What Is the Best Time to File Taxes?

The best time to file your annual income tax return depends on your circumstances, such as whether you anticipate a refund or will owe the government. This decision influences how quickly you receive a refund and how long you have to plan for a tax payment. Understanding the tax season’s structure helps you create a filing strategy that works for you.

Key Dates in the Tax Filing Season

The Internal Revenue Service (IRS) establishes a distinct period each year for accepting and processing tax returns. This window opens when the agency begins accepting returns, which is in late January. For the 2024 tax year, the IRS will start processing returns on January 27, 2025, marking the beginning of the tax season.

The tax season concludes on Tax Day, the deadline for filing individual returns like Form 1040. The default deadline is April 15, making April 15, 2025, the final day to file for the 2024 tax year without an extension. If April 15 falls on a Saturday, Sunday, or a legal holiday, the due date moves to the next business day.

Filing Early in the Season

For many taxpayers, filing as soon as the IRS begins accepting returns is a good approach. The primary motivation for early filing is to accelerate the receipt of a tax refund. The IRS issues most refunds within 21 days of electronic filing, so submitting a return in late January could mean having your refund by mid-February.

Beyond a faster refund, filing early offers a security benefit. Submitting your return as soon as you have all necessary documents, like your Form W-2, protects you from tax-related identity theft. This fraud occurs when a thief uses your stolen information to file a fraudulent return and claim your refund. If you file first, the fraudulent return submitted later will be rejected by the IRS.

Even for those who discover they owe taxes, filing early can be a prudent move. Submitting your return in January or February does not mean you have to pay the amount owed at that time, as payment is not due until the April 15 deadline. This gives you several months to arrange for the payment without the stress of a looming deadline.

Filing Closer to the Tax Deadline

Waiting until March or early April to file is a strategic choice for taxpayers who owe the IRS. By filing closer to the deadline, you delay the tax payment, allowing you to hold onto your funds for a longer period. This can be advantageous for cash flow management or to allow the money to accrue interest in a savings account, as payment is not due until April 15.

Another common reason for delaying is to wait for complete and accurate tax documentation. While employers are required to send Form W-2s by January 31, other forms may arrive later. This is true for investors who may receive corrected 1099 forms, or for individuals with interests in partnerships who must wait for a Schedule K-1, which often does not arrive until March or later.

Filing prematurely with incomplete information can lead to the need to file an amended return, Form 1040-X, which can be a complicated process. It is often more efficient to wait until you are certain you have received all necessary tax documents. This ensures the accuracy of your initial return and avoids potential complications with the IRS.

Requesting a Tax Filing Extension

If you cannot meet the April 15 deadline, the IRS provides an automatic six-month extension to file your return, moving your due date to October 15. This can provide valuable time to gather missing documents, consult with a tax professional, or deal with unexpected life events without incurring a late-filing penalty.

To receive the automatic extension, you must submit a request by the original tax deadline. This can be done electronically or by mailing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. The extension is granted automatically without needing to provide a reason to the IRS.

An extension to file does not grant an extension to pay. You must estimate your tax liability for the year and pay any amount you expect to owe by the April 15 deadline. Failure to do so can result in late-payment penalties and interest charges accruing on the unpaid balance.