns for the 2025 tax year. February 2, 2026 - Due date for employers to send W-2 forms.
The IRS says most refunds are issued within 21 days after tax returns are processed. So, the earlier you file, the sooner your refund arrives. If you owe tax money to the IRS, filing early gives you time to plan, since payment isn't due until Tax Day, April 15, 2026.
During the 2025 tax filing season, the IRS issued more than 93.5 million tax refunds to individual income tax filers, and 93% of those, almost 87 million refunds, were issued through direct deposit. Only 7 percent of individual refund recipients received their refunds by check through the mail.
The 2025 Filing Season for individuals opens on 7 July 2025 and covers these major dates: Auto Assessment notices: 7 July 2025 to 20 July 2025. Individual taxpayers: 21July 2025 to 20 October 2025. Provisional taxpayers: 21 July 2025 to 19 January 2026.
The IRS accepts tax returns starting in late January, with the official opening day for the 2026 tax season (for 2025 income) being January 26, 2026; most taxpayers have until April 15, 2026, to file and pay, but can get an extension to October 15 by filing Form 4868, which allows more time to file, not pay, according to CNBC and IRS.gov.
If you file taxes after the October 15 extension deadline, the IRS will assess penalties and interest, primarily a failure-to-file penalty (5% per month, max 25%), plus a separate failure-to-pay penalty (0.5% per month) and daily interest on the unpaid taxes, though you can request penalty abatement for reasonable cause like natural disasters. The October deadline is for filing, not paying; if you owe, payment was due in April, so you'll likely face both penalties and interest until you file and pay, but you won't be penalized if you're due a refund.
A new deduction for qualifying overtime pay is now available, effective in the 2025 tax year. You can deduct up to $12,500 if you're a single filer or up to $25,000 if you're married filing jointly. The deduction begins to phase out once your MAGI hits $150,000 for single filers or $300,000 for joint filers.
The IRS can reject your return for a variety of reasons. Here are some common ones: Missing or inaccurate information – If a name or number doesn't match what the IRS has on file for you, the agency could reject your return.
The IRS issues refunds only on business days. However, some banks may post deposits on Saturdays if funds are received late on a Friday.
Refund delays in AY 2025–26 are largely due to enhanced compliance checks and data matching, not system failure. Taxpayers should regularly review their AIS and Form 26AS, respond to department alerts and correct discrepancies promptly. In most cases, refunds will be issued once checks are complete.
If the IRS decides that your return merits a second glance, you'll be issued a CP05 Notice 1 . This notice lets you know that your return is being reviewed to verify any or all of the following: Your income. Your tax withholding.
Some returns take longer.
Is incomplete. Needs further review in general. Is affected by identity theft or fraud. Includes a claim filed for an Earned Income Tax Credit or an Additional Child Tax Credit.
Below is a summary of the key updates: Old deadline: September 30, 2025. New deadline: October 31, 2025.
The due date to file your California state tax return and pay any balance due is April 15, 2026. However, California grants an automatic extension until October 15, 2026 to file your return, although your payment is still due by April 15, 2026. No application is required for an extension to file.
The IRS states that 9 out of 10 refunds are processed within 21 days from the date the return is accepted.
Monday, Jan. 26, 2026 is opening day for the 2026 tax filing season. This is when taxpayers can begin filing their 2025 federal tax returns.
Here's a summary of key changes for the 2025 tax year.
The most convenient way to check on a tax refund is by using the Where's My Refund? tool on IRS.gov. Taxpayers can start checking their refund status within 24 hours after the IRS acknowledges receipt of the taxpayer's e-filed return.
For the 2025 tax year, the Child Tax Credit (CTC) is worth up to $2,200 per qualifying child, with up to $1,700 of that being refundable (Additional Child Tax Credit) for lower-income families, available if you have at least $2,500 in earned income. Eligibility requires the child to be under age 17, meet residency/relationship tests, have a valid SSN, and not provide more than half their own support. Higher incomes phase out the credit: above $200,000 for single filers and $400,000 for joint filers.