News & Updates

Free electronic filing options

Taxpayers with an adjusted gross income of $84,000 or less in 2024 can use IRS Free File guided tax software now through Oct 15. IRS Free File Fillable forms, a part of this program, is available at no cost to taxpayers of any income level and provides electronic forms for people to fill out and e-file themselves.

IRS Direct File is now open to all eligible taxpayers in 25 states to file their 2024 federal tax returns online, for free, directly with the IRS. Go to the Direct File website for more information about Direct File eligibility and the 25 participating states.

Through a network of community partnerships, the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free tax return preparation to eligible people in the community by IRS-certified volunteers.

MilTax, a Department of Defense program, generally offers free return preparation and electronic filing software for federal income tax returns and up to three state income tax returns for all military members, and some veterans, with no income limit.

Use Where's My Refund? to check refund status

The Where's My Refund? tool usually shows a refund status within 24 hours after a taxpayer e-files a current year return. It takes about four weeks for the same information to be available for those filing paper returns.

Taxpayers can get their refund information for the current year and past two years. The tool is available 24/7, and is a fast, easy way to get information about a refund without needing to call the IRS. To use the tool, taxpayers need their Social Security number, filing status and exact refund amount. The tool updates once a day, so people don't need to check more often.

Taxpayers can also check Where's My Refund? by downloading the IRS free mobile app, IRS2Go, from an iPhone or Android device.

Taxpayers that owe on their tax return

IRS reminds people they can avoid paying interest and some penalties by filing their tax return and, if they have a balance due, paying the total amount due by the tax deadline of April 15.

Payment options for individuals

The IRS offers various options for taxpayers who are making tax payments:

• Direct Pay – Make a payment directly from a checking or savings account without any fees or registration.
• IRS Individual Online Account – Make a payment directly from a checking or savings account and view amount due, payment plan details, payment history and scheduled payments. To create an account or for more information, taxpayers can visit the online account page on IRS.gov.
• Pay taxes with debit card, credit card or digital wallet – Make a payment directly with a debit card, credit card or digital wallet. Fees are paid to the payment processors. The IRS doesn’t receive any fees for these payments. Authorized card processors and phone numbers are available on IRS.gov.
• Electronic Federal Tax Payment System (EFTPS) – This free service gives taxpayers a safe, convenient way to pay individual and business taxes by phone or online. To enroll and for more information, taxpayers can visit eftps.gov or call 800-555-4477.
• Electronic funds withdrawal (EFW) – Taxpayers can file and pay electronically from their bank account when using tax preparation software or a tax professional. This option is free and only available when electronically filing a tax return.
• Check or money order – Payments made by check or money order should be made payable to the “United States Treasury.”
• Cash – Make a cash payment through a retail partner and other methods. The IRS urges taxpayers choosing this option to start early because it involves a four-step process. Details, including answers to frequently asked questions, are on the IRS.gov page on how to pay with cash at a retail partner.

Payment options for individuals unable to pay their taxes in full

Taxpayers who can’t pay in full by the tax deadline should pay what they can now and apply for an online payment plan. Applicants that apply online will know immediately if their request for a payment plan is accepted or denied without calling or writing to the IRS.

Online payment plan options include:

• Short-term payment plan – The total balance owed is less than $100,000 in combined tax, penalties and interest. Additional time of up to 180 days to pay the balance in full.
• Long-term payment plan – New Simple Payment Plan criteria make it easier and more accessible to enter a long-term payment plan when the total balance owed is less than $50,000 in combined tax, penalties and interest. Taxpayers may pay in monthly payments for up to the collection statute, usually 10 years. Payments may be set up using direct debit (automatic bank withdrawal), which eliminates the need to send in a payment each month, saves postage costs and reduces the chance of default.

Though interest and late-payment penalties continue to accrue on any unpaid taxes after April 15, the failure to pay penalty is cut in half while an installment agreement is in effect. Find more information about the costs of payment plans on the IRS Additional information on payment plans webpage.

Unable to file by the April 15 deadline?

