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As the 2025 tax season kicks off, many Americans are preparing to tackle the task they often dread: filing their tax returns. While the official deadline to submit your 2024 income taxes is April 15, 2025, the IRS will start accepting tax returns this January 27.
Instead of waiting until the last minute, financial experts strongly recommend filing early. The benefits of getting ahead include faster refunds, reduced stress, and even protection against fraud.
If you're anticipating a tax refund, filing early allows you to get your money sooner. In 2024, the average tax refund exceeded $3,000, and early filers often received their refunds within three weeks of submission.
Additionally, getting your refund in February rather than May could even allow you to earn extra interest by depositing it in a high-yield savings .
For those expecting to owe taxes, early filing still has its advantages. By determining your tax liability sooner, you'll have ample time to budget and plan, avoiding the financial strain of a last-minute surprise.
Reduce Tax Season Stress
Tax season is notorious for causing anxiety. According to a TaxSlayer survey, 61% of taxpayers it to feeling stressed during this time, with many preferring unpleasant alternatives like dental visits over filing their returns. Tackling your taxes early gives you the opportunity to address complications without the added pressure of the looming deadline.
This approach also offers flexibility. If you find mistakes or need additional documents, you'll have time to resolve these issues. Once your taxes are filed, you can relax while others scramble to meet the deadline.
Protect Against Identity Theft
Filing early can safeguard you against tax refund fraud, a crime where scammers use your Social Security number to file fraudulent returns and steal your refund. Between 2021 and 2022, the IRS intercepted more than $800 million in fraudulent tax refunds.
Filing before scammers have a chance to act ensures your return gets processed without interference. For an added layer of security, consider creating an Identity Protection PIN through the IRS. This six-digit code prevents anyone else from filing a return under your name.
Save on Tax Software
Many tax software companies offer discounts and promotional codes early in the filing season. Waiting until April often means paying prices for the same services. By filing early, you not only save time but also cut costs.
Get Access to Professional Help
Tax professionals' schedules fill up fast as Tax Day approaches. By filing early, you'll have a better chance of securing assistance from a trusted advisor, especially if your return is complex. You'll also have access to free resources like the Volunteer Income Tax Assistance (VITA) program or AARP Foundation Tax-Aide for eligible taxpayers.
Avoid Processing Delays
The IRS has faced significant backlogs in recent years, with millions of unprocessed paper returns delaying refunds for months. Filing early, electronically, and with direct deposit ensures your return is processed quickly and accurately.
Maximize Your Refund
Early filers often receive larger refunds, partly because they have more time to review deductions and credits. From education expenses to energy-efficient home improvements, filing early gives you the chance to ensure you're claiming all eligible benefits.
Filing your taxes early isn't just about ticking off a to-do list-it's about taking control of your financial health. From faster refunds and reduced stress to fraud prevention and savings, the advantages are clear.
With the IRS ready to accept returns starting January 27, now is the time to gather your documents and make a plan. Whether you expect to owe or receive a refund, filing early is a smart move that pays off in more ways than one.