The IRS has announced a one-day extension for taxpayers with federal tax deadlines originally set for Thursday, January 9, 2025. The new deadline is Friday, January 10, 2025.
This extension comes in response to a Presidential Proclamation issued on December 29, 2024, declaring January 9 as a National Day of Mourning to honor James Earl Carter, Jr., the 39th President of the United States.
Here’s what the extension covers:
Tax Returns: Any federal tax return that would have been due on January 9, 2025.
Tax Payments: Federal tax payments, including income, payroll, or excise taxes, originally required by that date.
Tax Deposits: Federal tax deposits, including those processed through the Electronic Federal Tax Payment System (EFTPS).
The extension provides taxpayers an extra day to ensure compliance with their federal tax obligations without facing penalties.
If you have returns or payments due on January 9, take advantage of this extended deadline to file or pay by January 10, 2025.
If you underpaid taxes in 2024, consider making a fourth-quarter estimated tax payment by Jan. 15, 2025, to avoid penalties.
The U.S. tax system requires payments throughout the year via paycheck withholdings or quarterly estimated payments. Missing a quarterly payment may lead to penalties when filing your 2025 return.
Who Needs to Pay?
Self-employed individuals or independent contractors.
Those who owed taxes last year and may owe again.
Households with two earners or additional income sources like dividends.
Taxpayers with complex financial situations or inadequate withholding.
What Income is Taxed? Taxable income includes side jobs, gig work, unemployment benefits, digital assets (e.g., cryptocurrency), year-end bonuses, stock dividends, and capital gains.
How to Pay Payments can be made through the IRS Online Account, Direct Pay, EFTPS, or by check to “United States Treasury.”
Making a payment now may reduce or eliminate penalties. Use tools like the IRS The Tax Withholding Estimator or Form 1040-ES to calculate your estimated payment.
Plan ahead and take steps to avoid surprises during the upcoming tax season.
The IRS annually adjusts over 60 tax provisions for inflation to prevent “bracket creep,” where inflation, not income growth, pushes taxpayers into higher brackets or reduces deductions. Since 2018, the IRS has used the Chained Consumer Price Index (C-CPI) for more accurate adjustments. For tax year 2025, filed in 2026, tax parameters will rise by an average of 2.8%, ensuring fairness amid inflation.
Revenue Procedure 2024-40 PDF provides detailed information on adjustments and changes to more than 60 tax provisions that will impact taxpayers when they file their returns in 2026.
Federal Tax Rates and Brackets for 2025
The tax rates remain unchanged, but income thresholds have been adjusted for inflation to prevent “bracket creep.” Here’s how they break down for different filing statuses:
