Should You File Your Taxes Early This Year?

The deadline for filing your taxes each year is usually April 15. However, waiting till the last minute is rarely great advice for anything in life—and that goes double when it comes to filing your taxes.

For some folks, simply getting your taxes off your to-do list for one more year is incentive enough to file early. If that's not you, there's also another great reason: The sooner you file, the sooner you'll get your refund. And if you're like most people, that refund already has a job to do, like pay off debt or start an emergency fund.

You know that saying about the early bird and the worm? Well, here's a better version: The early filer gets the quicker refund. 

Tax refunds are generally processed in a first-in, first-out order, so filing early could put your refund ahead of the pack. The more returns  processed, the slower everything goes. 

The IRS received almost 141 million tax returns in 2025. The best way to beat the line is to file ASAP. 

That doesn’t mean Jan. 1. In 2025, the earliest you could file Federal taxes was Jan. 27. Getting your return in during that small window before February is a great way to beat the crowds. According to the IRS, only about 9% of individuals filed their returns before Feb. 1 in 2025.

Filing early isn't always possible, though; employers have until Jan. 31 to send out W-2 forms. You'll still be in good shape if you get your return submitted sometime in February. Only about a third of filers get in before March 1, so a February filing would put you ahead of around 93 million later filers.

How and When to File Taxes

If you’re new to filing taxes or just want a quick refresher, here are the essentials.

Tax-filing deadlines

The most common deadline for filing taxes is April 15. That's the deadline for individual and C corporation returns. 

Partnerships and S corporations must file a month earlier, by March 15. 

Any individual or business can file an extension that will extend the filing deadline to Oct. 15, but you must fill out the extension request by the normal filing date. The extension gives you more time to file your taxes, but it doesn't give you more time to pay them. If you pay late, you’ll still be hit with a penalty.

How to file your taxes

You can file your taxes in two ways:

• E-filing. You file your taxes electronically using either the IRS Free File system or a commercial software like TurboTax, and your return is delivered immediately to the IRS. This method also lets you set up a direct deposit of your refund into your bank account.

• Mail. You fill out physical tax forms and mail them to the IRS. It takes about six weeks for a return to make it through the postal system and then be entered into the IRS system.

You can use either of these options whether you're filing on your own or with the help of a professional.

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Standard Deduction vs. Itemized Deductions

When you file taxes, you can claim deductions (expenses) that lower your taxable amount. Basically, your income, minus deductions, equals your taxable income, and then you’re taxed on a percentage of your taxable income. 

You can choose to list out all your deductions—such as charitable donations, healthcare expenses, home mortgage interest—or you can take the standard deduction, which is a flat rate.

The best option will depend on your specific financial situation. If you're not sure, consult with a tax professional.

Gather Your Tax Documents Early

If taxes were a creature, it'd be one that ate paperwork. It's important to gather your essential documents before you start filing to keep the process smooth and error-free.

Here's a quick list of documents you might need when you file your taxes:

• Form W-2 from your employer(s)

• Non-employer income forms, such as 1099-K or 1099-MISC

• Form 1099 from your bank and investment accounts; 1099-INT is for interest earned 

• Mileage and expense records

• Mortgage loan interest statements

• Receipts from charitable donations

• Records for small business expenses (if you’re a sole proprietor)

• State and local tax records

• Documents from other deductible expenses (medical, education, etc.)

• Your previous year's tax return

• A record of any estimated tax payments made throughout the year

Other information you'll need to have on hand:

• Your Social Security number (and those for any spouse or dependents)

• Your Identity Protection PIN, if you have one from the IRS

• Bank account and routing number, if you're setting up direct deposit for your refund

Employers and other businesses are generally required to submit tax forms by Jan. 31, so they should hit your mailbox before or shortly after.

You may be able to get faster access to your tax forms online. Many businesses now offer digital tax forms. You can also access many banking tax forms, such as 1099s, through the online portal or mobile app of your bank or investment account.

Some online budgeting and accounting software programs will let you automatically import certain documents when it's time to file. This could save a lot of hassle, particularly if you're a sole proprietor with multiple income sources like a freelancer or gig worker.

How Soon Can You File Your Tax Return?

The tax year for individuals starts Jan. 1, but you can't file your taxes that soon because the IRS won't accept them until later in the month.

The IRS  accepts returns in the second half of January, though the exact date varies from year to year. For the 2024 tax year, you could start filing your Federal tax return Jan. 27, 2025. The IRS usually announces the start of the tax season sometime in the second week of January.

