Filing season reminders, tax credits and tax scams awareness

• Find tax records with the IRS Individual Online Account
• Tax Time Guide provides updates that may affect 2024 tax returns
• Prevent common errors when filing a tax return
• Check eligibility for these credits
• Learn about the IRS Dirty Dozen
• More information

Find tax records with the IRS Individual Online Account

The IRS has made it easier for taxpayers to file their taxes by adding information return documents to their IRS Individual Online Account. Now taxpayers can find important tax records in one digital location.

IRS enhances services and convenience for taxpayers

Tax Time Guide provides updates that may affect 2024 tax returns

IRS provides updated information to help taxpayers file an accurate federal tax return with the Tax Time Guide series.

IRS Tax Time Guide helps taxpayers when filing a return

Prevent common errors when filing a tax return

Knowing what common errors to look out for can help taxpayers be better prepared when they file their federal tax return.

Errors taxpayers should watch out for

Check eligibility for these credits

Earned Income Tax Credit:  Workers can use the credit to reduce their taxes or increase their refund.

Child Tax Credit: Families with qualifying children get a tax break. 

Saver's Credit: Those who make eligible contributions to an IRA or employer-sponsored retirement plan may qualify for this credit. 

Education credits, deductions and savings plans: These can help taxpayers with their expenses for higher education..

Energy Efficient Home Improvement Credit: Homeowners may qualify if they made qualified energy-efficient improvements.

Learn about the IRS Dirty Dozen

Each year, the IRS Dirty Dozen lists common scams that taxpayers may encounter anytime but many schemes peak during tax season as people prepare their returns or hire someone to help with their taxes.

The Dirty Dozen represents the worst of the worst tax scams

More information

IRS provides help for taxpayers online and on social media. 

• Get Ready shares steps to make it easier to file a tax return.
• Let Us Help you has information and resources on a wide range of topics.
• File Your Tax Return has information on how and when to file a tax return.
• Volunteer Income Tax Assistance and Counseling for the Elderly programs offer free basic tax return preparation to qualified taxpayers; IRS-certified volunteers help taxpayers prepare their returns.
• Interactive Tax Assistant guides taxpayers to answers to their tax questions.

IRS Social Media has links to the official IRS accounts on X, Facebook, Instagram, LinkedIn and YouTube.

WASHINGTON — The Internal Revenue Service encouraged taxpayers who have yet to prepare and file their tax returns to consider taking advantage of the many free options available – including Direct File, a free, fast and easy way to file directly with the IRS, now available in 25 states.

In addition to Direct File, IRS Free File also offers free tax preparation software through its partners on IRS.gov. Also, the IRS offers free, in-person, help through its Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) programs.

Direct File

IRS Direct File, the latest filing option for taxpayers, is a web-based service that allows taxpayers to file directly with the IRS for free. It works on mobile phones, laptops, tablets or desktop computers. The system leads taxpayers step-by-step through a series of questions to prepare their federal tax return. Once taxpayers have completed their federal tax return, the Direct File system automatically guides them to complete their state tax filings if they have a state tax obligation.

Direct File began as a pilot program last year and, after receiving overwhelmingly positive reviews from taxpayers, is now available in 25 states.

Direct File features a data import tool that allows taxpayers to automatically import data from their IRS account, including personal information, the taxpayer’s Identity Protection PIN and some information from the taxpayer’s W-2. Live chat is available, and users can opt into additional authentication and verification, which allows customer service representatives to provide more information. In addition, there is a chat bot to help guide users through the eligibility checker.

Taxpayers can use Direct File if they have certain types of income, outlined in more detail in the Direct File fact sheet. Starting this month, taxpayers reporting retirement income, contributions or rollovers can also use Direct File.

Last year Direct File supported taxpayers claiming the Earned Income Tax Credit, the Child Tax Credit and the Credit for Other Dependents.

This year, Direct File will also cover taxpayers claiming the:

• Child and Dependent Care Credit
• Premium Tax Credit
• Credit for the Elderly and Disabled
• Retirement Savings Contribution Credits
• Health Savings Accounts deductions

The Treasury Department estimates that more than 30 million taxpayers are now eligible to use Direct File across the following 25 states: Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington state, Wisconsin and Wyoming.

