Tax season officially began in the US on Monday, January 27, as the US Internal Revenue Service (IRS) kicked off the 2025 filing season.
Sponsored
After submitting their annual returns, eligible taxpayers and crypto investors in 25 states can receive refunds on overpaid taxes.
IRS Starts Tax Return Season
The Internal Revenue Service (IRS) announced that the nation’s 2025 tax season will begin on Monday, January 27.
Direct File will be available to eligible taxpayers in 25 states on the first day of the filing season, allowing them to file taxes directly with the IRS for free.
This includes 12 states from last year’s pilot program—Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming—along with 13 new states: Alaska, Connecticut, Idaho, Illinois, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin.
According to the announcement, Americans under 65 who earn more than $14,600 must file a return.
More than 140 million individual tax returns for tax year 2024 are expected to be filed before the federal deadline on Tuesday, April 15 (Tax Day).
Numbers of Crypto Holders Increase
As cryptocurrency transactions increase in popularity, the IRS is also placing focus on reporting
any income from digital asset transactions.
Those who sold, exchanged, or transferred digital assets, including cryptos, stablecoins, or NFTs, should use Form 8949 to calculate capital gains or losses.
As of 2024, the Federal Reserve estimated that approximately 18 million, or 7% of American adults, held or used cryptocurrency in 2023. However, more recent and comprehensive studies suggest that crypto adoption in the U.S. may be higher, with up to 15.5% of American adults , or about 52 million people, holding crypto in 2024, marking a significant increase from 2023.
Why This Matters
Surveys suggest that 37% of US taxpayers rely on their IRS refunds to cover essential expenses, with the figure rising to 50% among millennials, one of the largest demographic groups alongside Gen Z among crypto holders.
Check out trending DailyCoin’s articles:
Why Is the Crypto Market Down Today?
SEC vs Ripple: Trump Appoints New SEC, CFTC Chairs
