Dave Ramsey Says These Are 6 Good Reasons to File Your Taxes Early

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

It pays to get your taxes done well ahead of the filing deadline. 

Tax returns are due on April 18 this year, so even if you haven’t yet gotten started on yours, there’s still time to complete your return well ahead of that deadline. And if you ask financial guru Dave Ramsey, there are six good reasons to file taxes on the early side.

1. You can avoid processing delays

Last year, the IRS had a huge backlog of tax returns to process that left millions of taxpayers waiting for their refunds to hit their bank accounts. The sooner you file your tax refund this year, the sooner you can expect your refund to arrive. And given the way inflation is surging, not having to wait on the money you’re entitled to could be a very good thing.

2. You can minimize your personal stress load

Many of us have different reasons to be stressed, whether it’s work-related deadlines, problems at home, or social pressures. The last thing you need is the stress of not having your taxes done weighing you down. If you file your tax return early, you’ll cross that task off your list — and take a load off yourself mentally.

3. You might have a lot of money coming your way

Ramsey says that early tax-filers average larger refunds. In fact, he points to IRS data that shows that taxpayers who file their returns by late February get around $400 more back on average than filers who wait.

Now, to be fair, the amount of your refund will hinge on your total tax picture — not your filing date. But if you are eligible for a larger refund, you might as well get that money as quickly as you can.

4. You can protect yourself from identity theft

If a criminal gets a hold of your Social Security number, they could use that information to file a tax return on your behalf and steal your refund by diverting it to a bank account they have control over. But the IRS is set up to only accept one tax return per Social Security number.

If you file yours first, any fraudulent return that comes in later is going to be flagged as a duplicate. But if a criminal files before you do, you’ll be the one who has to deal with the hassle of proving that your return is the legitimate one.

5. You’ll have time to formulate a game plan if you owe the IRS money

Many people anticipate a tax refund when filing taxes. But what if you’re in the opposite boat and you end up owing the IRS money?

You may not have the cash just sitting around in your savings account to hand over. So the sooner you get your tax return done, the sooner you’ll be able to come up with a plan to pay the IRS what you owe.

6. You might get more of your accountant’s attention

Accountants and tax professionals tend to be very busy during the tax season — especially during the latter part of it. If you file your taxes early, it might help ensure that the person you work with gives your return their full attention rather than landing in a situation where they’re just rushing through the job.

In an ideal world, you’d get your tax preparer’s full attention no matter when you start the process. But realistically, you’re likely to get more of it when you give them ample time to prepare your return.

Clearly, there’s lots to be gained by filing your taxes early. So if you haven’t gotten started, get moving now. There are still many weeks to go before the April 18 filing deadline, and prioritizing your taxes in the coming days could really end up benefiting you financially.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More