Tax Filing Timeline: When Does E-File Start?

The IRS will begin accepting individual returns on Monday, Jan. 27, 2025

More and more taxpayers are leaning towards the convenience and speed of electronic filing (e-file) leading to many of us wanting to know exactly when e-filing starts. The IRS will begin accepting individual returns on Monday, January 27, 2025. Direct File will be available to a limited number of states on January 27th. 

When Does E-Filing Start for the IRS?

The exact date can vary slightly every year due to various tax updates and new laws. This year, individual returns will be accepted on Monday, January 27, 2025. For business, e-file opened on January 15^th at 6:00 am. Direct File will be available to eligible taxpayers in 25 states to file their taxes directly with the IRS which includes 12 states that were part of the IRS pilot last year. Please visit the IRS website to find out more about specific states that are eligible.

Early Preparations: What Can You Do Before E-Filing Opens?

There are several things you can do to prepare for tax season before e-file officially opens:

1. Gather Your Client’s Tax Documents: Collect all the necessary paperwork you’ll need to help your clients file including:
   1. W-2s
   2. 1099s
   3. Interest statements
   4. Receipts for deductions (e.g., medical, educational, charitable donations)

2. Check for Tax Law Changes: It’s a good idea to review any tax law updates especially since a new administration has been elected—which could impact your filing. The IRS often releases updates regarding new credits, deductions, or changes to filing requirements. Staying informed can help you avoid surprises. We will update our systems and do our best to keep you informed via Taxing Subjects, the Drake Software blog.
3. Try to stay ahead: Begin preparing your clients’ returns before the e-filing system opens so you are ready to hit the submit button once the IRS officially opens its filing system.

Can you e-file prior year returns?

You can usually e-file the current tax year and the two prior years, except during IRS closing periods. When tax yar 2024 e-filing opens, you can file for 2024, 2023, and 2022. However, if an extension is needed, it can generally only apply to the current tax year.

While waiting for e-filing to open, take the time to gather all the necessary documents, review potential changes in tax laws, and get familiar with your tax preparation software or professional service. By getting an early start, you’ll be ready to file as soon as the IRS begins accepting returns.

Understanding the timeline for e-filing helps you meet your tax filing obligations without stress and can help take advantage of the many benefits that come with submitting your return electronically. So, get ready and prepare to file!

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– Article provided by Taxing Subjects.