As the 2025 tax season kicks off, many Americans prepare to tackle the task they often dread: filing their tax returns. Even though the tax filing deadline for the fiscal year 2024 is April 13, 2025, the United States Internal Revenue Service shall commence receipt of filed returns from January 27. Here are five good reasons why one should file taxes early.
1. Get Your Tax Refund Sooner
Made possible by filing one’s taxes as early as possible, one of the major advantages of doing so is that you are likely to pocket your tax rebate earlier than later. As CNET has mentioned, 65% of immediate filers last year got tax refunds exceeding $3,000 on average. If you owed more taxes in 2024, the IRS would have your extra money, and you wouldn’t really need it sitting in a pool waiting for a wave to come along.
Getting it early can be pretty helpful, especially if you have emergencies requiring you to pay, such as house or car repairs. Secondly, depositing the refund in an interest-earning account means that the individual would earn more interest, boosting the value of the money from the earlier filing.
2. When the Time Comes if You Are the Debtor;
If you’re not expecting a refund and may even owe the IRS money, filing early allows time for preparation. This is particularly the case since, as CNET has pointed out, whether you file your taxes early or later in the year, you don’t need to pay for them until the tax deadline for the following year, which for 2024 would be April 15, 2025. Being aware of how much in taxes you will pay helps you build it into your expenses rather than being caught unawares in terms of costs by the burden.
This also helps one to discuss the chances of considering opening a payment plan with the IRS if necessary. This means that if you can solve your tax problems at the beginning, you are safe from unnecessary pressures and punishment from the government.
3. The best way to minimize risk for incidence of tax fraud and identity theft
It reported that tax fraud and scams are major factors, with the IRS seizing over $800 million of fake tax refunds between 2021 and 2022. One of the ways that you can reduce your risk of getting caught in tax-based identity theft is by filing your tax return early. Before fraudsters get a hold of your return, filing your return before the government issues your refund is wise.
You should apply for an Identity Protection PIN through the IRS to enhance your protection. This six-digit code ensures that nobody except you can file tax returns in your name, reducing fraud cases.
4. Save on Tax Software
Bargains and coupons are easily found and available as most tax software companies advertise them at the beginning of the season. These discounts are usually given around the middle of spring when the tax filing period is still a few weeks away, but as the deadline gets closer, companies will offer their tax software for a much higher price. Not only does filing early save time in the process, but the software used to complete the return is much cheaper.
It also allows you to try several tax software services if you begin your taxes early. CNET also reported that most of the finest tax software services enable you to finish your whole tax return and even review the sum of your tax rebate or the balance you owe tax without paying anything. You pay on a pay-as-you-go system or when it is time to submit your taxes or if you specifically need services such as individual assistance. Such flexibility of choice becomes possible when a client decides to use this software that meets his or her requirements.
5. Access to Professional Help
Tax professionals’ calendar gets busy before the Tax Day. Thus, it will be important to prepare documents earlier because by doing so, you may receive help from a reliable adviser, particularly when your return is complicated. For his part, Marca points out to unemployed citizens and low-income earners that they can use free services such as the Volunteer Income Tax Assistance (VITA) or AARP Foundation Tax-Aide in the case of early filers.
Likewise, preparing an early return removes stress during tax season. A TaxSlayer poll, quoted by Marca, found that 61 percent of people claimed to feel stressed during tax season. Doing your taxes early means that you can deal with problems involving the taxes before the deadline. There will be enough time to sort out such issues, find the documents you need for the filing process, or find some mistakes.
While many people believe that preparing taxes is a simple list check that has to be done, this is actually an essential act of getting your monetary affairs in order. These, and many others, are compelling enough to explain why most people consider its benefits simple and self-explanatory. Suppose you expect refunds, knowing that the IRS will accept returns starting January 27. In that case, you must gather your docum{% for trademark in TrademarksTodo %} and prepare for the big leap. In either case, it’s a great idea to file early because you stand to benefit in more ways than one.