The IRS has officially opened the 2024 tax filing season! But when should you file your return? While some may benefit from waiting, there are several good reasons to file early.
- Get Your Refund Faster π° If youβre expecting a refund, why let the government hold onto your money? Filing early ensures you receive your refund as soon as possible. Keep in mind that returns claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) may experience delays until after February 15.
- Reduce Fraud Risk π Filing early helps protect against tax identity theft. Fraudsters attempt to file false returns using stolen Social Security numbers, but once you submit your return, their window of opportunity closes.
- Avoid Dependent Disputes π¨βπ©βπ§ If an ex-spouse or another individual might claim your dependent, filing early can prevent your return from being rejected due to duplicate Social Security number usage.
- Provide Proof of Income π‘ Planning to buy a home or secure a loan? Many lenders require a filed tax return as proof of income, especially for self-employed individuals. Filing early ensures your financial documents are ready when you need them.
- Beat the Last-Minute Rush π As April 15 approaches, tax professionals get busier, and appointment availability becomes limited. Filing early gives you time to gather documents, address any issues, and avoid the stress of last-minute filing.
No matter your situation, having a plan in place for tax filing can make the process smoother and less stressful. Get organized, file early if it makes sense for you, and take control of your tax season!