8 Reasons Why You Should File Taxes Early This Year

How Early Can You File For a Tax Refund?

While the federal deadline for submitting your tax return isn’t until April 15th, 2025, most people can — and should — begin submitting their taxes as early as possible.

The IRS will begin accepting 2024 taxes on January 27th, 2025 — but employers and financial institutions have until January 31st to provide all of your tax forms and documents.

Submitting your taxes early isn’t just the fastest way to receive any eligible refunds, but can also help you avoid scams, audits, or tax identity theft.

If you’ve waited until the last minute to submit your state and federal income tax returns in the past, you may want to reconsider this year.

{{show-toc}}

2025 Tax Season Deadlines and Important Dates

Here are the most important due dates for the 2025 tax filing season:

• Returns started being accepted: Monday, January 27, 2025
• Deadline for receiving W-2 and 1099 forms: Friday, January 31st, 2025
• Tax day (due date for 2024 federal income tax returns): Tuesday, April 15, 2025 (midnight local time)
• Extended due date (if you file IRS Form 4868): Wednesday, October 15th, 2025

This means that the earliest you can file your 2024 taxes is January 15th, while the absolute final deadline in most cases is October 15th, 2025.

Do you need to pay to file your taxes?

Not always.

The Internal Revenue Service (IRS) has expanded the Direct File program in 2025 to allow residents in 25 states to file tax returns for free. To qualify, you must either be a W-2 employee, receive Social Security or unemployment insurance, or have an investment income of less than $1,500.

Direct File also now supports users claiming the Child Tax Credit, Earned Income Tax Credit (EITC), and Premium Tax Credit.

If your state doesn’t allow for Direct File, you can use the IRS Free File system, provided your 2024 adjusted gross income was $79,000 or less.

If you're confused about what to claim on your 2024 tax return, it's always a good idea to speak with a certified tax professional.

8 Benefits To Filing Your Taxes Early This Year

Filing your taxes early gives you peace of mind that you won’t get hit with late filing fees or penalties — but it’s also one of the best ways to avoid common tax scams and identity theft.

1. Avoid (or catch) tax identity theft

Scammers can use your personal information — such as if your Social Security number (SSN) was leaked in a data breach — to file taxes under your name, claim bogus income and benefits, and pocket the refund. If this happens, your own tax return will be rejected by the IRS as a duplicate

Last year, the Federal Trade Commission (FTC) received reports of nearly 61,000 cases of tax-related identity theft [*].

You’ll know that you’re the victim of tax identity theft if:

• You get a “duplicate SSN” warning when you try to electronically file your tax return.
• You receive a Letter 4883C from the IRS inquiring about a suspicious tax return that you did not file.
• You get an IRS notice in the mail about an online account you didn’t create, tax transcripts you didn’t request, or earned income from an employer whom you didn’t work for.
• The IRS Taxpayer Protection Program notifies you that they think you’ve been the victim of identity theft.

What to do if you realize you’re the victim of tax identity theft: File a paper tax return, and complete and attach Form 14039 Identity Theft Affidavit. The IRS will mail you a letter acknowledging your form and will work with you to resolve your identity theft case. You should also contact your state tax agency to see if you need to take additional actions.

2. Get your individual tax return quicker

It should typically only take 21 days to receive your refund after you submit your return — but waiting until later in the tax season can push that out significantly.

Last year alone, 1.2 million Americans faced lengthy tax refund delays, including nearly 500,000 who had to wait an average of 22 months.

Pro tip: Make sure to sign up for direct deposit to expedite a faster refund.  

3. Avoid the tax season rush

If your tax situation has changed this year, you’ll want to leave extra time to verify your income and qualifying credits. Starting early can also help you get assistance from a legitimate tax professional, if you need it.

Avoid “ghost” tax preparers: These scammers modify your tax return without your knowledge in order to claim fraudulent credits — and pocket your refund. Shady tax preparers won’t sign your tax return or will ask you to sign a blank tax return form. Check out IRS Publication 4557 for advice on how to safeguard your data when working with a tax pro.

