Tax Day 2025 has arrived, bringing new challenges for Honolulu families and small businesses. Rising costs, changing federal policies, and economic uncertainty are making this year’s tax season particularly stressful. Experts advise residents to stay informed and organized to navigate the complex tax laws effectively.
Missing potential deductions could lead to unexpected expenses, so early preparation is key. Local CPA Reyn Wicklund highlights the struggles many business owners face due to uncertainty surrounding tariffs. “I think many businesses are deciding to put tariffs as a line item until the federal government resolves that issue,” said Wicklund.
This makes it difficult for businesses to forecast costs and price their services competitively. For those who haven’t filed yet, submitting a request for an extension by midnight is strongly recommended. An extension grants filers until October 15 to submit returns, but does not extend the deadline to pay taxes owed.
Tax season challenges for Honolulu families
Late payments may incur penalties and interest. To file for an extension, submit Form 4868 online or by mail.
Pay an estimated amount through the IRS direct pay portal or another approved payment system. If your adjusted gross income is $79,000 or less, you can use IRS Free File to prepare and file electronically today. Double-check that you have all necessary documents ready.
Also, note that in Hawaii, state taxes are due Monday, April 21. Looking ahead, CPAs and financial advisors urge Americans to start planning early for next year’s taxes. Staying proactive could mean the difference between a surprise bill and a smoother refund process.
“It’s going to be important for them to meet with their CPAs at the end of the year,” Wicklund emphasized. “There’s going to be a whole lot of information coming out, not only for 2025 but for future years as well.”
As Honolulu braces for the deadline, the local community is encouraged to remain vigilant and seek assistance if needed to effectively manage their tax obligations during this tumultuous period.