A new year... a new tax season.
As 2025 begins, so does a new tax season. Benjamin Franklin said it best when he noted that "nothing in this world can be said to be certain, expect death and taxes."
When to file
This year, filing season opens on January 27th and the Internal Revenue Service (IRS) will begin processing e-filed returns as early as January 29th. Tax returns are due by Tuesday, April 15, 2025. Extensions are available, if needed, however an extension is only an extension of time to file, not time to pay. Those who extend their returns will need to estimate whether they have any remaining tax due by April 15, 2025.
How to file
Although preparing your taxes can be overwhelming, there are several options for filing. This year will be the second year the IRS has offered the Direct File program, which allows taxpayers to file their tax information directly on the IRS website. Oregon is one of the 25 states that uses the same information from Direct File to also file your state return for free. There are limitations, but most students are eligible to use this free service. You can find details here. If Direct File is not for you, the IRS also provides a list of trusted filing partners each year. You can find the latest one here. And, of course, tax preparation services are also available for those who prefer to work with an advisor. For taxpayers who meet certain income requirements, free, in person filing assistance is available through CASH Oregon.
Managing the Stress of Tax Season
Although we always know another tax season is coming, many taxpayers see it as unpredictable. Mary Marshall, professor of accounting at Portland State University, conducted research that studies how taxpayers feel about completing and filing tax returns and dealing with the IRS. It is common to hear the taxpayers express strong negative feelings as they navigate what feels like a complicated system. In fact, one of her recent studies found that taxpayers report high levels of frustration and are overwhelmed, especially when they have to deal with the IRS.
Over the next few months, Mary will do her best to answer some of the most common questions, dispel myths about taxation, and ease your fears about tax season 2025. She will bring practical tips, answer common questions and share insights from her research, which often addresses concerns about trust, fairness, and uncertainty. At the end of the day, most people just want to make sure they file correctly (and pay as little as legally possible). She hopes she can help sort through the complexity around the tax law, the confusing suggestions floating around social media, and the fear of accidentally doing something wrong, which leaves many people feeling confused and overwhelmed.
If you you have specific tax questions, please email Mary at memarshall@pdx.edu. She maybe able to offer insight in a future installment this tax season.