Can I File My Taxes in December? What You Need to Know
Explore the essentials of filing taxes in December, including rules, documentation, and submission methods for a smooth process.
Filing taxes is an annual obligation for individuals and businesses, with deadlines typically set in the spring. Some may wonder if it’s possible to file earlier, such as in December. Understanding the rules and implications of early filing can help taxpayers streamline the process and avoid potential complications.
Tax Filing Window Rules
The tax filing window is the designated period when taxpayers can submit returns to the Internal Revenue Service (IRS). For the 2024 tax year, the IRS is expected to begin accepting returns in late January, with a deadline of April 15, 2025. Filing before this window, such as in December, is not permitted because IRS systems are not set up to process returns for the upcoming tax year until updates to tax codes and forms are finalized.
The IRS uses the time before the filing window opens to implement necessary adjustments, such as changes to tax brackets, deductions, and credits. Filing prior to these updates could result in errors or rejections. Additionally, the IRS conducts system maintenance and testing during this period to ensure smooth processing once the window opens. Even within the official filing period, taxpayers should wait until they have all required documents, such as W-2s and 1099s, which employers and financial institutions are obligated to send by January 31.
Required Documentation
Organizing the required documentation is key to a smooth filing process. For individuals, this typically includes W-2 forms detailing annual earnings and tax withholdings, as well as 1099 forms for freelance or rental income. These forms ensure accurate reporting and help prevent discrepancies with the IRS.
Taxpayers should also gather records of deductible expenses, such as receipts for mortgage interest, medical costs, and charitable contributions. Proper documentation of these deductions can reduce taxable income. For example, the mortgage interest deduction allows homeowners to deduct interest on loans up to $750,000. Maintaining organized records is critical for maximizing deductions.
Those with investments will need forms like 1099-DIV for dividends and 1099-B for capital gains or losses. These documents provide the necessary details for calculating tax liabilities related to investments. Taxpayers should also be aware of varying capital gains tax rates, which depend on income levels and holding periods.
Paper vs. Electronic Submissions
Taxpayers can file returns electronically or through traditional paper submissions. Electronic filing, or e-filing, is faster and more efficient. The IRS promotes e-filing with tools like the Free File program, available to taxpayers with an adjusted gross income (AGI) of $73,000 or less for the 2024 tax year. E-filing reduces errors and expedites processing.
Paper submissions, on the other hand, require manual handling and can lead to significant delays, especially during peak filing periods. While electronic returns are typically processed within 21 days, paper filings may take six weeks or longer. E-filing also enables faster refunds through direct deposit, whereas paper checks take additional time to issue and deliver.
Confirming Return Acceptance
Confirming acceptance of a tax return is important. E-filers generally receive acknowledgment within 24 hours, allowing them to quickly address any errors if the return is rejected. This prompt feedback offers reassurance that the return has been successfully submitted.
Paper filers face longer waits for confirmation due to the manual nature of the process. To avoid uncertainty, paper filers are advised to use certified mail with a return receipt, which provides proof of submission and can help resolve disputes over filing dates.
Possible Processing Timelines
Once a tax return is accepted, processing times vary depending on the method of submission and the complexity of the return. For e-filers, processing usually takes around 21 days if no issues arise. Refunds issued via direct deposit are faster than those sent by paper check.
Paper returns, however, can take six weeks or more to process. Delays are more likely during peak filing periods or years when IRS staffing is limited. Returns flagged for review—due to errors, incomplete information, or claims for certain credits like the Earned Income Tax Credit (EITC)—may face additional delays of weeks or even months.
Taxpayers can track their return status using the IRS’s “Where’s My Refund?” tool, which provides updates at three stages: return received, refund approved, and refund sent. This tool requires the filer’s Social Security number, filing status, and exact refund amount. For those who owe taxes, timely submission and payment are crucial to avoid penalties and interest charges, which accrue daily.