IRS Free File

Most taxpayers can file electronically for free by using IRS Free File, available only on IRS.gov.

Currently in its 23rd year, IRS Free File offers free tax preparation software from eight companies in the public-private partnership with the IRS. As part of this partnership, tax preparation and filing software partners offer their online products to eligible taxpayers for free.

This year IRS Free File guided tax software products are available to taxpayers with a 2024 adjusted gross income (AGI) of $84,000 or less. IRS Free File also provides fillable forms for use by any taxpayer, regardless of income, who is comfortable preparing their own return. To access these free tools, taxpayers must start from the IRS Free File page on IRS.gov.

Other free options to file tax returns

In addition to Direct File and IRS Free File, the IRS reminds taxpayers that there are other free programs available to help:

• Volunteer Income Tax Assistance/Tax Counseling for the Elderly. Taxpayers can find organizations in their community with IRS certified volunteers that provide free tax help for eligible taxpayers including working families, the elderly, the disabled and people who speak limited English.
• MilTax. A Department of Defense program, MilTax 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.

Beware of scams

Criminals often impersonate IRS employees and sound very convincing when calling taxpayers in aggressive and sophisticated ways. Taxpayers should stay vigilant and be alert to scams when dealing with taxes.

The IRS usually contacts taxpayers with a letter in the mail explaining what they owe and how to question or appeal what they owe. The IRS will not call, text or contact anyone via social media, specifically, to demand immediate tax payment.

If taxpayers are unsure whether they owe money to the IRS, they can view their tax information using their Online Account on IRS.gov.

More taxpayers in more states will be able to file their 2024 federal taxes directly with the IRS for free. This filing season, Direct File includes new features to make filing taxes quicker and easier.

With IRS Direct File, eligible taxpayers can:

• Prepare and file a 2024 federal tax return online – for free – in English or Spanish
• Import data from their IRS account, including personal information, their IP PIN and some information from their W-2, if it’s available
• Add their tax information with step-by-step guidance
• Connect with their state filing tool to file for free
• Get help in English and Spanish in real-time live chat with IRS customer support specialists for Direct File
• Use smartphones, laptops, tablets and desktop computers to file online

Participating states where Direct File is available
This year, Direct File is open to eligible taxpayers in 25 participating states to file their taxes directly with the IRS for free: 12 states that were part of the pilot last year, plus 13 new states where Direct File is available in 2025.
Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington state, Wisconsin and Wyoming.

Eligibility
Taxpayers who lived and worked in one of the 25 participating states for all of 2024 can use Direct File if they report:

• W-2 wage income
• SSA-1099 Social Security income
• 1099-G unemployment compensation
• 1099-INT interest income
• 1099-MISC for Alaska residents reporting the Alaska Permanent Fund Dividend

Starting March 5, 2025, taxpayers can use Direct File to report:

• 1099-R retirement income
• Contributions to and most distributions from employer-sponsored retirement plans, like a 401(k), pension, annuity, 403(b), or governmental 457(b)
• Direct rollovers from one employer-sponsored retirement plan to another, or to an IRA

Taxpayers can't use Direct File if they had other types of income, such as gig economy, rental income or business income.

Credits
Taxpayers can use Direct File to claim these credits:

• Earned Income Tax Credit
• Child Tax Credit
• Credit for Other Dependents
• Child and Dependent Care Credit
• Premium Tax Credit for Marketplace Health insurance coverage
• Credit for the Elderly or the Disabled
• Retirement Savings Contributions Credit

Taxpayers who live in Washington state will be guided to the state’s website to apply for the Working Families Tax Credit.

Deductions
Taxpayers can use Direct File to claim these deductions:

• Standard deduction
• Student loan interest
• Educator expenses
• Health Savings Account contributions

Taxpayers can't use Direct File if they itemize deductions or claim other tax deductions.

