How Early Can You File Your Taxes For 2023?

As the end of December nears and families around the country prepare to ring in the new year, there are plenty of last-minute tax moves that can legally reduce your tax bill. Some of those moves, like topping off certain types of tax-advantaged accounts, can even be made until up to the tax filing deadline of April 15, 2024.

Either way, the start of a new year always means wrapping up unfinished financial business from the previous year. This includes running the numbers (or using tax software) to see if you paid enough in taxes overall, or if a surprise tax bill is coming our way. For some people, it also means figuring out what the government owes them, or assessing how big (or how disappointing ) their tax refund is going to be.

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While many Americans like to wait until the last minute to file, there are plenty of reasons to file taxes as early in the year as you possibly can. But, how early can you file your tax return for 2023 after 2024 begins? Read on for all the important details.

How Early Can Americans File Taxes For 2023?

According to Andrew Phillips, who serves as Director for The Tax Institute at H&R Block , Americans can start e-filing their tax returns in January. Phillips says the IRS usually announces the specific date when e-filing opens in late December or early January, but that date hadn't been published as of this writing. The date is estimated to be around January 22nd or 23rd .

That said, taxpayers who are employed, self-employed or earning other types of income will need to wait for all the forms they need to become available before they file.

"Taxpayers with jobs need to wait until they receive a Form W-2 to file," he said, adding that they shouldn’t file based on their last pay stubs of the year.

Investment advisor and professional tax preparer Rob Burnette of Outlook Financial Center in Troy, Ohio adds that most electronically filed returns with direct deposit result in refunds that show up within 21 days after filing assuming there are no errors. The IRS "Where's My Refund?" tool will also be updated so that taxpayers who need to check on the status of their refund in early 2024 can do so within 24 hours after e-filing.

Start Preparing Early

Even if you have some waiting to do, it's good to know that the ability to file taxes for 2023 is only a few short weeks away. Phillips also points out that now is a good time to make an appointment with a tax professional if you want to get moving on your tax return as soon as you can next year. For people who file on their own, now is as good a time as any to start researching tax software products that can make the process easier.

Tax expert Timothy P. Speiss of Eisner Advisory Group, LLC adds that organizing records is a good way to start preparing for next year, and a process you can start right now.

"It helps avoid errors that can slow down refunds and may also help find overlooked deductions or tax credits," he said.

For example, making a list of all the forms you need to complete your filing and other details can be especially helpful. Most income is taxable, says Speiss, including unemployment compensation, refund interest and income from the gig economy and digital assets.

"Taxpayers should gather Forms W-2, Wage and Tax Statement, Forms 1099-MISC, Miscellaneous Information, charitable gifts made, 2023 estimated tax payments made, and additional other income documents before filing their return," he said. "Tax deductions and related documentation should also be accumulated."

On top of gathering records, taxpayers should also make sure to notify the IRS of an address change and be sure to notify the Social Security Administration of any legal name changes as soon as possible, said Speiss.

Reasons To File Early

While you can wait until March or even the tax filing deadline of April 15th, 2024 to file your 2023 return without any problems, there are a number of benefits that can apply when you file early.

First and foremost, Phillips says that filing as soon as possible will ensure you get your refund as fast as you possibly can. Filing early can also give taxpayers the chance to secure a tax refund advance early on if they want to, even though these loans should typically be avoided. Either way, this benefit of filing early only applies to taxpayers who are actually getting money back.

Speiss points out that taxpayers who wind up owing their state or the federal government can also benefit from getting started on taxes early since it gives them more time to prepare for repaying the money they owe. In some cases, taxpayers may even have time to make some financial moves to reduce or eliminate the amounts they owe, such as contributing to a Health Savings Account (HSA) or certain tax-advantaged retirement accounts.

Then there's the issue of tax-related identity theft. The IRS says this type of fraud takes place when someone steals personal information like your Social Security number (SSN) and uses it to file a tax return, then routes your refund to their own account. Speiss says that filing taxes early minimizes the opportunity to become a victim of this fraud.

Don't Rush Your Taxes

While it's smart to know how early you can e-file next year and it's possible your tax return is simple enough to move it through the process as soon as you can in 2024, you should make sure you have all the forms required for an accurate return before you file. You'll have the option to amend your return if you make a mistake, but doing so can be stressful and also mess up various calculations you made to reduce your tax bill along the way.

Burnette says that, due to the issues that can pop up when you make a mistake, the importance of filing an accurate return cannot be overstated.

"Be sure to have all your Form W-2s, Form 1099s and other related reporting tax information available for your return preparation," he said. "Most of the tax forms are copied to the IRS and your filed return will be matched against the data the IRS has regarding your return. If the IRS data doesn’t match your return, any refund you may be due will be delayed."

By Robert Farrington, Senior Contributor