Don't Make This Simple Mistake During Tax Season

The 2025 tax season is officially here, and you have until to get your taxes done.

Tax season can be exciting if you're expecting a big refund, but it can overwhelming if you know you're going to end up owing to the IRS.

You may dread the paperwork, the time, and the stress that comes with doing your taxes, but it might be better to just eat the frog - as they say.

While April 15th may seem far enough away to keep putting off your taxes, waiting too long is one of the biggest mistakes you can make. Here's why.

When Does Tax Season End?

Tax season for the 2024 tax year ends on April 15, 2025, which is the deadline for most Americans to file their federal tax returns. However, the best time to file is typically as early as possible after the IRS begins accepting returns on January 27, 2025.

According to financial services company, IPX1031, 31% of Americans procrastinate on filing their tax returns. Whether your excuse is, "I work well under pressure" or "I'm too busy right now", waiting to file too close to the deadline can put you in a tough position if any unexpected suprises come - such as owing more money than you thought.

Let's say you happen to miss the deadline to file, you can file an extension which pushes the deadline date to October 15th.

Anyone can request an extension on their taxes by filing Form 4868 with the IRS by April 15. Common reasons for seeking an extension include incomplete tax documentation, unexpected life events like illness or family emergencies, or simply needing more time to organize financial records.

Some people automatically receive extensions without having to file a request, including U.S. citizens living abroad, certain military personnel serving in combat zones, and those affected by federally declared natural disasters.

However, it's important to note that filing an extension is not filing an extension to pay what you owe. If you owe taxes and can't pay by the deadline, the IRS offers an installment agreement or payment plan to pay your due balance over time.Taxpayers should still estimate and pay their tax liability by the original April 15 deadline to avoid penalties and interest.

The IRS charges 5% of unpaid taxes per month, capped at 25% of the balance you owe. There is also a late-payment penalty that is 0.5% per month with a max fee of 25% of unpaid taxes. You can find the current interest rates here.

Why Shouldn't Procrastinate

Filing early has several advantages: it allows you to receive your refund sooner if you're owed one, gives you more time to prepare if you owe taxes, and can help protect you from identity theft. Additionally, filing early often means shorter wait times for assistance and less stress as the deadline approaches.

Let's take a deeper dive into what filing too late can mean for you.

Prepare For What You Owe

You might owe taxes for a few simple reasons.

First, if not enough money was taken out of your paychecks throughout the year, you could end up owing.

Second, if you made extra money from things like selling stocks or collecting unemployment, taxes might not have been taken out of that money.

For self-employed people, it can be tricky to pay the right amount of taxes throughout the year since you're responsible for setting aside your own taxes due.

Big life changes, like your kids moving out or getting married, can also affect your taxes.

Lastly, if you earned more money and moved into a higher tax bracket, or if tax laws changed, you might owe more. It's a good idea to check your tax situation regularly to avoid surprises when it's time to file.

The last thing you want is come tax day, you find out you owe and have no time to come up with a plan. Filing early can help you avoid this and any unwanted fees.

Protect Against Identity Theft

Filing your taxes later in the tax season can increase your risk of becoming a victim of identity theft. When you wait to file, you give criminals more time to use your stolen personal information, like your Social Security number, to file a fake tax return in your name.

These scammers often file early in the tax season, hoping to claim a fraudulent refund before you submit your legitimate return.

If a thief files a false return using your information, it can cause some serious problems when you try to file your real taxes. This can lead to your refund being delayed for months while the IRS works to resolve the identity theft case. To reduce this risk, experts recommend filing your taxes as early as possible in the tax season.

Get Your Refund Sooner

Perhaps the simplest reason to file sooner than later is to receive your refund faster if you're owed one. The IRS typically issues most refunds within 21 days for those who file electronically and choose direct deposit. However, some returns may require further review and take longer.

Filing a paper return can significantly slow down the refund timeline, with taxpayers waiting seven to nine weeks on average.

Several factors can affect the timing of your refund, including errors on the return, the need for tax credit verification, and banking or identification issues. The IRS says that it issues more than nine out of 10 refunds to taxpayers in less than three weeks.

According to Bankrate, below are the dates you can expect your direct deposit refund depending on when you e-filed:

• Filed on Jan. 27th, Receive Direct Deposit on Feb. 17th

• Filed on Feb. 3rd, Receive Direct Deposit on Feb. 24th

• Filed on Feb. 10th, Receive Direct Deposit on March 3rd

• Filed on Feb. 17th, Receive Direct Deposit on March 10th

• Filed on Feb. 24th, Receive Direct Deposit on March 17th

• Filed on March 3rd, Receive Direct Deposit on March 24th

• Filed on March 10th, Receive Direct Deposit on March 31st

• Filed on March 17th, Receive Direct Deposit on April 7th

• Filed on March 24th, Receive Direct Deposit on April 14th

• Filed on March 31st, Receive Direct Deposit on April 21st

• Filed on April 7th, Receive Direct Deposit on April 28th

• Filed on April 14th, Receive Direct Deposit on May 5th

However, if you chose an option other than direct deposit, the IRS tax refund schedule is below:

• E-file with refund check in mail - 4 weeks

• Paper file with refund check in mail - 4 to 8 weeks

How to File My Refund

If your tax situation is pretty simple and straightforward, you can likely do your taxes on your own with online tax services. However, you might be wondering if you should do it yourself or use a professional.

If you prefer the old-fashioned way, you can still file a paper return by mail, but keep in mind that it takes much longer to process. Whichever way you choose, remember to include all necessary documents like W-2s and 1099s. The IRS encourages e-filing and is working toward paperless tax filing in the future.

How to Track My Refund

The IRS has made it easier for you to track your tax refund with the IRS2Go app and the “Where’s My Refund?” online tool. These resources provide updates on your refund status, starting 24 to 36 hours after you e-file your return or four weeks after mailing a paper return.

To use these tools, simply enter some basic information, like your Social Security number or ITIN, your filing status, and the exact amount of your expected refund. You can follow your refund through three stages: when the IRS receives your return, when it approves your refund, and when it sends the money.

Once your refund is sent, you’ll just need to wait for your bank to process a direct deposit or for a paper check to arrive in the mail.

File Your Taxes Today

So, what are you waiting for? If you have all the necessary paperwork, you shouldn't put off doing your taxes anymore. Filing your taxes sooner than later can help protect your identity, help you prepare for unforseen circumstances, and help you get that refund check even sooner.

Don't be a part of the 1 in 3 Americans that procrastinate filing their taxes. File today!