Tax Day 2025: Emotional And Financial Impacts
Every year, the thought of tax day causes stress for millions of people in the United States. One survey reports that 25% of Gen Z have sought therapy over tax-related stress, and 38% of Millennials have been brought to tears over tax stress. Taxes can also affect people nearing retirement as they make decisions that can affect their income once they stop working. Below, we’ll discuss tax day, the potential emotional and financial impacts of taxes, some recent changes to the tax code, and ways to get help for the stress that filing taxes can cause.
When is tax day in 2025?
The next tax date falls on Tuesday, April 15, 2025. However, most people can file an extension to complete their taxes by October 15. All unpaid taxes are still due by April 15, but people can get an extension to finish their tax forms. The tax filing deadline may be different for state taxes in certain places. Also, people who live outside the United States most of the year often have an automatic tax deadline extension until June 15, 2024. However, the due date for unpaid taxes is usually still April 15 if you want to avoid penalties or interest.
What’s new for tax returns in 2025?
When filing taxes in 2025, individuals are actually declaring their income from 2024. There have been a few recent changes that people might need to be aware of as they plan for filing taxes, as the tax brackets have changed somewhat from 2023. The following are the new tax brackets:
2024 tax rate | Single | Married, filing jointly | Married, filing separately | Head of household |
|---|---|---|---|---|
10% | $0 to $11,600 | $0 to $23,200 | $0 to $11,600 | $0 to $16,550 |
12% | $11,601 to $47,150 | $23,201 to $94,300 | $11,601 to $47,150 | $16,551 to $63,100 |
22% | $47,151 to $100,525 | $94,301 to $201,050 | $47,151 to $100,525 | $63,101 to $100,500 |
24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 | $100,501 to $191,950 |
32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,725 | $191,951 to $243,700 |
35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,726 to $365,600 | $243,701 to $609,350 |
37% | $609,351 or more | $731,201 or more | $365,601 or more | $609,351 or more |
Another change that can affect people’s taxes is that there is a new standard deduction of $14,600 for single filers or married people who file separately. For married couples who file jointly, the new deduction is $29,200, and for single heads of household, the standard deduction is $21,900. These deductions may reduce the amount of taxes you owe.
How does filing an income tax return affect people?
Tax day can affect people in numerous ways. Individuals may experience both financial and emotional repercussions related to filing taxes correctly or incorrectly and paying enough in taxes, including estimated tax payments.
Potential financial impacts of filing your income tax
Some people may end up owing money to the Internal Revenue Service (IRS). This may come as a surprise to some individuals, and it can significantly affect their ability to pay other bills or maintain savings. In some cases, people set up a payment plan with the IRS, which can affect their monthly budget until the balance is paid.
Potential emotional impacts of filing income taxes
For some people, tax day can have a significant emotional impact as well. Those who owe money may experience stress if they’re concerned about being able to pay their rent or mortgage or other bills. Even for people who don’t owe money to the IRS, fear of making a mistake on their federal tax return may lead to stress.
Getting help with tax returns
When it comes to the technical aspect of filing a tax return, it may be helpful to speak to a licensed tax professional. Those who cannot afford such services might benefit from free tax assistance in their community or online. There are typically free or low-cost options available in many communities for people facing economic hardship. These services can sometimes help individuals find new deductions, which may lead to a tax refund for some.
Emotional support for stress related to tax day
Taxes can create such significant stress that some people may benefit from talking to a mental health professional. A therapist may be able to offer strategies to help mitigate stress, which may be especially helpful during the time leading up to tax day.
Online counseling for stress from filing a tax return
Some people may live in an area where there are few mental health professionals. Other people might not feel comfortable talking about finances or personal stressors face-to-face in a traditional office setting. In these and other cases, online therapy may be a more comfortable and convenient alternative.
With online therapy, you can connect with a licensed therapist from home or anywhere with an internet connection. You can communicate with your therapist remotely by phone, video, or live chat at times that work for you. Online therapy also tends to be more affordable than in-office therapy without insurance, which may be especially important for people who are facing financial challenges related to taxes.
