Filing taxes is an annual rite of passage that most of us must endure. After the hectic holidays, the initial few months of the year can be a challenging time as folks try to return to their normal lives and make good on their new year’s resolutions. And adding to that stress for many during this time is the start of tax season.
It’s probably fair to say that many approach tax season with mixed emotions, with common questions including the correct application of the tax code and determining the optimal time to file taxes. In other words, should I file my taxes early or wait? Like many important decisions, there are pros and cons to both options, and the best choice will depend on each individual taxpayer’s unique circumstances.
Many key decisions in life come down to timing, and with the IRS accepting and processing returns as early as January 26, 2026, for this tax season, taxpayers will need to carefully analyze the best timing for filing their taxes. Here are a few considerations to ponder:
Benefits of Filing Early
- If you anticipate a refund, filing taxes early usually means you get your money sooner. The IRS often processes early returns quickly, expediting the tax refund timeline. Taxpayers expecting a refund can think of that refund as excess payments they made to the IRS throughout the year that are now being returned. Receiving that refund as soon as possible makes financial sense. NOTE: filing electronically and opting to receive the tax refund by direct deposit can expedite your refund even more.
- If you owe money to the IRS, filing early may give you additional time to fully understand your tax liability and arrange for payment. However, payments do not have to be made until the actual tax filing date (even if you file your tax return early).
- If you are concerned about identity theft. Filing early can lessen the time and opportunity for an identity thief to fraudulently file for you—and potentially steal your refund!
- The tax filing process can be overwhelming and stressful, especially for taxpayers with complicated tax situations. Filing taxes early removes the pressure of an approaching deadline and can offer peace of mind for the taxpayer. Filing early also provides a better opportunity to secure quality tax services, often at more favorable pricing, and allows time to ensure that your return is accurate. This will help reduce the possibility of errors that could result in pesky amendments and updates to your filing.
Benefits of Filing Later
- You don’t have all your tax information (1099s, schedule K-1s, etc.). For example, with certain types of investment products, it is common for 1099s to arrive in mid- or late-February. An incomplete or inaccurate tax return could result in unwanted amendments to the tax return. Amended returns have also historically been a target for IRS audits.
- You need additional time to use tax-advantaged strategies, such as making tax-deductible IRA contributions for the tax year (if eligible) or establishing an employer retirement plan (e.g., SEP IRA) if the taxpayer is filing as a business owner.
- If you experience any type of major life events like marriage, divorce or purchasing a home, delaying the tax filing can give you time to better understand how these changes affect your taxes.
Ultimately, deciding whether to file your taxes early or wait until the deadline depends on your financial situation and personal preference. And given all the recent regulatory activity, including The One Big Beautiful Bill and SECURE Act 2.0, etc., it’s particularly important to carefully consider the tax and financial implications and consult with a tax advisor before making any tax filing decision.
IMPORTANT DISCLOSURES: The information provided is based on internal and external sources that are considered reliable; however, the accuracy of this information is not guaranteed. This piece is intended to provide accurate information regarding the subject matter discussed. It is made available with the understanding that Benjamin F. Edwards is not engaged in rendering legal, accounting or tax preparation services. Specific questions on taxes or legal matters as they relate to your individual situation should be directed to your tax or legal professional.