Today is April 13th, and if you haven’t filed your taxes yet, you’re definitely not alone. However, waiting until the last minute can be a costly habit.
The crucial factor here is timing. People who file early often get their refunds weeks ahead and minimize the chance of errors or overlooked credits. That additional time can be redirected to paying bills, saving, or even investing—small gains that can accumulate over a lifetime.
As Mark Steber, chief tax officer at Jackson Hewitt Tax Services, points out, “The tax return is the biggest financial transaction you make every year, and you’ll keep updating it for decades.”
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Filing early not only helps mitigate timing issues but also offers a protective barrier against identity theft, as it locks in your return details quickly.
“It’s probably wise to establish some best practices, one of which is not waiting until the last minute to prepare your tax return,” Steber advised.
While early filing won’t change how much you owe, it does influence your financial moves afterward. Getting your refund earlier allows more time to tackle high-interest debt, build an emergency fund, or invest. This process can become complex over the years, though.
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The IRS manages around 100 million refunds each year, summing up to over $400 billion. This amount highlights the significance of both the money and the timing for taxpayers.
If you owe money to the IRS, timing becomes crucial. As Steber puts it, “If you’re going to borrow money, you should’ve known that months in advance to allocate funds differently and avoid unpleasant surprises.”
Filing before the deadline is also a safeguard against fraud. Once a return is submitted, it becomes much harder for identity thieves to file a fraudulent return in someone else’s name.
Steber adds, “Filing early means you’ll get your money sooner, but more importantly, you’re protecting your data from identity thieves and those who might try to exploit the system.”
Additionally, those who rush to file at the last minute often make mistakes, which can lead to reduced refunds or even more owed. Paying attention to your tax return year after year can save you money, reduce stress, and ultimately lead to larger refunds down the road.