Since employers aren't required to have your W-2 out until Jan. 31, you may not have all the documents you need to file your taxes.

5 Reasons to File Taxes Early

There are several benefits to filing your taxes well before the spring deadlines:

1. Get your refund months earlier. The sooner you file, the sooner you can get your refund. This could help with essential expenses, give you a savings cushion going into the spring, or help you make ends meet if you’re going through a period of unemployment.

2. Have more time to pay your taxes. If you think you’ll owe money, you’ll have more time to figure out exactly how much you’ll owe and how best to manage your tax bill.

3. Avoid having to file an extension. Waiting until the last minute could cause you to miss the standard filing deadline, so getting a head start on your taxes means you don’t have to worry about the extra steps involved with being late.

4. Save on your filing costs. Most people wait until March or April to file taxes, and that's when prices also tend to go up (supply and demand). Filing early could get you a deal from your tax pro.

5. Prevent tax return identity theft. If someone else gets ahold of your Social Security number, they may be able to file a return in your name to collect your refund. It could take years to get your refund back even if you can prove identity theft.

If you've never given much thought to the security of your tax refund, it's important to consider. The IRS handles hundreds of thousands of tax identity theft cases each year.

How to Protect Yourself From Tax Identity Theft

Filing early could be the best way to avoid tax identity theft. Submitting your tax return as early as possible leaves less time for someone else to successfully file with your information.

If you'd like another layer of security, you can also get an identity protection personal identification number from the IRS. 

How to use an IRS identity protection PIN

An identity protection PIN is a six-digit number known only to you and the IRS that the IRS can use to verify your identity. Filing with an identity protection PIN lets the system flag any suspicious returns and alert you if someone tries to file with your Social Security or tax ID number.

You can sign up for an identity protection PIN through your online IRS account. You can also get an identity protection PIN for spouses and dependents as long as their identities can be verified. 

Each identity protection PIN is valid for one calendar year. After it expires, a new one will be generated in your account. Once you get an identity protection PIN, you'll need to use it every year going forward.

What to do if you suspect tax identity theft

You could find out about tax identity theft in many ways, whether it's unexpected tax bills, a stolen refund, or a letter from the IRS about a suspicious return. Whatever happens, there are some steps you should take:

• Change the password for your online IRS account. 

• Report the identity theft. IdentityTheft.gov is a good place to start.

• If you received a letter from the IRS, follow the instructions.

• Get an identity protection PIN for extra protection going forward.

How Soon Can You Receive Your Tax Refund?

Most refunds are issued within 21 days. How long it takes to get to you after that will depend on whether you signed up for direct deposit or a check by mail.

The fastest way to get your refund is to set up a direct deposit so you get your refund digitally deposited into your bank account. Most people who use direct deposit get their refund in less than 21 days.

If you file a paper return by mail, expect your refund check to take up to six weeks to arrive.

Why was your tax refund delayed?

There are a few reasons your tax refund could be delayed:

• You didn't file early, and now the IRS is backed up.

• Your tax return was incomplete or had errors.

• The bank is taking longer to process and/or post the transaction.

• There were corrections to the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC).

How to check your federal tax refund status

You can check the status of your tax return at any time online through the IRS's Where's My Refund? tool. Your status should appear around 24 hours after you e-file or four weeks after you file by mail.

To use Where's My Refund?, you'll need:

• Your Social Security or tax ID number

• Your filing status

• The exact refund amount on your tax return 

Stay patient. The IRS will contact you by mail if there's an issue with your return.

Special Considerations for Financial Hardships

A tax bill is never convenient, and it's even less so when you're facing financial hardship. However, you may have options to navigate the situation. 

The last thing you want to do is not file. Even if you can't pay right away, you should still file before the deadline to avoid penalties.

Here are some other things to consider if you're facing financial hardship.

Currently Not Collectible (CNC) status

The IRS will give you a status called Currently Not Collectible (CNC) if it thinks you can't pay your tax bill because you have money problems. CNC status gets you a temporary delay on collection—it doesn't make your tax bill go away.

To qualify for CNC status, you need to prove to the IRS that you can't afford to pay your tax bill right now. This will involve providing financial documentation that proves your financial hardship.

Interest and penalties continue to accrue even if you aren't required to make payments during CNC. It's best to create a repayment plan as soon as possible to minimize these extra costs.

