Reasons to file early
When the IRS receives its first tax return in late January or early February, the 2022 tax filing season officially begins. For various reasons, consider filing your tax return as soon as the IRS starts collecting returns. Here are a few of the most widespread:
Filing a tax return early
- To get your refund ASAP. So file early and obtain your refund as soon as you can. There’s no reason to let the government keep your money without charging you interest. The sooner your tax return is processed, the sooner you will receive your refund. However, remember that the law prohibits refunds for tax returns claiming the Earned Income Credit and the Additional Child Tax Credit until after February 15.
- To reduce the danger of tax identity fraud. The window of opportunity for tax identity thieves expires after you file your tax return. Because the IRS still controls the tax withholdings from your paycheck, tax identity thieves start their job early in the tax filing season. They can take these withholdings from a refund that should have gone to you if they can submit a tax return before you do.
- To prevent a dependent disagreement. The most frequent cause of an e-filed return denial is when a dependent’s Social Security number is one that another person has already used. Therefore, you should file as soon as possible if you believe your ex-spouse might do this.
- To provide your refund to someone who needs it. You should file early if you intend to purchase a home or anticipate engaging in any other transaction that requires proof of income. This is particularly crucial if you work for yourself. Then, you can provide your bank or another financial institution access to your submitted tax return.
- To beat the rush. It gets harder to find assistance as the tax filing deadline draws near. So gather your supporting documents and plan a time to file your tax return as soon as possible. The fact that this annual effort is now behind us can be a comfort.
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