Individuals unable to file their tax return by the tax deadline can apply for a tax-filing extension in the following ways:

• Individual tax filers, regardless of income, can electronically request an automatic tax-filing extension through IRS Free File by filing a Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
• Make an electronic payment using Direct Pay, debit card, credit card or digital wallet and indicate the payment is for an extension.
• Mail Form 4868 by the tax deadline.

Getting an extension

Things taxpayers should know when requesting a tax-filing extension, including:

• Tax-filing extension requests are due by the tax deadline date, and it does not give an extension of time to pay the taxes.
• Avoid some penalties by estimating and paying the tax due by the tax deadline.
• Special rules for tax deadlines and automatic tax-filing extensions may apply for taxpayers serving in a combat zone or qualified hazardous duty areas, living outside the United States, and people living in certain disaster areas. They may not need to submit a tax-filing extension; however, people should check to see if they qualify before the tax deadline.

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Who qualifies?

A taxpayer qualifies for the June 16 extension if they are a U.S. citizen or resident alien and, on the regular due date of their return:

• They are living outside the United States and Puerto Rico and their main place of business or post of duty is outside the United States and Puerto Rico, or
• They are in military or naval service on duty outside the United States and Puerto Rico.

Qualifying taxpayers should attach a statement to the return indicating which of these two situations applies.

Extensions beyond June 16

Taxpayers who can’t meet the June 16 due date can request an automatic extension to Oct. 15, 2025. This is an extension of time to file, not an extension to pay.

The fastest and easiest way to get an extension is to request it electronically. Several electronic filing options are available. Visit Get an Extension to File Your Tax Return for details. Taxpayers may also use IRS Free File to file an extension electronically.

Taxpayers who cannot request an extension electronically can complete and mail Form 4868 to the IRS. See About Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return for more information.

Taxpayers can also get an extension when paying a tax bill electronically. There is no need to file Form 4868 when selecting an extension when paying electronically.

Businesses that need more time must file Form 7004 to request an automatic 6-month extension. Visit About Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns.

Combat zone extensions

Members of the military in a combat zone during tax filing season may qualify for an additional extension of at least 180 days to file and pay taxes. More information, like who qualifies, can be found at Extension of Deadlines – Combat Zone Service Q&As.

Spouses of individuals who serve in a combat zone or contingency operation are generally entitled to the same deadline extensions with some exceptions. Extension details and tax information for members of the military are available in IRS Publication 3, Armed Forces’ Tax Guide.

Special relief for terrorist attacks in Israel

Taxpayers who live or have a business in Israel, Gaza or the West Bank and certain other taxpayers affected by the terrorist attacks in the State of Israel have until Sept. 30, 2025, to file and pay. This includes most returns and taxes due from Oct. 7, 2023, through Sept. 30, 2025, including Form 1040 and 1120 series returns.

Filing required to get tax benefits

Many taxpayers living outside the U.S. qualify for tax benefits such as the Foreign Earned Income Exclusion and the Foreign Tax Credit, but these benefits are available only if a U.S. return is filed. Other deductions and tax credits may also be available. For details, see Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, available on IRS.gov.

Reporting required for foreign accounts and assets

Federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to complete and attach Schedule B, Interest and Ordinary Dividends, to their Form 1040 series tax return. Part III of Schedule B asks about the existence of foreign accounts such as bank and securities accounts and usually requires U.S. citizens to report the country in which each account is located.

In addition, many taxpayers may also need to complete and attach to their return Form 8938, Statement of Specified Foreign Financial Assets. Generally, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds. For details, see the instructions for this form.

Reporting foreign financial accounts to Treasury

Foreign financial accounts, such as bank accounts or brokerage accounts, must be reported to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) by electronically filing Form 114, Report of Foreign Bank and Financial Accounts (FBAR). The FBAR requirement applies to anyone with an interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2024.

The IRS urges taxpayers with foreign assets, even relatively small ones, to check if this filing requirement applies to them. The form is available only through the Bank Secrecy Act E-Filing System. The deadline for filing the annual FBAR is April 15, 2025. However, FinCEN grants those who missed the April deadline an automatic extension until Oct. 15, 2025. There’s no need to request this extension. See FinCEN’s website PDF for further information.

