2025 tax season is set: here’s why you should file your return ASAP

It’s official. Yesterday, the IRS announced the date the organization would begin accepting tax returns this year — January 27, 2025. Tax returns for 2024 will not be due until April 15 for most taxpayers, but if you want to start early, now is the time to start retrieve your tax documents.

In fact, if you hope maximize your refundavoid scams and get your money back sooner, remember to file your tax return as soon as possible. Procrastination will not only slow down your tax refund but it also creates all kinds of stress, especially if you’re not sure if you owe money or get a tax refund.

Need more motivation? Discover all the benefits of starting your taxes as early as possible below. For more tax advice, see how the new tax brackets could add more money to your paycheck Or find out if you live in a state that has reduced income taxes.

Learn more: TurboTax is now 30% off, but that probably won’t last long

Reason #1: Get your tax refund ASAP

The best reason to file your taxes early is to get your money sooner if you’re expecting a tax refund. About two-thirds of taxpayers who filed their returns on time last year received tax refunds averaging more than $3,000.
If you overpaid your taxes during 2024, the IRS keeps your money and there is no reason not to get it back as soon as possible.

If you get that potential $3,000 in February instead of May, the difference over three months is about $30, you could earn a 4% APY in a month. high yield savings account. You can also use this money for more pressing issues, like home or car repairs.

The IRS allows itself 45 days to issue your tax refund without paying interest, but most tax refunds arrive within three weeks of filing a return.

Reason #2: Give yourself time to prepare if you owe money

When you’re not expecting a refund from the IRS, you might have an even more pressing reason to file early: to figure out how much you owe. Regardless of when you file your tax return, you won’t have to pay the taxes you owe for 2024 until the tax day deadline of April 15, 2025.

As someone who has faced a significant tax burden over the past several years, let me put it plainly to you: It’s terrifying to learn that you owe the government a lot of money right before taxes are due. . My hard-earned advice: Figure out if you owe the IRS more money ASAP so you can prepare to pay your tax bill in April, or explore your options for creating a payment plan with the IRS.

Reason #3: Reduce the risk of tax fraud and identity theft

Tax fraud and scams are big business. Between 2021 and 2022, the amount of fraudulent tax refunds identified by the IRS increased from approximately $16 million to more than $800 million. This type of tax fraud primarily occurs when someone else files a tax return with your name and Social Security number to claim your tax refund.

One of the best ways to prevent tax identity theft is to file your taxes early before anyone else can file one in your name. The sooner you file your taxes, the less likely you are to have your tax refund stolen.

If you are unable to file your application early, consider creating your own Identity Protection PIN on the IRS website. You’ll first need to create an IRS account online, but once you create your six-digit PIN, no one can file a tax return in your name without this secret number.

Reason #4: It’s time to test tax software

One nice aspect of tax software is that all major services will allow you to fill out your entire tax return and see how much your tax refund or debt you owe, free of charge. You pay for tax software when you file your return or you want a specific service like one-on-one assistance.

Starting your taxes early will give you time to test the available services for yourself and choose the one you prefer. Any of CNET chooses the best tax software will help you file your return and maximize your tax refund, but they all have unique interfaces, personalized help features, varying prices, and different levels of support for different tax forms.

By starting to file your taxes early, if you’re frustrated with one service or can’t find the answers you need to file your taxes, you have time to try another.

Reason #5: Find out early if you need help with your tax return

If you’re not sure you can handle your own tax return, starting early to prepare your taxes for 2024 will quickly help you determine if you need help. If you start your taxes early and find yourself in trouble, you’ll have the opportunity to hire a tax professional before they’re all booked up.

You can also get free tax help from a qualified tax resource, such as IRS Tax Assistance Centers, Voluntary Income Tax Assistance (VITA) and tax advice programs for seniors, AARP Foundation Tax Help Or Mil Tax for veterans. Note that these resources will be in higher demand and harder to reserve as the tax deadline approaches.

Reason #6: Reduce the stress of filing your taxes

Completing and submitting your tax return can be a stressful experience. A TaxSlayer Survey found that 28% of respondents said it would be easier to go without a cell phone for a week than to file their taxes.

The complications of the federal tax code can lead to moments of frustration and anxiety, even for the most prepared filer using the best tax software. Starting your taxes early and avoiding the April time crunch gives you plenty of opportunity to take your time and step away for a day or two, or even a week, before starting to work on your taxes again with fresh eyes and l clear mind.

Reason #7: Save on tax software

Pricing models for online tax software aren’t set in stone, but in general, companies will increase the prices of their products as the tax deadline gets closer. Major players like TurboTax, H&R Block, and TaxSlayer are also known for offering discounts and promo codes on their software at the start of tax season.

For more tax advice, learn more about all tax credits and deductions that owners can benefit from.