Tax season is a stressful time for many people, but it doesn’t have to be. Filing your taxes early can save you time, money, and stress. Here are five reasons why you should consider filing your taxes early:
1. Get Your Refund Sooner
If you’re expecting a refund, filing your taxes early is the best way to get your money back as quickly as possible. The IRS typically begins processing tax returns in late January, and most refunds are issued within 21 days of receipt. If you file electronically and request that your refund be deposited directly into your bank account, you could receive your money even sooner.
2. Avoid Tax Extension Problems
If you don’t file your taxes by the April 15th deadline, you’ll need to file an extension. This will give you an additional six months to file your return, but you’ll still have to pay any taxes you owe by the original deadline. If you don’t pay your taxes on time, you’ll be charged a failure-to-pay penalty.
3. Allow for Delays in Processing
The IRS is known for being slow to process tax returns. In 2023, the IRS had a backlog of over 10 million unprocessed returns. If you file your taxes early, you’ll be less likely to be affected by these delays.
4. Guard Against Tax Return Identity Theft
Tax return identity theft is a growing problem. In 2023, the IRS received over 4 million reports of tax-related identity theft. If you file your taxes early, you’ll be less likely to become a victim of this crime.
5. Other Benefits
In addition to the benefits listed above, filing your taxes early can also help you:
- Save up before Tax Day
- Get better prices on tax software
- Correct errors more easily
Filing your taxes early is a smart move for many reasons. If you’re expecting a refund, you’ll get your money back sooner. If you owe taxes, you’ll have more time to budget for the payment. And if you’re worried about tax return identity theft, filing early will help protect you from this crime.
FAQs
- What are the deadlines for filing my taxes?
The deadline for filing your federal income taxes is April 15th. However, some states have different deadlines. Check with your state’s tax agency for more information.
- What happens if I file my taxes late?
If you file your taxes late, you’ll be charged a failure-to-file penalty. The penalty is 5% of the unpaid tax for each month that your return is late, up to a maximum of 25%. You may also be charged interest on the unpaid tax.
- What are the benefits of filing my taxes electronically?
Filing your taxes electronically is the fastest and most accurate way to file. You’ll also be more likely to get your refund sooner.
- What are some tips for filing my taxes early?
Here are a few tips for filing your taxes early:
* Gather your tax documents early.* Use tax software to help you prepare your return.* File your taxes electronically.* Request that your refund be deposited directly into your bank account.Here’s why you should file your taxes early in 2023
FAQ
Is it better to file taxes early or later?
What happens if I submit my tax return early?
Is there a disadvantage to filing taxes early?
Is it too early to file taxes 2024?
Should I file my taxes early?
Every year, many taxpayers wait until the last minute to file their federal income tax returns. Despite this tendency, there are many reasons to file your taxes early. If you will receive a refund, you may want to submit your return as quickly as possible. Additionally, there are benefits to filing early for those taxpayers who have a balance due.
When is the earliest time to file taxes?
Since the IRS typically begins accepting tax returns in January, early tax filing can mean that you’re filing your taxes any time between early January and late March. Once April rolls around, the filing deadline is just around the corner and you won’t have much time to prepare your tax return. What’s the earliest you can file your taxes?
Should I submit my tax return early?
The reality is, there are pros and cons to either approach and the right option will depend on your situation. Image source: Getty Images. There are some huge advantages to submitting your tax returns as soon as possible. Here’s what they are: You can get your refund sooner: The sooner you send in your paperwork, the faster your refund will come.
What is considered early tax filing?
What’s considered early tax filing? When you file your taxes early, this means that you’re filing your tax return well in advance of the mid-April filing deadline. Since the IRS typically begins accepting tax returns in January, early tax filing can mean that you’re filing your taxes any time between early January and late March.