Report in U.S. dollars

Any income received or deductible expenses paid in foreign currency must be reported on a U.S. tax return in U.S. dollars. Likewise, any tax payments must be made in U.S. dollars.

Both FINCEN Form 114 and IRS Form 8938 require the use of a Dec. 31 exchange rate for all transactions, regardless of the actual exchange rate on the date of the transaction. Generally, the IRS accepts any posted exchange rate that is used consistently. For more information on exchange rates, see Foreign currency and currency exchange rates.

Making tax payments

To ensure tax payments are credited promptly, the IRS urges taxpayers to consider the speed and convenience of paying their U.S. tax obligation electronically. The fastest and easiest way to do that is via their IRS Online Account, IRS Direct Pay and the Electronic Federal Tax Payment System (EFTPS). Options to pay with debit or with credit card and digital wallets are available as well. Service providers charge a fee for this option. For details on these and other electronic payment options, visit IRS.gov/payments.

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Collect all tax-related paperwork

Taxpayers should gather all documents including W-2s, 1099s and other information returns, as well as any supporting paperwork for tax deductions or credits such as educational credits or mortgage interest payments. Having the previous year's tax return accessible is also advised as it may be required. Taxpayers can also check their IRS Individual Online Account to view their Form W-2, Wage and Tax Statement, and Form 1095-A, Health Insurance Marketplace Statement, under the Records and Status tab in the taxpayer’s Individual Online Account.

Ensure filing status, names, birthdates and Social Security numbers are correct

Taxpayers must accurately provide the name, date of birth and SSN for each dependent listed on their individual income tax return. The SSN and individual's name should be entered precisely as indicated on the Social Security card. In cases where a dependent or spouse lacks an SSN and is ineligible to obtain one, an assigned individual tax identification number (ITIN) should be listed instead of an SSN.

Use electronic filing

The IRS advises taxpayers and their tax advisors to use electronic filing methods such as IRS Free File, Free File Fillable Forms or with Direct File. Electronic filing decreases mathematical errors, identifies potential tax credits or deductions for which the taxpayer qualifies and prompts taxpayers for missing information. Opting for electronic filing and selecting direct deposit is the fastest and safest way to receive a refund.

While taxpayers and tax professionals are urged to choose electronic filing when filing individual tax returns, there are taxpayers who must submit a paper tax return. It is essential that paper filers verify the accurate mailing address either on IRS.gov or in the instructions provided with Form 1040 to prevent processing delays.

Report all taxable income

Most income is subject to taxation. Failing to accurately report income may result in interest and penalties. Taxable income includes various sources of income such as interest earnings, unemployment benefits and income derived from the service industry, gig economy and digital assets. For further details, consult Publication 525, Taxable and Nontaxable Income.

Answer the digital assets question

Everyone who files Forms 709, 1040, 1040-SR, 1040-NR, 1041, 1065, 1120 and 1120S must check one box answering either "Yes" or "No" to the digital asset question. The question must be answered by all taxpayers, not just by those who engaged in a transaction involving digital assets in 2024.

Taxpayers must report all income related to digital asset transactions. Visit the Digital assets page on IRS.gov for details on when to check “yes” and how to report digital asset transactions.

Make sure banking routing and account numbers are correct

Taxpayers have the option to request direct deposit of a federal refund into one, two or even three accounts. For taxpayers who do not have a traditional bank account, some mobile apps and prepaid debit cards have routing and account numbers that allow for direct deposit of tax refunds. When expecting a refund, ensure the routing and account numbers provided for direct deposit are accurate to avoid delays or misdirected refunds.

Remember to sign and date the return

When submitting a joint return, both spouses must sign and date the return. If taxpayers are preparing their taxes independently and filing electronically, they need to sign and authenticate their electronic tax return by inputting their adjusted gross income from the prior year. For more guidance, visit Validating your electronically filed tax return.

Need to make a payment

Tax payments are still due on April 15 for most taxpayers. Payments can be made using Individual Online Account, Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or with a debit/credit card or digital wallet. By doing so, taxpayers avoid the necessity of filing a separate extension form and receive a confirmation number for their records.