How to file using IRS Direct File

1. Go to directfile.irs.gov to check your eligibility and see if Direct File is a good fit for you. If you’re not eligible, we’ll connect you to alternative filing options.
2. Eligible taxpayers who have a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN), may sign in or create an account to verify their identity to access Direct File. The IRS lets you access most tax tools with one account using the same login and password. If you already have an IRS online account, you can use the same sign-in for Direct File.
3. Complete your return – Direct File will guide you through a series of questions to help you file quickly and easily. You can get support from dedicated IRS customer support specialists through a live chat feature if you need help.
4. Review your return, input your payment or refund information, and submit your federal return! Direct File will email you once your return has been accepted by the IRS.
5. File your state return. If you need to file a state return, Direct File will connect you with your state’s online free filing tool to help you get started. In many cases, Direct File users can even import their federal return data directly to their state tool.

Save time importing tax information directly from the IRS
Direct File saves taxpayers time by allowing them to import certain data from their IRS account. Taxpayers can review and edit the information before the return is submitted to the IRS.

Direct File can import the following information:

• Employment and federal wage information from your Form W-2, if it’s available
• Identity Protection PIN (IP PIN), if you use one
• Your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
• Your name, date of birth, mailing address, email address and phone number

Income limits for Direct File
While there are no income limits for Direct File, additional limitations apply to taxpayers with household wages exceeding $125,000. Currently, Direct File does not support all tax situations for all taxpayers.

You can’t use Direct File if:

• Your wages exceed $200,000 ($168,600 if you had more than one employer)
• You file as Married Filing Jointly, and your spouse’s wages are more than $200,000 ($168,600 if your spouse had more than one employer)
• You file as Married Filing Jointly, and you and your spouse's wages are more than $250,000
• You file as Married Filing Separately, and your wages are more than $125,000

Get help with Direct File
Taxpayers can get help with technical support or basic tax law questions from IRS customer service representatives through live chat in English and Spanish.

You can chat live or request a callback from an IRS Direct File customer support specialist when you’re logged in.

New this year: You can opt into additional authentication and verification, which will allow customer support specialists to provide more detailed support.

Questions or issues unrelated to Direct File are routed to other IRS support staff.

Find out more about Direct File

• Learn more about how Direct File works
• Sign up for the Direct File newsletter
• Publication 5916, File for fee with IRS Direct File
• Publication 5917, IRS Direct File- What you need to know
• Publication 5949, Helpful tips to prepare you for IRS Direct File
• Publication 5952, Are you ready to file with IRS Direct File?

Explore other free filing options

IR-2025-30, March 10, 2025

WASHINGTON — The Internal Revenue Service encouraged taxpayers who have yet to prepare and file their tax returns to consider taking advantage of the many free options available – including Direct File, a free, fast and easy way to file directly with the IRS, now available in 25 states.

In addition to Direct File, IRS Free File also offers free tax preparation software through its partners on IRS.gov. Also, the IRS offers free, in-person, help through its Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) programs.

Direct File

IRS Direct File, the latest filing option for taxpayers, is a web-based service that allows taxpayers to file directly with the IRS for free. It works on mobile phones, laptops, tablets or desktop computers. The system leads taxpayers step-by-step through a series of questions to prepare their federal tax return. Once taxpayers have completed their federal tax return, the Direct File system automatically guides them to complete their state tax filings if they have a state tax obligation.

Direct File began as a pilot program last year and, after receiving overwhelmingly positive reviews from taxpayers, is now available in 25 states.

Direct File features a data import tool that allows taxpayers to automatically import data from their IRS account, including personal information, the taxpayer’s Identity Protection PIN and some information from the taxpayer’s W-2. Live chat is available, and users can opt into additional authentication and verification, which allows customer service representatives to provide more information. In addition, there is a chat bot to help guide users through the eligibility checker.

Taxpayers can use Direct File if they have certain types of income, outlined in more detail in the Direct File fact sheet. Starting this month, taxpayers reporting retirement income, contributions or rollovers can also use Direct File.

Last year Direct File supported taxpayers claiming the Earned Income Tax Credit, the Child Tax Credit and the Credit for Other Dependents.

