Why You Should File Your Taxes Early—And the Costly Mistake of Waiting
Tax season officially kicked off on January 27, and if you haven’t filed yet, you’re not alone. With the IRS accepting returns, millions of Americans are dragging their feet, hoping to delay the inevitable. But waiting too long could be a big mistake.
According to a recent study by IPX1031, 31% of Americans admit to procrastinating on their taxes—a decision that could cost them in more ways than one. Whether you’re expecting a hefty refund or dreading a surprise tax bill, waiting until the last minute is a gamble you don’t want to take.
Why Waiting to File Could Be a Disaster
Ryan Losi, CPA and executive VP at Piascik, puts it bluntly: “It’s always nice to have your taxes buttoned down early. That way, you know where you’re going to land.” In other words, filing early gives you clarity—on whether you owe money, how much you’re getting back, and what financial moves you need to make.
But that’s just the beginning. Here’s why getting ahead of your taxes this year is a game-changer:
1. If You Owe Money, You’ll Have Time to Prepare
Let’s be real—nobody wants to see a tax bill. For Gen Z filers, the fear is even greater, with 26% admitting they procrastinate because they don’t want to know what they owe (Credit Karma). But ignoring reality won’t make it go away.
If you file early and discover you owe the IRS, you’ll have until April 15 to come up with a plan. That’s two months to save money, budget accordingly, or explore payment options. The later you wait, the fewer options you have—and the bigger the financial strain.
2. Get Your Refund Faster—And Put It to Good Use
For millions of Americans, tax refunds aren’t just extra cash—they’re financial lifelines.
- 37% of filers rely on their refund to cover everyday expenses
- 47% plan to use it to pay down debt
Waiting to file means waiting for that refund—while credit card interest piles up and bills go unpaid. The sooner you file, the sooner that refund lands in your bank account.
And let’s not forget: keeping your refund with the IRS means you’re giving the government an interest-free loan. Wouldn’t you rather put that money to work for you?
3. Stop Tax Fraud Before It Happens
Tax fraud is a real and growing problem. Scammers file fraudulent returns in other people’s names, claiming refunds that rightfully belong to you. By the time you file, the IRS may have already processed a fake return under your name.
The solution? File early. Beat criminals to the punch and ensure your hard-earned refund doesn’t end up in the wrong hands.
4. Know What Documents You Need (Before It’s Too Late)
Filing early doesn’t mean you have to hit “submit” immediately. But starting now means you’ll know exactly what forms you need—whether it’s:
- Brokerage statements (arriving in March)
- Trust beneficiary documents
- Form K-1 for business owners and investors
By gathering your documents now, you avoid the last-minute scramble that could lead to costly mistakes or missing deductions.
Bottom Line: File Early, Stress Less
Filing your taxes may not be the most exciting task, but delaying it could leave you stressed, broke, or even a victim of fraud. The smartest move? Get started now. Whether you owe money, expect a refund, or simply want to avoid the tax season panic, filing early puts you in control.
So, why wait? The clock is ticking—get ahead of the game and file today!
