While New Year’s Eve celebrations may seem like they just happened yesterday, we’re now in 2024 – and that means it’s tax time.
As the first big financial obligation of the year for most people, tax season can be a hassle, but taking action as early as possible can reap big benefits. In fact, did you know that you can already file your taxes for 2024? Here’s everything you need to know.
When can you start filing federal taxes?
Unlike Tax Day, which usually falls around April 15, federal tax filing season does not begin on a predetermined date.
The IRS sets a different tax season opening date each year based on department preparedness, changes in legislation, and whether there are holidays or weekends to consider. Typically, tax season begins in late January to early February; if you file before then, your tax preparer simply holds your return until the IRS is ready to process it.
This year, the IRS announced that it will begin accepting and processing 2023 federal tax returns starting January 29. Yes, that means the 2024 tax season has already started and you can file now if you feel like it.
You will need to have all the required documents at the time of submission. Be sure to contact your employer if you have not yet received your W-2, and check that you have received your 1099 or other required documents from other sources (such as your 1099-INTs from the banks that paid you interest and 1098 -T from the universities where you paid tuition). Otherwise, you may have to go back and amend your tax return later.
Most people have until April 15 to file their taxes. See the IRS Tax Filing Calendar for more information and key dates for the 2024 tax year.
When can you start filing state taxes?
State tax seasons differ from federal tax seasons. That’s because unlike federal taxes, which are handled by the IRS, state income taxes are handled by each state’s department of revenue. In total, 41 states and the District of Columbia collect state taxes: only nine states do not impose a state income tax.
That said, most states tend to start their state tax seasons in conjunction with their federal filing dates in order to streamline the process for taxpayers. You should check your home state’s department of revenue website to see when state taxes can be filed; most likely, the season started on January 29th as with the federal declaration.
Many states match the IRS timeline, but some deviate. Pennsylvania, for example, has an April 18 tax deadline, and some states like New Mexico and Delaware don’t require residents to file state taxes until May 2 – more than two weeks after the federal deadline.
Why file your taxes early
Most people don’t line up to finish their 1040s at the start of tax season, choosing instead to file them closer to the deadline. But there are many benefits to filing your taxes early, including avoiding tax identity theft, in which a criminal uses your information to file your tax return (and get your refund) before you.
Being proactive and filing your taxes early usually means you’ll receive your return quickly, barring any issues with processing. (An exception: The IRS cannot issue refunds to those who claim the Earned Income Tax Credit or the Additional Child Tax Credit before mid-February.) If you owe money to the government after filing of the question, knowing it as soon as possible can be very useful for creating a payment strategy.
Additionally, there are many issues that can occur when applying close to the April 15 deadline. Because most people wait to apply, customer service lines are more likely to be clogged and websites to be blocked.
If you don’t qualify for free tax services courtesy of the IRS’s Free File program or other low-income filing discounts, you may also end up paying more for assistance later in the season. Tax preparation companies generally make their services more expensive as the deadline approaches.
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