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Mark the date on your calendar.
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Filing taxes is the sort of thing you may not be in a hurry to do. In fact, a lot of people find the process of filing taxes stressful, so they put it off as long as they can.
But being late with a tax return could have negative consequences if you owe the IRS money from the previous tax year. So it’s important to do what you can to get your return filed on time.
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This year, the tax-filing deadline is April 18. Normally, it falls on April 15, but due to the 15th falling on a weekend and Monday, April 17 being Emancipation Day, a Washington, D.C. holiday, filers get a touch more time to submit their taxes in 2023.
That said, the IRS has announced that it will begin accepting tax returns on Jan. 23. And if you’re able to file your taxes in late January rather than waiting, it could benefit you in a couple of ways.
It pays to file early
In some cases, filing taxes in January may not be possible, such as if you’re waiting on tax forms you haven’t received. But if you have a simple tax return — say, all you need to do is report income from a single salary and interest income from your savings account — then you may be in a good position to file your taxes at the end of this month. And doing so has its advantages.
For one thing, the sooner you file your tax return, the sooner your refund can hit your bank account. Many people have been struggling with bills due to inflation. If that’s the boat you’re in, then getting your money a few months sooner could help you better manage your expenses.
You should also know that if you file your tax return early and find out that you owe the IRS money, you won’t have to pay your tax bill the day you submit your return. Rather, you have until the April 18 deadline to get that payment over to the IRS, and you won’t accrue interest or penalties on your unpaid taxes until that deadline passes.
Another good reason to file your taxes early? You might prevent fraud. If someone gets a hold of your Social Security number, they might attempt to file a tax return in your name and steal your refund. If you file your legitimate return first, that fraudulent return will get rejected on the basis of being a duplicate.
Finally, filing your taxes in January could just plain leave you with one less task to worry about. And that alone makes an early filing worthwhile.
Don’t delay
You don’t necessarily have to stress yourself out to file your taxes in January if you aren’t ready. And to be clear, rushing through the process is never a good idea, so if it’s between that and filing in February or March, do the latter. But if you happen to have all of your tax forms available and you have the time, filing your tax return in January could be a smart move.
Our picks for best tax software
Our independent analysts pored over the perks and user reviews for the most popular tax provider services to land on the best-in-class picks to file your taxes. Get started by reviewing our list of the best tax software.
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