Could the buyout plan offered to almost 2.3 million federal workers affect the Internal Revenue Service and when you get your 2025 tax refund?
Last week, a federal judge halted the Trump administration “deferred resignation” plan that would give workers eight months’ worth of pay and benefits to leave their jobs. The White House previously stated the goal was a 5% to 10% reduction in the total workforce.
This week, the court lifted the temporary freeze.
In total, about 75,000 workers took the deal, according to the U.S. Office of Personnel Management (OPM). That’s around 3% of all civil federal workers.
On Tuesday, President Donald Trump, flanked by Elon Musk, signed an executive order directing “large-scale reductions in force.” The White House also has said that layoffs and furloughs were likely if the buyout plan didn’t meet the target.
Here’s what we know about the buyout and the 2025 tax season.
Will Trump’s federal worker buyouts affect the IRS? How will the 2025 tax season be affected?
IRS employees who accepted the deal have been told they’ll stay on the job through May 15. The agency says the work is essential to this tax season.
IRS workers with positions within Taxpayer Services, Information Technology and the Taxpayer Advocate Service cannot be placed on administrative leave until May.
Most other workers, according to an OPM email, will work through Feb. 28, and start the paid leave on March 1.
When is the federal tax deadline in 2025?
April 15 is the last day you can file without an extension. Unless the date is a weekend or holiday, Tax Day is always April 15.
Can I file my taxes for free?
Federal taxes can be filed for free with some tax preparers or online.
The IRS Direct File is available in 25 states. The program, which offers free online tax filing directly with the IRS, is not available in Mississippi this year.
In a post on X, Musk suggested that he “deleted” the program as part of a war on government overspending he’s carrying out as the head of the Department of Government Efficiency. However, Scott Bessent, the new Treasury secretary, previously had committed to keep it open through the tax season.
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What is a tax refund?
If you paid more taxes than you owe the government, according to the IRS, you get that back. Or you might qualify for a refundable credit.
You have to file your taxes to qualify, and you have three years to claim it.
Where’s my refund?
You can track your federal refund online at https://www.irs.gov/wheres-my-refund.
Or call 800-829-1954 for a current-year refund or 866-464-2050 for an amended return.
Have some information ready:
- Social Security number or individual taxpayer ID number (ITIN).
- Filing status.
- Exact refund amount.
When can I expect my federal refund?
According to the IRS, most refunds will go out within 21 days for online filers and six to eight weeks for paper filers. If the documents aren’t accurate or complete, there could be delays.
But they warn people not to plan a big purchase or assume it’ll pay a bill by a specific date. Wait until the money is in your hands.
Earned Income Tax Credits and Additional Child Tax Credits will start issuing in mid-February.
According to the IRS, it might take a few days after the payment is sent for an online payment to show up in your bank account.
Contributing: Presley Bo Tyler and Daniel de Visé
Bonnie Bolden is the Deep South Connect reporter for Mississippi with Gannett/USA Today. Email her at bbolden@gannett.com.