Offer in compromise

If you owe more tax debt than you can repay, you may be eligible for an offer in compromise. This is when you make an agreement with the IRS to settle your tax debt for less than you owe.

You may be eligible for an offer in compromise if you:

• Have filed all of your tax returns and made any required estimated payments.

• Aren't in an active bankruptcy proceeding. 

• Have a valid filing extension.

• Are an employer and have made tax deposits for the current and past two quarters.

You can check your eligibility using the IRS's Offer in Compromise Pre-Qualifier Tool online.

Refund anticipation loans

Some tax preparation companies will offer you a short-term loan or advance on your tax refund. These offers can be tempting since they could put your refund in your bank account within a few days.

The cost can be quite steep. Refund anticipation loans typically have high interest and fees that eat into your refund.

Most IRS refunds are issued within 21 days if you e-file and opt for direct deposit. You could save yourself a lot of money if you wait until your refund hits your bank account rather than getting an expensive short-term loan.

Use Your Tax Refund to Help Pay Down Debt

There are a lot of ways you could spend your tax refund. If you have high-interest debt, putting your refund toward your debt could be the best option.

Consider these tips when planning how to use your tax refund for debt:

• Pay off your most expensive debt first. This is usually the debt with the highest interest rate. Once that's paid off, put the rest to your debt with the next-highest interest rate.

• Make extra payments. Any debt payments you make above the minimum go directly to your principal, which could help you pay off your debt faster.

• Try debt settlement. Debt settlement is when you negotiate with a lender to accept less than you owe but consider the debt satisfied. A big tax refund could help you resolve an outstanding debt this way.

• Build an emergency fund. If you're already out of debt, consider putting your tax refund into an emergency fund. This is money you put into a high-yield savings account and don't touch unless there's a genuine emergency. An emergency fund could help you avoid future debt.

You don't need to pay off an entire debt to make this a smart use of your tax refund. Every bit of debt you pay off puts you that much closer to being debt free.

Common Tax-Filing Mistakes to Avoid

A mistake on your tax return isn't the end of the world, but it could mean a delay in processing your return and issuing your refund. Try to avoid these common mistakes for the speediest refund:

• Filing too late. Filing past the April 15 deadline could mean penalties and interest to pay. If you need more time to complete your tax return, file an extension.

• Filing too early. While it's good to file your tax return as soon as possible, the IRS won't accept it if you file too early. The IRS typically starts accepting returns by the end of January.

• Spelling mistakes. A swapped letter in your address might not get you audited, but it could delay your refund.

• Math errors. The IRS can catch a lot of small math errors, but major flubs could delay your refund or even get you audited.

• Wrong filing status. Using the wrong filing status could delay your refund and may even require filing an amended return.

• Unsigned forms. If you're filing by mail, be sure you sign everywhere that's required or your return may not be accepted.

• Incorrect bank account information. Direct deposit could help you get your refund faster—if you provide the right information.

Most of these mistakes can be avoided by carefully checking over your return before you submit it. Look over each entry you've made to ensure you've crossed your t's and dotted your i's, both literally and metaphorically.

Using a good tax prep pro or software program could help with a lot of the potential for human error. They'll do the math for you, as well as tell you when and where to sign.

Tax-Filing Resources

You can find a variety of tax resources to help you learn more about your taxes and get help filing. Here are a few places to start:

• IRS Free File. You can get access to free guided tax software if you have an adjusted gross income (AGI) of $84,000 or less. You can also get access to fillable online forms at any income.

• IRS Direct File. You may be able to file for free online directly with the IRS if you live in a participating state.

• Online tax software. There are dozens of tax prep companies that offer easy online software that automates and simplifies much of the filing process. This is a good option if you're concerned about doing the math on your own.

• Volunteer Income Tax Assistance (VITA). This program offers free tax help to people who need assistance preparing their own taxes, including people who make $67,000 or less, people with disabilities, and people with limited English.

• Tax Counseling for the Elderly. This IRS-sponsored program offers free tax help to all taxpayers, with special emphasis on those 60 or older.

• Armed Forces Tax Council. The AFTC helps members of the military access programs like MilTax (a free tax service suite with tailored software for military members), free online tax filing software, and Volunteer Income Tax Assistance (VITA).

• State-specific resources. Your state may offer tax programs that could help. Contact your state's tax administration department for information.

Taxes can be complicated, so don't be afraid to ask for help if you need it.