Skip to footer

The best time to file your tax return

The best strategy to avoid penalties, interest, and refund theft, is to file your taxes as soon as you have your paperwork.

|
Damian Dovarganes/AP/File
Tax forms are displayed in an office in California.

Timing is everything, especially when it comes to filing your tax return. Miss a deadline by a day and you could be in for a world of hurt — and penalties. It’s never good to be late, but there are advantages to filing at different times depending on what you’re trying to accomplish.

Objective: avoid penalties and interest

Best time to file: by the annual April deadline. Missing the tax-filing deadline leaves you open to a late-filing penalty of 5% of the amount due for every month or partial month your return is late. You can get an extension, but you have to request one by the April deadline. And don’t be one of those people who mistakenly think they don’t have to pay their taxes in April if they get an extension. If you don’t, you’ll owe interest, and the IRS might also assess a late-payment penalty, which normally costs 0.5% of the outstanding tax per month.

Objective: avoid refund theft

Best time to file: The minute you have all your paperwork. Tax-identity theft is a growing problem. Between 2010 and 2013, the number of taxpayers affected annually shot up from about 271,000 to 2.4 million, according to a 2015 report from the Treasury Inspector General for Tax Administration. It generally happens when a criminal accesses your personal information and files a tax return under your name to pocket the refund. Click here to learn what to do if you’re a victim. But if you file before a criminal does, there’s no refund to steal — in theory, at least.

To beat the criminals to the punch, file as soon as you have your W-2s and other paperwork. That could mean completing your return in February or even earlier — the IRS typically begins accepting tax returns in mid-January, and employers usually send out W-2s by the end of that month.

Objective: file as cheaply as possible

Best time to file: before March 15. Tax software providers tend to raise prices during the 30 days before the April deadline. And we’re not just talking about the price of the software going up — the fees to file state returns and e-file often head north as demand peaks.

Keep in mind that you might be able to score free tax software, especially if your taxes are uncomplicated or you fall into a middle- or low-income bracket.

Likewise, if you’re hiring a human tax preparer, avoid the rush. The average fee to expedite a return is $88, according to the National Society of Accountants.

Objective: get your refund quickly

Best time to file: anytime, as long as it’s electronically. If you e-file, the IRS will likely issue your refund within 21 days. To get it as soon as possible, have it direct-deposited into your bank account. Old-school paper returns are typically processed more slowly, and refunds can take six to eight weeks to arrive.

E-filing gives you a better idea of where your return stands, too. After you e-file, the IRS notifies you when it receives your return, when it approves your return and when it sends your refund.

Tina Orem is a staff writer at NerdWallet, a personal finance website. Email:torem@nerdwallet.com.

This article first appeared at NerdWallet.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.
editor@csmonitor.com
Subscribe
Mark Sappenfield
Editor

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

Subscribe to insightful journalism

QR Code to The best time to file your tax return
Read this article in
https://www.csmonitor.com/Business/Saving-Money/2016/0712/The-best-time-to-file-your-tax-return
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe