If you’re someone who doesn’t rush to file your taxes, you’re not alone. Nearly 1 in 4 Americans say they wait until the last minute to file, according to a 2025 survey by IPX1031, a financial services firm.
But there are practical reasons to consider filing early, starting Jan. 26, when the Internal Revenue Service opens the federal tax filing season.
And this year, timing could matter more than usual, as IRS staffing cuts have added operational strain, according to the National Taxpayer Advocate Service, an independent watchdog within the IRS.
Here are four reasons tax experts say filing well ahead of the April 15 deadline may be worth considering, plus one reason why you might want to wait. While these are general guidelines, you may want to consult a tax professional to determine what’s right for you.
1. You get your refund sooner
One of the most straightforward reasons to file early is speed. Most refunds for electronically filed returns are issued within about 21 days of acceptance if you choose direct deposit, the fastest method for receiving funds. If you file a paper return or receive your refund by mail, expect it to take at least six to eight weeks, per the IRS.
That matters, considering the average federal tax refund runs into the thousands, with IRS filing-season data showing the average refund for the 2024 tax year was just over $3,000.
“Even with IRS staffing issues, early filers are typically first in the queue once processing begins,” Joon Um, an IRS enrolled agent and certified financial planner in Los Angeles, tells CNBC Make It.
2. Extra time to pay taxes you owe
Filing early doesn’t mean you have to pay your tax bill early. Even if you submit your return in January or February, taxes aren’t due until the filing deadline in April.
That buffer can be especially helpful if your return shows a balance due. Preparing early gives you time to plan how you’ll cover the bill rather than scrambling at the last minute. This can matter even more for freelancers, gig workers or anyone whose tax withholding didn’t fully cover the amount of taxes they will owe, says Randy Bruns, a certified financial planner in Illinois.
3. Advantages when applying for financial aid, loans or housing
A completed tax return is often required to move forward with major financial steps, including qualifying for a mortgage, applying for income-restricted housing lotteries or verifying eligibility for health insurance subsidies.
In those situations, a filed return can serve as income verification because it reflects what you actually earned over the year, rather than an estimate. That can be especially helpful for people with variable income, including self-employed workers or freelancers, says Bruns.
In some cases, a year-over-year drop in earnings can make you eligible for certain income-based programs, including health insurance subsidies and some housing programs. Having a recently filed return can help document that lower income when proof is required and allow eligibility to be reviewed sooner, Bruns says.
For Affordable Care Act coverage, eligibility is based on projected income, but a recently filed return can still help support a claimed income drop if an application is flagged for verification.
“It doesn’t override projections, but it can support them and speed up resolution when questions arise,” says Bruns.
4. Head off scammers
Filing early can reduce the risk of tax-related identity theft, which often happens at the start of the filing season, according to Turbo Tax.
Criminals can use stolen Social Security numbers to submit fraudulent returns and claim refunds before the legitimate taxpayers file. When that happens, the real return can be delayed or flagged while the IRS sorts out the discrepancy.
To reduce the chance of getting scammed, the IRS offers an optional identity protection PIN, which blocks anyone from filing a tax return using your Social Security number unless they have the correct six-digit code.
In some cases, you may want to wait before filing
Filing early can make sense for many taxpayers, but it isn’t the right move for everyone.
Early filing tends to work best for people with relatively simple, salary-based income and complete paperwork. Taxpayers with investment income, side gigs or pass-through business income may benefit from waiting, because key tax forms can arrive late or be revised, says Um.
Those taxpayers may want to delay filing until they receive all expected Form W-2s, Form 1099s or Schedule K-1s, since filing before all documents arrive can increase the risk of errors and amended returns, Um says.
“Filing too early and then amending later usually creates more problems than it solves,” he adds.
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