As tax season opened on Jan. 27, the IRS received millions of returns, with many filers eager for a refund.
Nearly 40% of taxpayers will rely on refunds this year to make ends meet, according to a Credit Karma survey that polled 1,000 adults in late December and early January.
Meanwhile, the IRS expects more than 140 million individual tax returns for tax year 2024 to be filed ahead of the April 15 federal deadline.
There are, however, some key things to know before filing your taxes this season.
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Many taxpayers qualify for free filing options
If you’re eager to file your taxes for free, there are several options for your 2024 filing, according to financial experts.
This season, more than 30 million taxpayers may be eligible for Direct File, the IRS’ free tax filing program, according to the U.S. Department of the Treasury.
Direct File has expanded to 25 states and “will cover more tax situations than last year,” former IRS Commissioner Danny Werfel told reporters during a press call in early January.
Another option, IRS Free File, offers free guided tax prep software if your adjusted gross income, or AGI, was $84,000 or less in 2024.
An estimated 70% of taxpayers qualify for IRS Free File, but only a fraction of eligible filers use it, according to Tim Hugo, executive director of the Free File Alliance.
Many filers also qualify for more guidance via Volunteer Income Tax Assistance, or VITA, a free IRS-run program. You’re generally eligible with an AGI of $67,000 or less.
Tax relief for natural disaster victims
While the federal tax deadline is April 15 for most filers, some tax filers — including California wildfire victims — have extensions to file returns and pay taxes owed. The IRS provides a detailed breakdown of IRS tax relief by date.
Congress in December also extended tax relief for certain victims impacted by federally declared natural disasters from 2020 to early 2025. As a result, some filers could qualify for a bigger tax break for losses.
Missing forms could delay your return
While it may be tempting to file your return quickly, it’s important to gather the necessary tax forms first, according to certified public accountant Brian Long, senior tax advisor at Wealth Enhancement in Minneapolis.
Otherwise, the IRS systems could flag your return for missing or inaccurate information, which could delay processing.
However, you can use your “prior-year tax return as a checklist” for accuracy, Long added.
While many tax forms arrive in January, others may come mid-February to March or later, experts say.