This year, Direct File will also cover taxpayers claiming the:

• Child and Dependent Care Credit
• Premium Tax Credit
• Credit for the Elderly and Disabled
• Retirement Savings Contribution Credits
• Health Savings Accounts deductions

The Treasury Department estimates that more than 30 million taxpayers are now eligible to use Direct File across the following 25 states: Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington state, Wisconsin and Wyoming.

IRS Free File

Most taxpayers can file electronically for free by using IRS Free File, available only on IRS.gov.

Currently in its 23rd year, IRS Free File offers free tax preparation software from eight companies in the public-private partnership with the IRS. As part of this partnership, tax preparation and filing software partners offer their online products to eligible taxpayers for free.

This year IRS Free File guided tax software products are available to taxpayers with a 2024 adjusted gross income (AGI) of $84,000 or less. IRS Free File also provides fillable forms for use by any taxpayer, regardless of income, who is comfortable preparing their own return. To access these free tools, taxpayers must start from the IRS Free File page on IRS.gov.

Other free options to file tax returns

In addition to Direct File and IRS Free File, the IRS reminds taxpayers that there are other free programs available to help:

• Volunteer Income Tax Assistance/Tax Counseling for the Elderly. Taxpayers can find organizations in their community with IRS certified volunteers that provide free tax help for eligible taxpayers including working families, the elderly, the disabled and people who speak limited English.
• MilTax. A Department of Defense program, MilTax 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.

Beware of scams

Criminals often impersonate IRS employees and sound very convincing when calling taxpayers in aggressive and sophisticated ways. Taxpayers should stay vigilant and be alert to scams when dealing with taxes.

The IRS usually contacts taxpayers with a letter in the mail explaining what they owe and how to question or appeal what they owe. The IRS will not call, text or contact anyone via social media, specifically, to demand immediate tax payment.

If taxpayers are unsure whether they owe money to the IRS, they can view their tax information using their Online Account on IRS.gov.

Inside This Issue

1. Second quarter interest rates unchanged
2. Technical Guidance

1.  Second quarter interest rates unchanged

The IRS announced no change in interest rates beginning April 1. The interest rates are computed from the federal short-term rate determined during January 2024. See Revenue Ruling 2025-07 for details.

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2.  Technical Guidance

Notice 2025-16 provides for adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code for the 2025 tax year. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States.

Revenue Procedure 2025-17 adds Ukraine, Iraq, Haiti, and Bangladesh to the list of waiver countries for tax year 2024 for which the minimum time requirements are waived. Generally, U.S. citizens or resident aliens living and working abroad are taxed on their worldwide income.

Revenue Ruling 2025-07 provides the second quarter interest rates for 2025, including the rates for underpayments and overpayments. The rates for interest determined under Section 6621 of the code for the calendar quarter beginning April 1, 2025, will be 7 percent for overpayments (6 percent in the case of a corporation), 7 percent for underpayments, and 9 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 4.5 percent.

WASHINGTON — The Internal Revenue Service today announced interest rates will remain the same for the calendar quarter beginning April 1, 2025.

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.

Revenue Ruling 2025-7 announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2025-13, dated March 24, 2025.

Revenue Procedure 2025-17 adds Ukraine, Iraq, Haiti, and Bangladesh to the list of waiver countries for tax year 2024 for which the minimum time requirements are waived. Generally, U.S. citizens or resident aliens living and working abroad are taxed on their worldwide income. However, if their tax home is in a foreign country and they meet either the bona fide residence test or the physical presence test, they can choose to exclude from their income a limited amount of their foreign earned income (up to $126,500 for 2024). Both the bona fide residence test and the physical presence test contain minimum time requirements. Rev. Proc. 2025-17 provides a waiver under section 911(d)(4) for the time requirements for individuals electing to exclude their foreign earned income who must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country.

WILL BE IN IRB: 2025-13 DATED: March 24, 2025

Notice 2025-16 provides for adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code for the 2025 tax year. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States. If the limitation on housing expenses is higher for the 2025 tax year than the adjusted limitations on housing expenses provided in Notice 2024-31, qualified taxpayers may apply the adjusted limitations in this notice for the 2025 tax year to their 2024 tax year.

