The United States Internal Revenue Service (IRS) will open up tax filing for the 2024 tax year on January 27, 2025. While this comes with trepidation for some filers, others may find that knowing what to expect in this filing season helps to reduce the stress they’re feeling.
For most filers, personal income tax returns must be filed by April 15, 2025. There are a few exceptions to this. People who were affected by Hurricane Milton or Helene have until May 1, while people who were affected by California wildfires have until Oct. 15.
Penalties and fees apply for late returns
People who don’t file their taxes by the deadline may have to pay fees and penalties. There’s a $485 minimum penalty for those who are 60 days late. This amount can vary based on the amount of tax owed on the return. Individuals who won’t be able to file their return on time can apply for an extension, which may mitigate the penalties that are due.
Cryptocurrency and meme stocks
People who sold cryptocurrency or meme stocks may be subject to capital gains taxes. Long-term investors, which are those who held the investments over a year, are responsible for taxes up to 20%. Short-term investors could be responsible for taxes up to 37%.
Some filers who have more complex tax returns may recognize that they’re going to have to deal with the IRS because they owe more than they can pay right away. Working with someone familiar with tax matters is beneficial so filers can learn their options and determine how to proceed.