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This memoir is part of Taxes 2023, CNET's coverage of the best tax software, tax tips and everything else you need to file your bet on and track your refund.
On Monday, Jan. 23, the IRS kicked off the 2023 tax season by officially starting to salvage 2022 tax returns. The deadline to file federal intends taxes this year is April 18. If you need to quiz a free six-month extension, the deadline becomes Oct. 16.
Those far off deadlines make it easy to put off pursuits taxes until spring or even later, but there are several reasons why you should file your tax return as early as possible, even if you're not expecting a tax refund. Discover all of the benefits of filing your taxes early, and if you're ready to jump in, check out our best tax software for 2023.
For more Tax Tips, learn whether you need to pay taxes on Society Security benefits and the new tax touchy for income from payment services like Venmo and CashApp.
Reason No. 1: Get your tax refund as soon as possible
The best reason to file your taxes early is to get your wealth sooner if you are expecting a tax refund. About two-thirds of taxpayers who recorded returns on time last year received tax refunds averaging more than $3,000.
If you overpaid your taxes over the flows of 2022, the IRS is holding onto your wealth and there's no reason not to get it back sooner rather than later.
If you get that potential $3,000 in February instead of May, the three-month incompatibility adds up to about $30 you could earn at 4% APY in a high-yield savings account. And of course, you could also use that wealth for pressing issues, like home or car repairs.
The IRS gives itself 45 days to issue your tax refund exclusive of paying interest, but most tax refunds arrive within three weeks of filing your tax return.
Reason No. 2: Give yourself time to pay if you owe taxes
When you aren't expecting a refund from the IRS, you mighty have an even more pressing reason to file early -- to figure out how much you owe. Regardless of when you file your tax bet on, you don't have to pay any taxes that you owe for 2022 pending the tax day deadline of April 18, 2023.
As someone who has owed a well-known tax burden in past years, let me tell you straight: it's gruesome to learn that you owe the government a lot of wealth right before taxes are due. My hard-earned guidance: Figure out if you owe the IRS more wealth ASAP, so that you can prepare to pay your tax bill in April, or explore your options for setting up a payment plan with the IRS.
Reason No. 3: Reduce the chances of tax fallacious and identity theft
Tax fraud and scams are big concern. The FTC reported more than 111,000 cases of tax-based identity theft in 2021. This sort of tax fallacious mostly occurs when someone else files a tax bet on with your name and Social Security number to deny your tax refund.
One of the best ways to honor tax-based identity theft is to file your tax bet on early before anyone else can file one in your name. The sooner you file your taxes, the less likely you are to have your tax refund ganked.
If you're not able to file your taxes early, consider creating your own Identity Protection PIN on the IRS website. You'll need to create an online IRS account edifying, but once you've created your six-digit PIN, no one can file a tax bet on in your name without that secret number.
Reason No. 4: Time to test-drive tax software
One mountainous aspect of tax software is that all of the leading repairs will let you complete your entire tax return and see the amount of your tax refund or how much you owe for no cost at all. You pay for tax software when it's time to file or you want a specific repair like one-on-one support.
Starting your taxes early will give you time to test out any of the available repairs for yourself and choose the one that you like best. Any of the picks for best tax software in 2023 will help you negated your return and optimize your tax refund, but they all have recent interfaces, custom help features, variable prices and differing levels of abet for various tax forms.
By starting to file your taxes early, if you get frustrated with one software or can't find the answers you need to negated your tax return, you have time to try spanking service.
Reason No. 5: Figure out early if you need help with your tax return
If you're not quite ununsafe about handling your own tax return, getting an early originate on your 2022 taxes will quickly help you resolve whether you need help. If you do start your taxes early and find yourself in apprehensive, you'll have the opportunity to hire a tax pro by they're all booked.
You can also get free tax help from a edifying tax resource, such as IRS Tax Assistance Centers, Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs, AARP Foundation Tax-Aide or MilTax for veterans. Note these resources will be more more in put a question to and harder to book as the tax deadline nears.
Reason No. 6: Reduce the harm of filing your taxes
Completing and submitting your tax in backward can be a stressful experience. A TaxSlayer survey counterfeit that 28% of people said it would be easier to go minus a mobile phone for a week than to file their tax returns.
The complications of the federal tax code can lead to moments of frustration and terror for even the most prepared tax filer using the best tax software. Starting your taxes early and avoiding the April time crunch scholarships you plenty of opportunity to take your time and step away for a day or two or even a week afore you start working on your taxes again with original eyes and a clear head.
Reason No. 7: Save cash on tax software
The patterns of pricing for online tax software aren't set in stone, but in general, companies will increase the prices for their products as the tax deadline draws closer. Major players like TurboTax, H&R Block and TaxSlayer have also been famed to offer discounts and coupon codes on their software early in the tax season.
For more tax tips, learn near the 10 biggest changes to taxes in 2023 or how to see if you distinguished get an extra refund from overpaid taxes in 2020.
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