WILL BE IN IRB: 2025-13 DATED: March 24, 2025

Inside This Issue

1. O’Donnell retires after notable career; Krause to serve as acting IRS Commissioner
2. March 3 is deadline for many farmers and fishers; disaster areas have additional time
3. IRS Individual Online Account tool adds tax documents, improves services and convenience for taxpayers
4. Dirty Dozen tax scams for 2025: IRS warns filers to watch out for dangerous threats
5. Tax Time Guide: Track refund status using the Where’s My Refund? tool

1.  O’Donnell retires after notable career; Krause to serve as acting IRS Commissioner

The Department of Treasury announced that IRS Chief Operating Officer Melanie Krause will become acting IRS Commissioner following the retirement announcement of Doug O’Donnell. O’Donnell, the IRS deputy Commissioner who has been acting as the agency’s Commissioner since January, will retire on Friday, Feb. 28. Krause will become the nation’s acting Commissioner and assume the position of deputy Commissioner.

“The IRS has been my professional home for 38 years,” O’Donnell added. “I care deeply about the institution and its people, and am confident that Melanie will be an outstanding steward of the Service until a new Commissioner is confirmed.”

Krause began her IRS career in October 2021 as the Chief Data & Analytics Officer. Krause spent 12 years in the federal oversight community, including the Government Accountability Office and the Department of Veterans Affairs Office of Inspector General prior to joining the IRS.

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2.  March 3 is deadline for many farmers and fishers; disaster areas have additional time

Tax pros: Your farmer and fisher clients who chose to forego making estimated tax payments by Jan. 15 must file their 2024 federal income tax return and pay all taxes due by March 3. Because the customary March 1 deadline falls on Saturday this year, the deadline is extended by two days. The deadline allows farmers and fishers to avoid any estimated tax penalties. Those who made a qualifying payment by Jan. 15, 2025, can wait until April 15 to file and still avoid estimated tax penalties. For details, see Publication 505, Tax Withholding and Estimated Tax.

Disaster-area taxpayers, including farmers and fishers, have more time to file and pay. Taxpayers in the entire states of Alabama, Florida, Georgia, North Carolina and South Carolina, and parts of Alaska, New Mexico, Tennessee, Virginia and West Virginia have until May 1.

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3.  IRS Individual Online Account tool adds tax documents, improves services and convenience for taxpayers

The IRS is simplifying the tax filing process for taxpayers by integrating information return documents into their IRS Individual Online Account. This will centralize tax records in a single digital location. The first information returns to be added are Form W-2, Wage and Tax Statement and Form 1095-A, Health Insurance Marketplace Statement. These forms will be accessible for tax years 2023 and 2024 under the Records and Status tab in the taxpayer’s Online Account. 

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4.  Dirty Dozen tax scams for 2025: IRS warns filers to watch out for dangerous threats

The IRS kicked off the annual Dirty Dozen list of tax scams with a warning for taxpayers, businesses and tax professionals to be aware of evolving schemes designed to steal sensitive taxpayer information. The IRS's annual Dirty Dozen campaign lists 12 scams and schemes that threaten taxpayers. While the Dirty Dozen is not a legal document or a formal listing of agency enforcement priorities, the education campaign aims to raise awareness and safeguard taxpayers and tax pros from common tax scams and schemes.

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5.  Tax Time Guide: Track refund status using the Where’s My Refund? tool

Tax pros: Encourage your clients to use the Where’s My Refund? tool on IRS.gov to verify receipt and monitor refund status of their 2024 tax returns. The Where’s My Refund? tool allows taxpayers who file electronically to check status within 24 hours of filing. The tool is accessible around-the-clock and provides taxpayers with a quick and simple method of obtaining information without having to contact the IRS. Additionally, taxpayers can use the tool to view data regarding returns from 2022 through 2024. Through the IRS2Go mobile app users can access the mobile-friendly tool, find free tax help and make payments.