Tax Season 2025: Here are the 8 Benefits of Filing Tax Early

Benefits of Filing Tax Early: As the 2025 tax season begins, many Americans are getting ready to file their tax returns. While the official deadline to submit your 2024 taxes is April 15, 2025, the IRS will start accepting returns on January 27. Financial experts recommend filing early for several important reasons that can make the process easier and less stressful.

Benefits of Filing Tax Early

1. Faster Refunds

One of the main reasons to file early is to receive your tax refund quickly. In 2024, the average tax refund was over $3,000, and early filers often received their refunds within three weeks of submission. If you are expecting a refund, filing early means you will get your money sooner, which you can then use to meet other financial goals, like putting it in a high-yield savings account to earn extra interest.

2. Avoiding Financial Surprises

Filing early is not just for people expecting refunds. If you anticipate owing taxes, filing early helps you avoid the stress of a last-minute payment. Knowing how much you owe gives you time to plan and budget, so you are not caught off guard when the deadline approaches.

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3. Reducing Stress

Tax season can be stressful for many people. A survey by TaxSlayer found that 61% of taxpayers experience anxiety about filing their returns. In fact, some people would rather face unpleasant tasks like going to the dentist than deal with their taxes.

Filing early can help reduce this stress by giving you time to address any issues that might come up. If you make a mistake or need additional documents, having extra time lets you fix things without rushing.

4. Protecting Against Identity Theft

Filing early also helps protect you from identity theft. Tax refund fraud is a growing issue, where criminals use stolen personal information to file fake tax returns and steal refunds.

By filing before scammers have the chance to act, you can ensure your return is processed properly. For extra security, you can set up an Identity Protection PIN with the IRS, which helps prevent anyone else from filing a return under your name.

5. Saving on Tax Software

Another benefit of filing early is the potential for saving money on tax software. Many companies offer discounts early in the tax season. If you wait until closer to the deadline, you might end up paying higher prices for the same services. By filing early, you can save both time and money.

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6. Getting Professional Help

If you need professional help with your taxes, filing early increases your chances of securing assistance. Tax professionals get busy as the deadline approaches, so filing early gives you a better opportunity to work with an advisor.

For eligible taxpayers, there are also free resources available, like the Volunteer Income Tax Assistance (VITA) program and AARP Foundation Tax-Aide.

7. Avoiding Delays

The IRS has been dealing with backlogs in recent years, leading to significant delays in processing returns. Filing early and electronically ensures your return is processed quickly and accurately, without the long wait for paper returns to be processed. Direct deposit of your refund also speeds up the process.

8. Maximizing Your Refund

Finally, filing early gives you the time to maximize your refund. When you file early, you have more time to review your deductions and credits to make sure you are claiming everything you are eligible for. Whether it is education expenses or home improvements, filing early allows you to ensure you are not missing out on any potential benefits that could increase your refund.