Tax Season Starts Today: Here’s What You Should Know

It’s that time again. Tax season starts today, and whether you’re excited for a refund, bracing for a big bill, or just eager to get through the tedious process, the countdown to April 15 has officially begun.

Last year about 15 million taxpayers filed their federal tax return in the first five days of tax season, but most Americans don’t get to it right away, and plenty of taxpayers will even wait until the last minute.

Regardless of when you file, we’ve got a challenge for you: Instead of thinking of it as an unwelcome chore, use it as an opportunity to get a good look at your overall financial picture.

You’re rooting through paper-stuffed drawers and scouring your email inbox for financial documents anyway, so why not make the effort more worthwhile? This is the perfect moment to examine your retirement savings contributions, medical bills, and investment returns for the year — you might be surprised by what you learn.

In the meantime, the IRS has this helpful online checklist to get you started, including how to sign up for a six-digit “identity protection” PIN that should help prevent someone else from pretending to be you.

And here are a few useful things to note:

•   25 states now participate in the IRS’s new, free Direct File program, so if you live in one of those states, you can potentially save hundreds of dollars in fees filing directly with the IRS online. (Though you can’t use Direct File if you have gig, rental or business income.)

•   Direct File is different from Free File, which allows people with an adjusted gross income of $84,000 or less to file with free guided tax software.

•   While there are plenty of tax preparers and accountants happy to have your business, if you want to go it alone and don’t meet the requirements for Direct File or Free File, you can pay for a tax software package or use the IRS’s free fillable forms (you won’t get as much help with those, though.) Mailing in a paper return adds to the processing time, so try to avoid it.

•   An extension on your filing deadline is not an extension to pay. If you need extra time and anticipate owing taxes, you’ll still need to estimate your bill and make a payment by the April 15 filing deadline. Otherwise you’ll pay interest (the rate is 7% right now) and penalties.

•   If you are expecting a refund, you should get it within three weeks if you file electronically and choose direct deposit.

So what? Tax season can be, um, taxing (we couldn’t resist). But it’s one of the best opportunities you’ll have in 2025 to take stock of your financial situation and make changes for the coming year. It’s also a great time to consider next year’s return, and whether you want to update your tax withholding with a new W-4. We explore that further in our piece on tax refunds here.

Related Reading

•   Best Tax Software of 2025: NerdWallet’s Top Picks (NerdWallet)

•   Beginner’s Guide on How to File Taxes (SoFi)

•   End Direct File on ‘Day One,’ Say House Republicans (Thomson Reuters)

photo credit: iStock/simpson33

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

OTM20250127SW