2024 Tax Season: 7 Compelling Reasons To File Your Taxes Early
As the 2024 tax season kicks off on January 29th, it’s crucial to avoid procrastination and file your 2023 tax return promptly. Embracing early filing offers a plethora of benefits that can make the process smoother, faster, and potentially more rewarding. Here are seven compelling reasons why you should file your taxes early:
1. Expedited Tax Refunds: Get Your Money Back Sooner
If you’re expecting a tax refund, filing early is the key to receiving it swiftly. In 2023, approximately 19 million individuals filed their taxes during the first week, highlighting the popularity of early filing. The IRS aims to issue refunds within 45 days, but most refunds arrive within three weeks of filing. An early refund can be a financial lifeline, allowing you to utilize the funds for pressing needs or capitalize on interest gains in a high-yield savings account.
2. Ample Time for Preparation: Avoid Last-Minute Scrambles
If you anticipate owing taxes, filing early provides ample time to prepare and gather the necessary funds. While the tax payment deadline remains April 15th, 2024, regardless of filing date, early preparation can alleviate stress and allow for exploring payment plan options with the IRS. You’ll have ample time to meticulously organize your tax documents, ensuring accuracy and avoiding any potential delays or penalties.
3. Minimized Risks of Tax Fraud and Identity Theft: Protect Yourself
Tax fraud and identity theft are prevalent concerns, posing significant financial and personal risks. In 2022, the IRS identified a staggering increase in fraudulent tax refunds, escalating from a mere $16 million to over $800 million. Filing early can help prevent such fraud by preempting others from filing a return using your personal information. Additionally, creating an Identity Protection PIN on the IRS website can further safeguard you against fraudulent activities.
4. Test-Drive Tax Software: Find the Perfect Fit
Leading tax software services allow users to complete their tax returns and preview their refund or tax liability without incurring any charges. Starting early provides an opportunity to test various software options and select the one that best suits your needs. Each software has unique interfaces, support features, pricing structures, and tax form compatibility. Testing early allows ample time to choose the right software and address any challenges or frustrations before the tax deadline looms large.
5. Identifying the Need for Professional Assistance: Seek Help if Needed
If you’re uncertain about handling your tax return independently, starting early can help you gauge the complexity of your situation. If you encounter difficulties, you’ll have ample time to seek professional assistance before tax professionals become fully booked. Various resources offer free tax help, including IRS Tax Assistance Centers, VITA (Volunteer Income Tax Assistance), TCE (Tax Counseling for the Elderly), AARP Foundation Tax-Aide, and MilTax for veterans. Note that these resources become increasingly in demand as the tax deadline nears.
6. Reduced Stress and Anxiety: File with Peace of Mind
Filing taxes can be a stressful experience, with a significant portion of individuals reportedly finding it more challenging than going without a mobile phone for a week. The complex federal tax code can lead to frustration and anxiety. Starting early allows you to avoid the last-minute rush, take breaks when needed, and approach the task with a clear and refreshed mindset. You’ll be able to methodically gather your documents, research any applicable deductions or credits, and file your return with confidence.
7. Potential Savings on Tax Software: Grab Early-Bird Discounts
Tax software pricing tends to increase as the tax deadline approaches. Major providers like TurboTax, H&R Block, and TaxSlayer often offer early-season discounts and coupon codes. Filing early can help you take advantage of these savings and potentially reduce the cost of tax software. Research available discounts and promotions to maximize your savings while ensuring you choose software that meets your specific needs.
Conclusion: Embrace Early Filing for a Smoother Tax Season
By heeding these compelling reasons and filing your 2023 tax return early, you can reap numerous benefits that will make the process more manageable, potentially more rewarding, and less stressful. Embrace early filing and approach the task with a proactive mindset to ensure a smooth and efficient tax filing experience.