When it makes sense to file a tax return as soon as you can
The 2024 tax season for 2023 tax returns is now officially underway. Here are several reasons to consider filing your tax return early.
Filing your tax return early
- Get your refund. There’s no reason to let the government hold onto your funds interest-free, so file early and get your refund as soon as possible. While legislation delays receiving refunds for tax returns claiming the Earned Income Tax Credit and the Additional Child Tax Credit until after February 15th, the sooner your tax return is in the queue, the sooner you will receive your refund.
- Minimize your tax identity fraud risk. Once you file your tax return, the window of opportunity for tax identity thieves closes. Tax identity thieves work early during the tax filing season because your paycheck’s tax withholdings are still in the hands of the IRS. If thieves can file a tax return before you do, they may be able to steal these withholdings via a refund that should have gone to you!
- Avoid a dependent dispute. One of the most common reasons an e-filed return is rejected is when you submit a dependent’s Social Security number that has already been used by someone else. If you think there is a chance an ex-spouse may do this, you should file as early as possible.
- Deliver your return to someone who needs it. If you plan to buy a house or anticipate any other transaction requiring proof of income, you may wish to file early. This is especially important if you are self-employed. You can then make your tax return available to your bank or other financial institution.
- Beat the rush. As the tax filing deadline approaches, getting help becomes more difficult. So get your documentation together and schedule a time to file your tax return as soon as you can. It can be a relief to have this annual task in the rear-view mirror.
But it isn’t for everyone…
While it may make sense for some to file early, it may be better for others to file later. If you wish to file early, it’s best to be deliberate and plan accordingly. Contact our RRBB advisors if you have any questions or are ready to file your taxes.
Get free tax planning and financial advice