Many Americans approach filing taxes with trepidation. In fact, 64% of Americans report feeling stressed about tax season. The best way to alleviate tax-related stress is to take a deep breath and file your return early, however. You’ll lower your stress level and get your tax refund back faster if you get your return in well in advance of the April 15 deadline.
“Filing your taxes as soon as your documents are ready offers both financial and mental benefits. While many Americans procrastinate, taxes are inevitable so why hold on to unnecessary stress and mental fatigue? Filing early lifts that burden off your shoulders while also unlocking key tangible benefits,” says Zack Gutches, a certified public accountant and lead financial planner at True Riches Financial Planning.
Key Takeaways
- You’ll get a quicker refund if you file your tax return early.
- You’ll have more time to plan how you’ll pay your taxes if you prepare your taxes early.
- Early tax preparers have more time to fix mistakes and they may save on tax preparation costs.
- Filing early will help you avoid penalties and reduce stress.
Get Your Refund Faster
A big advantage of filing your taxes early is that you’ll get your tax refund more quickly if you’re due one.
“The IRS processes returns on a first-in, first-out (FIFO) basis, meaning the earlier you file, the sooner you’ll receive your refund,” Gutches says. “Instead of giving the government an interest-free loan, you can put your money to work sooner, whether that’s earning 4%+ in a high-yield savings account, investing in a money market fund, or allocating funds toward debt repayment, retirement savings, or college funding,”
There have been some concerns that tax refunds could be delayed in 2025 due to pending IRS budget and staff cuts, but the New York Times reported in February that any effect shouldn’t be significant if you e-file your return and it’s not flagged for errors. And it’s another good reason to file as early as possible in case the cuts do take effect.
More Time to Plan If You Owe
Nobody likes a tax bill but you’ll have more time to consider your options for paying if you prepare your taxes early.
“Even if you owe taxes, you don’t have to pay until April 15. Filing early gives you extra time to plan how you’ll cover the payment, whether that’s adjusting your budget, shifting funds, or identifying missed deductions, credits, or pre-tax retirement contributions to lower your tax bill,” Gutches says.
Protect Against Identity Theft
Another advantage to preparing your tax return early is that it helps to guard against identity theft.
“Tax-related identity theft is a growing issue,” Gutches says. “Fraudsters will attempt to file a return using your Social Security number before you do, claiming a refund in your name. Filing early helps block identity thieves from beating you to the punch.”
More Time for Corrections
You’ll give yourself time to catch and fix mistakes if you prepare your tax return well ahead of the April 15 deadline.
“Filing early allows extra time to catch any mistakes or omissions. If you spot any errors on the return, taxpayers can fix them and finalize without the added stress of a looming deadline,” says Prudence Zhu, a certified public accountant and founder of Enso Financial.
You can submit an amended tax return to the IRS if you catch a mistake after you’ve filed your return.
Reduced Costs
You may catch a break on your tax prep costs by preparing your return early.
“Some preparers offer discounts for clients who submit their documents early, and tax software companies often provide promotional codes early in the filing season,” Zhu says. “On the other hand, if you file last minute, expect higher prices and limited service options. Tax preparers’ schedules fill up fast during tax season.”
Maximize Tax Benefits
Early tax preparers have more time to explore tax-saving benefits.
“By filing early, taxpayers have more time to strategize tax-saving opportunities such as making last-minute contributions to tax-advantaged accounts like IRAs or HSAs, which can lower taxable income. It also gives you time to explore any potential deductions or credits you might have missed,” Zhu says.
You can also submit an amended return to the IRS if you realize after you’ve filed that you’re eligible for a tax credit or deduction that you didn’t claim.
Avoid Penalties
File early and you won’t have to worry about late filing penalties.
“Filing early allows more time to prepare for payment, minimizing the risk of penalties and interest for late filing,” Zhu says.
The Bottom Line
Preparing taxes early saves you stress and money. File an early return, and you’ll receive your tax refund more quickly. You’ll give yourself more time to plan how you’ll pay the tax bill if you owe one, more time to explore tax benefits, and more time to correct errors. You’ll be able to avoid penalties for late filing by not leaving your return to the last minute and you may save money on tax prep costs.
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