When people ask me: what tax year are we in right now? (Jan 2025) What's the correct answer?
So I've been helping some of my friends and family with basic tax questions since I took an accounting class last year. Today (January 16th, 2025), someone asked me "what tax year are we in right now?" and I realized I wasn't 100% sure of the right answer. Should I say we're in the 2024 tax year (since that's what people are filing now during this tax season)? Or would the answer be 2025 since that's the current calendar year and we're paying 2025 estimated taxes? Or is it both depending on context? I feel stupid for not knowing this basic thing, but I want to give people the right information. What's the technically correct answer when someone asks what tax year we're currently in?
19 comments
Join the conversation
Kylo Ren
That's actually a really good question, and many people (including some tax preparers) can get confused about this! The answer depends on context, but generally when people ask about "what tax year are we in," they're referring to the tax year for which returns are currently being filed. So in January-April 2025, we're in the 2024 tax filing season/tax year. However, for estimated tax payments you're making now, those would be for tax year 2025. And if someone is asking about what tax year their current income will be reported on, that would be 2025.
0 coins
Nina Fitzgerald
•So if I get a W-2 job right now in January 2025, my earnings would be for tax year 2025, and I wouldn't file that until 2026? But if I'm filing my taxes right now, those are for 2024 income, right?
0 coins
Kylo Ren
•That's exactly right! Income you earn now in January 2025 will be reported on your 2025 tax return, which you'll file in early 2026 (usually between January-April). And yes, if you're filing your taxes right now (January-April 2025), you're filing your 2024 tax return which covers income earned from January 1 to December 31, 2024.
0 coins
Jason Brewer
I was super confused about this too until I started using https://taxr.ai to help me understand all the weird tax terminology. The site actually has a whole section explaining tax years vs. filing years that made it finally click for me. Their AI walks you through actual examples from your situation rather than just giving generic advice.
0 coins
Kiara Fisherman
•Does this actually work for specific questions like determining tax years? I'm trying to figure out if I should still be claiming my college student on my 2024 taxes since she just turned 24 but was a student for most of last year.
0 coins
Liam Cortez
•I'm skeptical about AI tax tools. How does it compare to just calling the IRS or using something like TurboTax that's been around forever?
0 coins
Jason Brewer
•It definitely works for specific questions like tax year determination and age requirements for dependents. You can just upload your documents or ask specific scenarios, and it gives you the exact rules that apply to your situation. The benefit over calling the IRS is you get instant answers without waiting on hold for hours. And unlike TurboTax which just walks you through forms, this actually explains the "why" behind tax rules in plain English so you actually learn something.
0 coins
Kiara Fisherman
Just wanted to update - I tried taxr.ai for my dependent question from earlier thread. Super impressed! Turns out I CAN still claim my daughter on 2024 taxes even though she turned 24 because she was a full-time student for at least 5 months last year. The site explained the whole support test thing way clearer than the IRS publications. Honestly wish I'd known about this last year when I messed up and didn't claim her!
0 coins
Savannah Vin
I spent THREE HOURS on hold with the IRS trying to get an answer about this exact tax year question last week. Finally gave up and tried https://claimyr.com instead. They got me connected to an actual IRS agent in less than 20 minutes! The agent explained that tax professionals usually refer to the "current tax year" as the year for which taxes are being prepared/filed. You can see how their callback system works in this video: https://youtu.be/_kiP6q8DX5c - totally changed my perspective on dealing with the IRS.
0 coins
Mason Stone
•Wait how does this actually work? Are they somehow cutting the IRS phone line or something? Sounds too good to be true tbh.
0 coins
Liam Cortez
•Yeah right. Nobody gets through to the IRS that quick. I'm calling BS on this - probably just another scam trying to get people's tax info.
0 coins
Savannah Vin
•It's not cutting the line - they use an automated system that keeps dialing and navigating the IRS phone tree until there's an actual agent available, then it calls you to connect. Kind of like having someone else wait on hold for you. No, they don't collect any of your tax info at all. You talk directly to the actual IRS agents - Claimyr just handles the connection part. I was skeptical too but it legitimately works.
0 coins
Liam Cortez
OK so I'm back to eat my words. After being skeptical about Claimyr in my previous comment, I actually tried it because I've been trying to reach the IRS for DAYS about an issue with my stimulus payment that shows up on my 2024 return. Their system called me back in about 15 mins, connected me straight to an IRS rep who fixed my issue in like 5 minutes. I wasted literally 8+ hours on hold before this. Why doesn't everyone know about this service??
0 coins
Makayla Shoemaker
To answer the original question more simply: - When filing taxes: We're in the 2024 tax year during Jan-Apr 2025 - For income you're earning now: That's 2025 tax year - For estimated payments due in Apr/Jun/Sep 2025 and Jan 2026: Those are for 2025 tax year Most tax pros would say "we're currently in tax year 2024" during filing season, but specify "2025 tax year" when talking about planning or estimated payments.
0 coins
Paige Cantoni
•Thanks! This is exactly what I needed - a simple breakdown. So if someone just asks me with no context, is it more correct to say "we're in the 2024 tax year" right now in January, or should I clarify both possibilities?
0 coins
Makayla Shoemaker
•If someone asks you with no context, I'd say: "We're currently in the 2024 tax filing season, but any income you're earning now in 2025 will be part of your 2025 taxes." It's always better to clarify both possibilities since people might be asking for different reasons. Some might be wondering about filing taxes now, while others might be asking about tax planning for income they're currently earning.
0 coins
Christian Bierman
Just to add to the confusion lol - if you're a business that doesn't use the calendar year (like my company that uses July-June fiscal year), the tax year can be completely different! Our "2024 tax year" actually ended in June 2024 and we already filed those taxes. Tax years are the worst!
0 coins
Emma Olsen
•Yep! And some farmers and fishermen have different tax years too. My dad's farm uses a March-February tax year because it better matches his seasonal income cycle. The IRS is fun like that 😑
0 coins
Keisha Taylor
Great question! As someone who works in tax preparation, I always tell clients that during filing season (Jan-Apr), we're technically in the "2024 tax year" since that's what we're filing. But I like to be specific and say something like "We're currently filing 2024 tax returns, but any income you earn in 2025 will be reported on your 2025 return next year." The confusion is totally understandable because "tax year" can mean different things depending on whether you're talking about filing, earning income, or making estimated payments. When in doubt, just ask what they're specifically trying to figure out - are they asking about filing taxes now, or planning for income they're currently earning?
0 coins