The 2025 tax season is upon us. The United States Internal Revenue Service announced the date that tax returns will start being accepted: January 27. Most taxpayers’ returns will only be due on April 15, but there are a number of good reasons to get started on collating your return as early as possible.
Tax season 2025 is here and it’s time to start getting your return together
The benefits of submitting your tax return as soon as possible include getting the most out of your refund, getting paid any funds due as soon as possible, and avoiding being targeted by scammers. You’ll also avoid the stress of rushing to get your return together at the last minute as if there are any complications, you will be under more pressure with the deadline looming. This is especially true if you are unsure whether you owe the taxman or if you should be getting a refund.
You should also start researching your state’s tax requirements, as some changes have been implemented for 2025. Some states, for example, have lowered their income taxes. Other possible changes include credit and rebate adjustments, retirement contributions, or compliance and filing rules, among others.
With the 2025 new year fast approaching, it’s time for people to start thinking about taxes. It is possible to lose track of what’s happening, so one must remember important dates.
7 Benefits of getting started on your tax return as early as possible
Below are the reasons why submitting your tax return as soon as you can will benefit you in the long run and ensure you get the most out of the process with the least amount of stress.
1. Get your refund paid out as soon as possible
If you are expecting a tax refund after filing, the best reason to submit your return early is to get paid out at the earliest opportunity. This way you can make the most of your funds and save, invest, or spend as you choose.
Figures indicate that around two-thirds of tax filers who submitted their returns on time in 2024 received refunds of an average of $3,000. If it works out that you overpaid on your taxes last year, it’s in your best interests to get it back from the IRS to start working for you by earning interest or using it for pressing needs, for example.
Most tax refunds are paid out within just three weeks of submitting a tax return.
2. Find out if you owe money so that you have time to get it together
If you expect that you owe money to the IRS or if you’re not sure, it’s in your best interests to start on your tax return soon. It doesn’t matter when you file your tax return in terms of the date that the payment is due because you’re not liable to pay any taxes that you owe for 2024 until the deadline of April 15, 2025.
You should still find out what the amount will be to avoid surprises when the deadline is near, and if you need to make a payment plan with the IRS, it’s best to start budgeting for that now.
3. Lower your risk of tax fraud or identity theft
Scams and fraud are rife in tax filing season and criminals are getting cleverer and more sophisticated in their strategies every year. Between 2021 and 2022, tax-related fraud concerning refunds shot up exponentially from $16 million to more than $800 million. This kind of fraud involves someone stealing your identity to file and claim refunds under your Social Security number.
One of the easiest ways to prevent this is to file your tax return early before anyone has a chance to do it under your name.
4. Test the new tax software
One benefit of tax software is that all of the leading services offer facilities to complete your entire tax return and find out how much your refund will be or how much is due to the IRS at no cost. You pay for tax software when you file or when you use a specific service, like one-on-one support.
5. Identify snags that you may need help with
If you’re not totally confident in your ability to handle your own tax return, getting started on the process with highlight areas where you may need professional help. It’s a good plan to leave time for a specialist to do their work if you find yourself in trouble and you’ll also avoid a situation where they may be fully booked at the peak of submission time.
6. Reduce the stress that filing taxes causes
Even submitting an uncomplicated tax return comes with some anxiety and the smallest bump in the process can cause frustration. Leaving yourself time to take a break if you encounter complications will save some mental energy and allow you to clear your mind and tackle the issue with a fresh eye.
7. Save money on tax software
It’s not possible to apply this across the board, but many companies increase the price of their tax software as the filing deadline draws closer. Some also offer discounts and coupons if you purchase at the beginning of the season, so you should start selecting the program that works best for you and check if you can save money by signing up sooner.
Be aware of changes to credit card taxes before you file your 2025 returns
Maybe you haven’t thought about it before, but some of your credit card rewards may be subject to tax. The United States Internal Revenue Service has different requirements for the rewards issued on your credit card spending depending on how they’re issued. It’s important to remain well-informed so that you don’t end up with surprises after filing an incorrect tax return. Remember to be discerning about where you draw your information and consult the IRS’s official channels for help.