The 2022 tax filing season has officially started, as the IRS is now accepting 2022 returns. Here are 5 good reasons to file early.
1. To get your refund. There’s no reason to let the government hold onto your funds interest-free, so file early and get your refund as soon as possible. While legislation delays receiving refunds for tax returns claiming The Earned Income Credit and the Additional Child Tax Credit until after February 15th, the sooner your tax return is in the queue, the sooner you will receive your refund.
2. To minimize your tax identity fraud risk. Once you file your tax return, the window of opportunity for tax identity thieves closes. Tax identity thieves work early during the tax filing season because your paycheck’s tax withholdings are still in the hands of the IRS. If they can file a tax return before you do, they may be able to steal these withholdings via a refund that should have gone to you!
3. To avoid a dependent dispute. One of the most common reasons an e-filed return is rejected is when you submit a dependent’s Social Security number that has already been used by someone else. If you think there is a chance an ex-spouse may do this, you should file as early as possible.
4. To deliver your return to someone who needs it. If you are planning to buy a house or anticipate any other transaction that will require proof of income, you may wish to file early. This is especially important if you are self-employed. You can then make your filed tax return available to your bank or other financial institution.
5. To beat the rush. As the tax filing deadline approaches, the ability to find professional help becomes more difficult. If you need tax preparation services, we recommend that you pull your documentation together and schedule a time to get your tax return filed as soon as you can.
Note, you may not be a candidate for filing early if you have investment accounts that often send corrected 1099 tax forms. If you have partnership interests that generate K-1 tax forms, you should wait until later in the filing season to have your return prepared.