Filing taxes may not be anyone’s favorite activity, but tackling it early can offer significant benefits. With the IRS accepting returns starting January 27, 2025, taxpayers have an opportunity to get ahead of the April 13, 2025, deadline. Here are five compelling reasons to consider filing early this tax season.
Get Your Tax Refund Sooner
One of the most immediate advantages of filing early is faster access to your tax refund. According to CNET, 65% of early filers in the previous year received refunds averaging over $3,000. Instead of letting the IRS hold onto your money, filing early ensures it returns to your pocket sooner.
Early refunds can be especially helpful for unexpected expenses like home repairs or medical bills. Additionally, depositing your refund into an interest-earning account sooner can help maximize its value over time.
Prepare for Payments If You Owe the IRS
Not everyone receives a refund; some taxpayers owe money to the IRS. Filing early can provide a clearer picture of your tax obligations, allowing you time to prepare. Even though taxes aren’t due until April 13, filing early helps incorporate payments into your budget.
For those who may face financial challenges, filing early also allows time to explore payment plans with the IRS. This proactive approach minimizes stress and avoids potential penalties.
Reduce the Risk of Tax Fraud and Identity Theft
Tax-related identity theft remains a significant concern. The IRS reported intercepting over $800 million in fraudulent tax refunds between 2021 and 2022. Filing early reduces the window of opportunity for fraudsters to submit fake returns in your name.
To further protect yourself, consider applying for an Identity Protection PIN through the IRS. This six-digit code adds an extra layer of security, ensuring only you can file a return under your identity.
Save Money on Tax Software
Tax software is often discounted early in the filing season, giving early filers access to bargains. Prices typically increase as the April deadline approaches, so starting early can result in significant savings.
Many top-tier tax software services also allow users to complete and review their returns for free before submission. Filing early provides the flexibility to test different platforms and find the one best suited to your needs without the pressure of looming deadlines.
Access Professional Help
Tax professionals’ schedules fill up quickly as Tax Day nears. Filing early ensures access to expert advice, particularly for those with complex tax situations. Early preparation also provides unemployed individuals and low-income earners the chance to use free services like the Volunteer Income Tax Assistance (VITA) program or AARP Foundation Tax-Aide.
Additionally, starting early reduces stress. A TaxSlayer survey found that 61% of people feel stressed during tax season. Filing early allows ample time to address any issues, locate necessary documents, and resolve errors without last-minute panic.
The Bottom Line
Filing taxes early is more than just crossing off a to-do list—it’s an opportunity to take control of your financial well-being. Whether you’re looking forward to a refund or preparing for a payment, filing early offers advantages like faster refunds, reduced fraud risk, and better access to resources. With the IRS accepting returns starting January 27, now is the perfect time to gather your documents and make this tax season a stress-free experience.
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