8 Benefits of Filing Your Taxes Early

We’ve all been guilty of procrastinating, whether it’s pulling an all-nighter on that term paper or skipping the gym for the third time this week. But if there’s one thing we love to put off, it’s paying our taxes (that and going to the dentist).

The deadline to file your 2024 taxes is Monday, April 15, 2025. And since most folks receive their most important tax forms by the end of January (and the IRS starts accepting returns around the same time), there’s no good reason to delay filing your taxes.¹ 

Whether you expect a tax refund or a tax bill, filing early works to your advantage (we’ll explain why). Here are eight great reasons to get your act together early this tax season.­

1. Early filers avoid processing delays.

Back in May 2024, the IRS still had 2.7 million unprocessed tax returns to crunch through.² Basically, if you file late—you could be waiting a while for your return to be processed. The solution? File early, electronically, and choose to receive your refund via direct deposit.

According to the U.S. Treasury Department’s Bureau of the Fiscal Service, paper refund checks are 16 times more likely to be lost, misdirected, stolen or uncashed compared to refunds issued by direct deposit.³ Also, be sure to double-check your forms and information. If anything’s incorrect, your tax return can (and most likely will) get delayed.

2. Early filers eliminate tax deadline stress.

Tax season sure is, well, taxing on people’s mental health. In fact, 42% of Americans say they’d rather deal with a dentist appointment than file taxes.⁴ That’s some serious tax hate.

Filing avoidance is so powerful that 30% of Americans admit to waiting until the last minute to file their taxes. And 22% don’t even know that Tax Day falls on April 15.⁵ Look, you can’t just stick your head in the sand and expect Uncle Sam to walk to the other side of the beach.

He’s got time. He’s got sunscreen. He’ll wait.

Any time you’ve got a big, ugly task staring you in the face, it’s best to get it out of the way as soon as possible. Constantly thinking and worrying about something is often much worse than actually doing it. Income taxes are no different. You have to fill out the forms and you have to file them, so just grit your teeth (assuming you haven’t just had a root canal) and get it over with.

Try giving yourself a fake deadline—ahead of Tax Day—to help get your taxes done early. That way, once you’re filed and free, you can sit back and relax (while everyone else pulls their hair out). If you’ve got a simple return, Ramsey SmartTax makes filing quick and easy without hidden fees or sneaky surprises.

But heads up here: If you’re expecting a refund, don’t get excited and go on a shopping spree before you even get the money. Make a budget and tell every one of those dollars where to go and what to do before they show up in your bank account.

3. Early filers get their refunds sooner.

Before we talk refunds, let’s get this straight—a tax refund is not free money. One more time for those in the back: A tax refund is not free money! It’s your money. A big refund means you’ve been giving Uncle Sam an interest-free loan all year. He’s just paying back what’s already yours.

Don’t settle for tax software with hidden fees or agendas. Use one that’s on your side—Ramsey SmartTax.

If your refund is over a few hundred bucks, it’s time to connect with your HR department to adjust your tax withholding. The goal is to have a tax refund as close to zero as possible and increase your take-home pay. Watching those larger paychecks hit your bank account will make you feel like you got a raise.

That said, if the IRS does owe you money, filing early means you’ll get your refund back before the folks scrambling to file on April 15. And if you’re trying to get out of debt or beef up your emergency fund, getting your money back sooner gives you a chance to put those dollars to work right away.

Early filers who plan to itemize their deductions also have a lot more time to hunt down and claim those sweet tax deductions—which calls for more paperwork and a more hands-on approach than simply taking the standard deduction.

Take note: Filing early isn’t just smart—it’s rewarding (and more accurate).

4. Early filers get more time to address errors or issues.

Ever been late to an appointment? It’s chaos, right? You’re zooming around the house grabbing things in a hurry and bolting out the door. Then you get to your car and realize—oops—you forgot your keys, wallet, oversized water bottle, pants . . . you get the picture.

What we’re trying to say is, rushing causes mistakes.