Request an extension if needed

Taxpayers requiring more time to file their taxes can easily request a six-month extension until Oct. 15. The IRS offers three options to request an extension to file:

• Pay what you owe using an online payment option and check the box that you are paying as part of filing for an extension.
• Requested at no cost either through IRS Free File regardless of income, or
• By submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, by April 15.

While an extension avoids late filing penalties and provides extra time for filing, an extension of time to file is not an extension of time to pay. Taxpayers can seek an extension to file by making a full or partial payment of their estimated income tax and indicating that the payment is for an extension.

Many taxpayers may have more time to file if they were affected by a disaster situation. Visit Tax relief in disaster situations for information on the most recent tax relief provisions based on FEMA’s declarations.

Keep a copy of the tax return

Taxpayers should maintain copies of their signed return and any accompanying schedules for their personal records and to help them prepare future tax returns and figure mathematical computations in the event they have to file an amended return. Typically, taxpayers should retain records supporting income, deductions or credits claimed on their tax return until the period of limitations for that specific tax return expires.

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Two RMD payments are possible in the same year

The April 1 RMD deadline is for the first year only. For subsequent years, the distribution is due by December 31.

Taxpayers receiving their first required distribution for 2024 in 2025 (by April 1) must take their second RMD for 2025 by Dec. 31, 2025. The first distribution is taxable in 2025 and reported on the 2025 tax return, along with the regular 2025 distribution.

Retirement plans needing RMDs

RMD rules apply to owners of traditional, Simplified Employee Pension (SEP) and Savings Incentive Match Plan for Employees (SIMPLE) IRAs while the original owner is alive, and to participants in 401(k), 403(b) and 457(b) plans. Roth IRAs are not subject to required minimum distributions.

An IRA trustee must inform the IRA owner of the RMD amount or, alternatively, offer to calculate the distribution amount. The RMD amount will typically appear on Form 5498, IRA Contribution Information, in Box 12b. For a 2024 distribution due by April 1, 2025, the amount is shown on the 2023 Form 5498, usually issued early in 2024.

Some individuals can defer RMDs

The April 1 deadline applies to all traditional IRA owners, as well as most workplace retirement plan participants. Some individuals with workplace plans, however, may be able to delay their RMD.

Most participants can wait until April 1 after retiring to receive distributions if their workplace plan allows it. This exception does not apply to 5% business owners or to participants in SEP and SIMPLE IRA plans. See Publication 575, Pension and Annuity Income, for information regarding the tax on excess accumulation.

Public school employees and certain tax-exempt organization staff with pre-1987 403(b) plan accruals should consult their employer, plan administrator or provider for guidance on handling these accruals.

IRS online tools and publications are available for assistance

Many answers to questions about RMDs can be found at Required Minimum Distribution FAQs on IRS.gov. To determine their distribution amount, most taxpayers can use Table III (Uniform Lifetime) on that page, while Table II should be used by married taxpayers whose spouse is more than 10 years younger and is their sole beneficiary.

For a 2024 required minimum distribution (due April 1, 2025), refer to the life expectancy tables in Appendix B of Publication 590‑B, Distributions from Individual Retirement Arrangements (IRAs). Table III shows that the RMD for an individual who is 73 years old in 2024 is typically based on a distribution period of 26.5 years. The Dec. 31, 2023, balance should be divided by 26.5 to calculate the RMD for 2024.

IRS Publication 590-B, Distributions from Individual Retirement Arrangements, also includes worksheets, examples, and additional information that can assist anyone in determining their RMD. Publication 590 provides additional RMD information and resources for use in preparing 2024 federal tax returns.

For further details on RMDs and other changes impacting retirees and retirement plan participants, visit Tax information for seniors & retirees on IRS.gov.

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For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily. Here is a complete list of the new rates:

• 7% for overpayments (payments made in excess of the amount owed), 6% for corporations.
• 4.5% for the portion of a corporate overpayment exceeding $10,000.
• 7% for underpayments (taxes owed but not fully paid).
• 9% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points. The rate for large corporate underpayments is the federal short-term rate plus five percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during January 2025. See the revenue ruling for details.

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