3 Reasons to File Your Taxes Early This Year

Most years, tax returns are due on April 15 unless that date happens to fall out over a weekend. And because April 15 is a Tuesday this year, that’s precisely when your 2024 tax return needs to be submitted to the IRS.

But while you could put off the potentially unpleasant task of filing taxes, submitting your return early could work to your benefit this year. Here’s why.

1. If you’re due a refund, you’ll get it sooner

Many Americans unfortunately live paycheck to paycheck with no money in savings to fall back on. If that’s the situation you’re in, filing your taxes early could help you pocket your refund sooner. That could, in turn, help you avoid debt in the coming months, or pay off existing debt sooner.

The IRS typically issues refunds within three weeks, provided you file your taxes electronically. With a paper return, your refund might take longer.

Another good way to expedite your refund is to sign up for direct deposit. This way, the funds should land in your bank account automatically. But no matter how to choose to get paid, the sooner the IRS receives your tax return, the sooner that refund can be processed.

2. If you owe money, you’ll have time to come up with a plan

It’s not a given that you’ll be getting a tax refund this year. It may be that you underpaid your taxes in 2024 without realizing it, and now you owe the IRS money.

The stock market had an outstanding run in 2024. If you sold investments at a profit and didn’t pay estimated taxes on your capital gains, you may be looking at an underpayment.

Also, savings accounts and CDs offered strong rates in 2024. If you earned a lot of interest you didn’t pay estimated taxes on, you may now be in a position where you owe the IRS money.

The sooner you get your tax return done, the sooner you’ll know how much you owe. And from there, you can make a plan to get that bill paid.

Remember, you don’t have to settle up with the IRS until April 15. So if you decide to file your tax return in February, you can still take another eight weeks or so to come up with the money.

3. If you’re worried about fraud, you can reduce your chances of being a victim

Tax fraud has unfortunately become an increasingly common thing. Criminals have gotten frustratingly good at stealing identities, filing tax returns in other people’s names, and pocketing their refunds.

If you want to avoid being a victim in that regard, then it pays to file your taxes early. IRS system are recognized to reject tax returns with the same Social Security number as duplicates. If a criminal files one in your name and yours comes in second, you may be burdened with having to prove that you’re really you.

But if you beat a criminal to the punch, it’s going to be harder for them to prove that they’re you when they’re clearly not. So by filing early, you can not only protect your tax refund, but potentially avoid a giant hassle.

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