🎯 Related: How To Avoid The 10 Latest IRS Scams This Tax Season →

4. Take time to accurately file and maximize your return

Filing early (or at least starting your taxes early) gives you time to gather your tax information,  check your eligibility for tax credits and deductions, and maximize your refund amount.

Want to know where your refund is? Use the IRS’s Where’s My Refund tool to check the status of your tax return and refund.

5. Give yourself time to save up to pay any owed taxes

If you owe money or more than you expected, filing your taxes early will give you more time to save up the money — as you don’t have to pay until the filing deadline.

6. Shift tax burdens and reduce your tax bill

You can also take time to lower your taxable income or push yourself into a lower tax bracket. Some of the best ways to lower your tax burden are to take advantage of tax credits, contribute to a 529 savings plan or retirement plan, add to your Health Savings Account (HSA), or claim charitable contributions.

🎯 Related: What Is Credit Monitoring? Do You Really Need It? →

7. Avoid penalties and interest from late payments

If you fail to file in time, you can be penalized up to 5% of the unpaid taxes for each month your return is late. Additionally, you’ll also be charged a penalty and interest for not paying — up to a maximum of 25%.

8. Reduce errors and mistakes

Filing an accurate tax return helps you maximize your return and avoid costly and stressful audits.

Before you file your taxes, make sure you take time to:

• Check your official documents for any and all errors
• Make sure you have all the documents you need before filing
• Double-check for any new tax laws or changes that may impact you
• Get tax advice from a CPA, tax accountant, or other personal finance professional

Everything You Need To Know About Filing Your Taxes in 2025

What documents do you need to file your taxes?

At a minimum, you’ll need tax documents that confirm your income for the year, show your personal information, and support deductions and tax credits you’ve applied for. This includes:

• Personal and financial information, including you and your spouse’s SSN (as well as any dependants), any Identity Protection PINs you’ve been assigned, and bank account information for paying taxes or receiving a refund via direct deposit.
• Income sources and investment information, such as a W-2, 1099-G, or 1099 (depending on whether you are employed, unemployed, or self-employed), records of rental, retirement, or dividend income, and income from the sale of stocks, property, or cryptocurrencies — and any tax payments already made.  
• Proof of deductions, including retirement account contributions, education or medical expenses, property taxes and mortgage interest, and charitable donations.

🎯 Related: The 13 Latest Tax Refund Scams To Watch Out For →

What are the standard deductions for 2024 taxes?

Here are the IRS standard deductions for your 2024 taxes:

• $14,600 for single filers and married couples filing separately
• $29,200 for married couples filing jointly
• $21,900 for head of household filers

Individuals who are blind or 65 years of age or older may be eligible for additional standard tax deductions.

Should you file taxes online, in-person, or via mail?

The IRS recommends filing your taxes online through e-filing when possible [*]. You can file electronically by using the IRS Free File, Direct File, or fillable forms — or with commercial tax software, like Turbotax. Submitting a paper return through the mail will take longer to process.

If you’ve been the victim of identity theft and can’t file electronically, you’ll want to file a paper form via mail and include the Form 14039 Identity Theft Affidavit.

🎯 Related: Did Someone Use Your SSN To File Taxes? Do This →

What happens if you miss the 2024 tax year deadline?

If you miss the 2024 tax year deadline, you will start to accrue the “failure to file” penalty. The penalty amount varies based on how late you file and the amount you owe. You can also be charged a penalty for failing to pay, alongside interest for these penalties.

You can avoid penalties by filing and paying any taxes by the 2023 tax deadline. Or you can file for a tax extension if you need more time to file, or apply for a payment plan (if needed) to help reduce future penalties.  

The Bottom Line: Avoid Stress — File Taxes Early

Whether you’re a small business or individual, filing your taxes early has numerous benefits, including reducing the risk of tax fraud.

By filing early and accurately this tax year before anyone else can use your information, you’ll beat fraudsters to the punch and secure a smoother, quicker processing of your return.