Important tax deadlines for January and February. January 10: Employees Who Work for Tips – If you received $20 or more in tips in December, report them to your employer. January 15: Farmers and Fishermen – Pay estimated tax for 2024. If not, you must file your 2024 return and pay all tax due by March 3, 2025, to avoid penalties. January 31: Businesses – File Form 1099-NEC for nonemployee compensation paid in 2024 and issue annual statements to recipients of certain payments. Individuals – If you missed the January 15 estimated tax payment deadline, you can file your 2024 return and pay the balance by January 31 to avoid penalties.

The IRS recently announced that many people who qualified to claim the Recovery Rebate Credit on their 2021 tax returns failed to do so. To correct this, the IRS will automatically send approximately one million payments to people who were eligible but did not claim the credit. Most payments will arrive by the end of January. The IRS will use direct deposit information from 2023 tax returns or mail checks to the addresses on record. If your banking information has changed since your 2023 return, the IRS will mail you a check instead. While the vast majority of people who qualified for Economic Impact Payments (stimulus payments) received their full amount, a small number did not claim it properly. If you think you were eligible but did not file a 2021 tax return, you have until April 15, 2025, to do so and claim your refund.

The IRS encourages everyone to get an identity protection number (IP PIN) for the 2025 tax filing season. An IP PIN is a unique code that you include on your tax return and other IRS forms to prevent scammers from filing fraudulent tax documents in your name. The easiest way to obtain an IP PIN is to create an online IRS account. You can also request one by mail by filing IRS Form 15227. The IP PIN registration system was temporarily unavailable as of November 23, 2024, due to maintenance but was scheduled to reopen on January 6, 2025. Remember, an IP PIN lasts only one year, so you must get a new one annually. Once you receive your 2025 IP PIN, ensure you include it on your 2024 tax return to prevent fraud.