Despite that, 50% of Americans confess to rushing through their taxes (Gen Z folks are the biggest rushers at 60%). But here’s the thing—50% of Americans are also concerned about making mistakes, and 54% find tax filing confusing.⁶

It’s no wonder the IRS crunches the numbers on a bunch of tax returns, says “The math ain’t mathing,” and sends taxpayers millions of math error notices every year.⁷ 

The best way to avoid mistakes? Give yourself time to spot them. According to the IRS, these are some of the most common errors to catch or avoid:⁸

• Filing too early: Wait, isn’t this whole article about filing early? Yes, but there’s a catch—you need to have all your documents first. Forgetting a key form could cost you money, mess up your tax bill, or cause delays.
• Entering incorrect names, SSNs or bank account numbers: Small typos can cause big headaches. Give yourself time to slow down and proofread your return carefully before submitting.
• Choosing the incorrect filing status: It might seem straightforward, but choosing the right filing status isn’t always simple. For example, should you file as married filing jointly or married filing separately? Give yourself the time and space to learn what’s best for your situation.
• Leaving off credits or deductions: Not all tax breaks are obvious. While many people (especially parents) know about the child tax credit, other tax breaks, like the earned income tax credit, are often overlooked. Filing early gives you time to find every deduction and credit you qualify for.

The lesson? Give yourself the chance to take your time. Your wallet—and mental health—will thank you.

5. Early filers are more likely to avoid penalties.

Filing early isn’t just the smartest way to get ahead—it’s the best way to avoid unnecessary penalties or “stupid tax.” Missing the deadline or forgetting to request a tax extension can lead to late fees and interest charges that add up fast.

• Failure-to-File Penalty: If you miss the filing deadline without requesting a tax extension, you’ll face late fees and interest starting at 5% of your unpaid balance per month, to a maximum of 25%.⁹ For example, if you owe $1,000 and file two months late, you’ll rack up at least a $100 penalty plus interest.
• Failure-to-Pay Penalty: If you file on time or request an extension but can’t pay your tax bill in full, you’ll face a much smaller penalty—0.5% of your unpaid balance, capped at 25%.¹⁰ This isn’t ideal, but it’s far better than the failure-to-file penalty, and the IRS will work with you to set up a payment plan.

Filing early not only helps you dodge pesky penalties but also gives you extra breathing room if you owe money. Staying ahead of the deadline means you’ll have a clear picture of your tax situation with plenty of time to come up with your own payment plan (again, if you have a bill)—because let’s be real, last-minute scrambling is never fun.

6. Early filers can protect their refunds from identity thieves.

There you are, feeling good about wrapping up your tax return, and then you click submit . . . bam! Rejected. What happened? Someone using your Social Security number already filed a tax return. Your heart sinks into your stomach as you realize you’re now a victim of tax refund fraud.

It happens more than you think. In fiscal year 2024 alone, the IRS initiated over 2,667 criminal investigations and identified over $9.1 billion tied to tax and financial crimes. While they did catch and convict over 90% of robbery attempts, billions of dollars still wound up in the hands of these thieves.¹¹

Filing early may not completely get rid of the threat of identity theft, but it can protect your refund. If thieves file a return using your Social Security number before you do, the IRS will kick out your return since their records show you’ve already been paid. And if that happens, it can take months to clear up the mess with the IRS and finally receive your refund.

7. Early filers with a tax bill have time to make a plan.

When you’re facing an income tax bill instead of a refund, it’s natural to put off filing as long as possible. But if you go ahead and fill out your tax forms and file them, you’ll know exactly how much you have to pay—and you won’t have to pay in full until Tax Day.

Plus, the more time you have to come up with the money, the less likely you are to bust your budget or drain your emergency fund. So don’t spend the first part of the year with your head in the sand. Get the facts about what you owe, make your plan, and get that tax bill out of the way.

And hey, you can save time and reduce headaches by gathering the right paperwork the first time around. Not sure what you’ll need to have in hand to file your taxes? Download a free tax preparation checklist.

8. Early filers are more likely to get time with a tax professional.

It can be tough to get on a trusted tax pro’s schedule during tax crunch time, and last-minute appointments may even cost more. In fact, if you haven’t set an appointment at least four weeks out from Tax Day, it might be time to look into filing a tax extension.

Avoid the hassle by connecting with a pro as early as possible—especially if you have a complicated situation. That’s where a RamseyTrusted^® tax pro comes in. They know the tax code inside and out and will make sure your return is accurate and on time so you don’t have to stress the details.

Find a tax pro today!

Got a simple return? Knock it out online with Ramsey SmartTax. It’s a budget-friendly software with no hidden fees or sneaky agendas.

And remember . . . you’ve got this!