Filing Early, Refunds, and More: What You Need to Know About Tax Season 2024 Opening on Monday

Tax Season 2024 opens monday. New updates have come about taxes

Tax season for 2024 is set to kick off on Monday, January 29, providing individuals with a deadline of April 15 to file their 2023 tax returns. With approximately a dozen Mondays available, including the starting day, individuals are encouraged to file early for various reasons.

While not everyone may be prepared to file on the first day, especially if waiting for W-2 forms from employers, filing early can bring about several advantages. One primary incentive is the opportunity to receive any tax refunds promptly. Approximately three in four taxpayers are expected to receive a tax refund, making it a significant financial boost for many.

There are additional reasons to consider filing taxes early:

  1. Information Security: Filing early helps in securing your personal information. Once the IRS receives your return, it prevents potential identity theft attempts where someone might try to file a fraudulent return in your name to claim a refund.
  2. Time for Corrections: Filing early provides more time to review and correct any mistakes on your return. Whether you identify an error or your tax preparer does, having extra time ensures that you can rectify any inaccuracies before the filing deadline.
  3. Payment Planning: If you owe taxes, discovering this information sooner allows you more time to arrange the necessary funds. Even if you file early in the tax season, you still have until the April deadline to make the payment without facing potential penalties.

Refund Processing Time: For those filing electronically, the IRS typically issues refunds within 21 days if the return is error-free. However, returns claiming certain credits, such as the Earned Income Tax Credit or Additional Child Tax Credit, might take longer to process.

Individuals filing by mail should be aware that processing paper returns takes more time. The postal service has to deliver the return to the IRS, and manual processing is involved in entering the submitted information. As a result, individuals filing by mail may experience a wait of four weeks or more to receive their refunds.

Checking Refund Status: To check the status of a tax refund, individuals can use the “Where’s My Refund?” tool on IRS.gov or the IRS2Go mobile app. Updates are generally available 24 hours after filing electronically and four weeks after filing a paper return.

In terms of the overall filing outlook for 2024, the IRS anticipates receiving over 128.7 million individual tax returns by the April 15 deadline. Filing early not only ensures timely processing but also allows individuals to address any potential issues promptly.

As the tax season unfolds, individuals are advised to stay informed about updates, utilize online tools for tracking their refunds, and consider the benefits of early filing, particularly for those expecting tax refunds or wanting to address any tax liabilities in a timely manner.

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