Tax season is here, and it’s time to start thinking about filing your taxes. While many people wait until the last minute to submit their returns, there are several advantages to filing early. Getting your taxes done sooner rather than later can help you avoid the rush and ensure you meet all deadlines. Filing early also allows you to receive your tax refund more quickly, giving you extra financial flexibility. Additionally, filing early gives you more time to address any potential issues or questions that may arise, making the process smoother and less stressful.
IRS begins to accept tax returns from next week
The IRS has announced that you can start filing your tax returns from January 27. The closing date to file your tax returns is April 15. For many, this can be a stressful time, particularly if you are employed part-time or are just starting to work. If this is your first time filing taxes, or if your employment status has changed, the IRS recommends getting in touch with a financial expert who can guide you through the process.
Generally, the requirements to file a tax return are the following:
- Your income is over the filing requirement
- You have over $400 in net earnings from self-employment (side jobs or other independent work)
There are other reasons why you may have to file taxes, including if you are an American citizen who is employed overseas.
The general rule however is that if you are under the age of 65 and earn a gross income of $14,600 or more, you have to file a tax return. If you are over 65, you must file if your gross income exceeds $16,550. These income amounts adjust depending on if you are the head of a household, if you are married and filling jointly, or if you are married and filling separately. Make sure that you are also up-to-date on laws around tax for Social Security if you are a beneficiary.
Filling your taxes early saves time and stress for all
Tax season often brings stress for many. A TaxSlayer survey reveals that 61% of taxpayers feel anxious during this time, with some even preferring things like dental visits over handling their returns. Filing early allows you to address any issues or complications without the pressure of a tight deadline.
This strategy also offers added flexibility. If you spot mistakes or realize you need extra documents, you’ll have the time to sort everything out. Once your taxes are submitted, you can enjoy peace of mind while others are rushing to meet the deadline. This also helps the IRS by reducing processing delays.
Protect your identity, maximize returns
In addition to having peace of mind, filing your tax returns early also means that you can protect yourself from tax refund fraud, where criminals use your Social Security number to submit fake returns and steal your refund. Between 2021 and 2022, the IRS blocked over $800 million in fraudulent refunds.
However, probably the biggest draw to filling your taxes early means that you can maximize your tax refunds. Filing early can lead to larger refunds, as it gives you more time to carefully review deductions and credits. Whether it’s for education expenses or energy-efficient home upgrades, early filing allows you to make sure you’re claiming all the benefits you’re eligible for.
As the new tax season approaches, staying informed about changes in federal and state tax laws is crucial. Tax regulations can shift annually, affecting deductions, credits, and filing requirements. Being up-to-date ensures you maximize your refund and avoid any mistakes or penalties when submitting your return.