Does online therapy work?
In recent years, a number of peer-reviewed studies have suggested the potential effectiveness of online therapy. For example, findings from one study indicate that internet-based cognitive behavioral therapy helped reduce symptoms of depression, generalized anxiety disorder, and substance use disorder in participants. An online therapist may also be able to provide evidence-based relaxation techniques that can be helpful throughout the tax filing process and during the period of waiting for approval from the IRS.
If you are struggling with substance use, contact the SAMHSA National Helpline at (800) 662-4357 to receive support and resources. Support is available 24/7.
Takeaway
Frequently asked questions
Below are some frequently asked questions related to tax day and federal income tax returns.
How early can you file income tax returns in 2025?
The IRS begins accepting returns in late January. As long as you have all the required forms, you can usually file in January. Some people may have to wait until February, as employers often have until January 31 to send out forms to employees and independent contractors.
Do taxes influence personal decisions?
According to the Stanford Institute for Economic Policy Research, taxes can influence people’s decisions regarding budgeting and how much they work. Taxes can also influence decisions about giving to charity and moving to another state.
Why is tax day different in some years?
If it falls on a weekend or a legal holiday, tax day is usually postponed until the next business day after that weekend or holiday. This usually happens with federal and statewide legal holidays.
What’s the hardest part of filing?
For some people, the hardest part of filing taxes may be determining eligibility for tax credits, such as the Additional Child Tax Credit or the Credit for Other Dependents. However, for other people, emotional stress may be more difficult than any of the technical parts of filing individual income tax returns.
What happens if you don't file taxes?
If you don’t file taxes during the tax season and miss important tax deadlines, you may owe taxes to the government for the late fee. If you need a tax extension, file it before the federal tax deadline, or you may owe fees. If your tax bill is too high and you’re worried about paying taxes this year, you can file directly with the IRS electronically on IRS Free File for a payment plan. They will allow you to make payments via direct deposit from your bank account.
You can make a third payment and even a fourth payment if you want to cut your total owed amount down so you don’t miss the payment deadline, regardless of when you want to pay estimated taxes. Most taxpayers are asked to pay the payment plan within six months to a year, but you can talk to an IRS agent about what plan works for you in this tax year based on your personal income taxes and tax liability. For business tax returns, the rules may be different. Talk to a state tax authority for support to ensure your tax concerns are properly addressed.
How much tax return per child do people get in 2025?
The maximum credit you can gain per child on your 2025 tax return is 2,000 dollars. Some people may get less, depending on tax withholding criteria. Filers qualify for extra credits in federally declared disaster areas in some cases. Talk to a tax representative from the IRS or a third party for support and guidance in this process.
When can I file my taxes?
You can start filing your taxes on January 27th, 2025. Some people may qualify for early filing. If unsure, you may go through a third-party tax preparation service to file early.
Can I file taxes with no income?
Filing taxes with zero income is legal and may be a smart choice. By filing taxes, you’re showing the IRS what you’ve been up to, which leaves a paper trail of your employment and income history. You may file taxes under a different form if you have no W-2 income but work a freelance 1099 job. You must still report income on your tax forms if you make money from donations or another source. You can talk to a tax advisor for support.
What income is not taxable?
Welfare benefits, Social Security payments, third-party sick pay, and worker’s compensation are not taxable. Talk to a tax advisor about donations and other forms of income you’ve received. Some charitable donations up to a certain amount might not be taxable. In addition, if you’re an expat living overseas, you may not have to pay taxes in the US, so your income in the other country might not be taxable in the US. However, talk to an advisor about your specific situation.
Can I skip a year of filing taxes?
You will lose a refund if you do not file taxes. In addition, evading paying your taxes due to having to pay the IRS is a crime. You must file taxes if you owe taxes. If you do not owe taxes or do not have an income or a tax return, you do not have to file. However, your refund may be lost within three years if you do not file to receive it. Talk to a tax advisor or lawyer to learn more about the laws surrounding tax filing.
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