What Happens If You File Your Taxes in January Instead of April? Here’s What Accountants Say
Written by
Martin Dasko
Edited by
Zuri Anderson
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According to IRS data, the average tax refund was $3,151 for the 2025 tax filing season. A recent Piper Sandler analysis, shared by CBS News, projected that the average tax refund would increase by about $1,000 per person. This means that the average refund could reach $4,151.
The IRS opened the 2025 tax season on Jan. 27, 2025, but has not yet announced when the 2026 season will open, as this information isn’t available until January. While you can’t file your 2025 taxes until the IRS announces the schedule for the 2026 tax season, you can still prepare your documents in advance.
GOBankingRates consulted with accountants to determine what would happen if you filed your 2026 taxes in January instead of April to get ahead of the process.
What Are the Benefits of Filing Your Taxes in January?
These are some of the benefits of filing your taxes in January.
You Get Your Refund Faster
“The IRS generally issues refunds within 21 days of filing if you e-file your tax return,” said Cristina Wiebelt-Smith, a certified public accountant (CPA) and wealth advisor at Gertsema Wealth Advisors. “The earlier you file, the earlier you can have that refund in your hands.”
If you file as soon as you have all of your documents, you may have your return processed faster and receive your refund sooner. This means that you’ll have the funds in your account and can build some momentum with your finances early in the year.
Lower Preparation Costs
Chastity Wilson, the chief tax officer at CLA, noted that you can spend less on preparation costs because you avoid the peak-season rush fees charged by many accountants in April. You may even get a deal if your accountant is looking for extra business during the slower months.
Better Help From Tax Professionals
Mark Luscombe, a CPA and principal analyst at Wolters Kluwer Tax & Accounting, noted that you get better help from a tax professional when you file early.
“By April, you may feel more stress to get your tax return filed on time, and tax professionals are under a lot of pressure, as well, and may even suggest filing for an extension to file,” he explained.
Identity Theft Protection
“Filing early may protect you from scammers who use your name and Social Security number to file fraudulent tax returns and claim false refunds,” warned Wiebelt-Smith, “When the IRS receives two different returns with the same Social Security number, the second return filed will be rejected.”
It’s worth pointing out that the IRS flagged 2.1 million tax returns for potential identity theft during the 2024 filing season. When this happens, the IRS sends a letter to taxpayers requesting that they verify their identity before a refund can be issued.
If you don’t file early and get stuck in this process, it will further delay your refund. Filing early is the best way to avoid the delay these scams.
Avoid Tax Season Stress
Filing early eliminates much of the stress of tax season, as you get it over with early. It’s normal to procrastinate when preparing your taxes, as many of us dread the process.
“The sooner you can get your documents gathered and have an idea of whether you will owe or get a refund, the faster you can eliminate some of this stress,” Wiebelt-Smith added.
What Are the Setbacks of Filing Your Taxes Early?
You could miss out on a few things if you file your taxes early in the year.
You May Not Have All of Your Documents
Many important tax documents may not arrive until the end of January or even later. Wiebelt-Smith added, “It may not be possible to file in January because the deadline for businesses to issue W-2s and 1099s is Jan. 31. Therefore, you may not have all of your tax documents necessary to file a complete and accurate tax return by the end of January.”
If you have a brokerage account, you’ll want to wait for your final 1099s to arrive so that you can file a complete and accurate tax return.
Missed Deductions
“Some expenses and state-specific credits aren’t finalized until later,” remarked Wilson. By filing early, you can miss out on deductions that haven’t been settled yet. This is why you want to ensure that you have received all of the relevant documents and data before you file your tax return.
Wilson also emphasized that filing later gives you more time to plan, which can be beneficial if you owe money. Also, if you discover that you’re missing key pieces of data or important documents, you have time to gather everything without scrambling at the last minute.
You Have Less Time To Save
“The most commonly cited reason to file early is to get a refund more quickly,” shared Luscombe. “Of course, if you owe money with your tax return, that might be a reason to file in April. While it can be exciting to get your refund faster, if you suspect you owe money, you’ll have less time to save for it.
New Tax Bills
“When there is a new tax bill, such as the One, Big Beautiful Bill, passed on Jul. 4, 2025, we have to wait for final guidance on how to apply some of these new regulations and for changes to tax forms,” remarked Wiebelt-Smith. “By waiting to file, there’s a greater chance that tax software will be updated to reflect new guidance and forms.”
If you file before the guidance is issued, you may need to file an amended return.
“Filing early only makes sense once you have all documents and updated guidance,” Wilson concluded. “We recommend preparing returns as soon as everything is in hand, usually late January or early February, to enjoy the benefits without the risks.”
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