Your tax refund may be higher this year. Here's how to get it early.
January is a great time for Americans to review their finances and work toward improving them for the new year. It's also a time for many to begin gathering their tax documents ahead of the April 15 filing deadline. And, in 2024, there will be an added incentive for millions of Americans to act quickly — a bigger tax refund.
Refunds last year were smaller for many, the IRS said at the time, because taxpayers wouldn't be receiving an additional stimulus payment "because there were no Economic Impact Payments for 2022." But for those filing for 2023, the refunds could be larger again. While inflation has been problematic during the last few years, the IRS adjusted some provisions to account for that economic pain. Accordingly, they've raised their tax brackets by 7.1%. For those whose income was outpaced by inflation, that could result in a return of as much as 10% more.
But how can taxpayers get that refund as quickly and as smoothly as possible? That's what we'll explore below.
You can file your taxes online with an easy-to-use tax preparation service now.
How to get your tax refund early
By using a top tax preparation service now and by filing your taxes early in the season, before the competition for refund returns intensifies, you'll improve your chances of getting the new, larger refund early.
If you use Intuit by TurboTax, you may even qualify to file for free with expert help if you get your return done before March 31. And, if taxpayers file for an electronic refund versus a paper check, they boost their chances of having their refund directly deposited into their account instead of waiting for the mail to arrive each day.
And be sure to avoid any filing mistakes, which could result in a significant delay in your return.
This can all be easily achieved by using a service like H&R Block or Tax Slayer right now.
Why you should file your tax return early
There are other benefits to filing early aside from just getting your refund quicker. Here are two other advantages to acting now:
You'll avoid penalties
Don't wait until the last minute as filing late could result in costly penalties.
"If you owe tax and don't file on time, there's also a penalty for not filing on time," the IRS says. "The failure-to-file penalty is usually five percent of the tax owed for each month, or part of a month that your return is late, up to a maximum of 25%."
It gives you more time to prepare
Not every taxpayer is looking at a large refund, and some may actually even owe back funds. If you fall into the latter category, then it's beneficial to be proactive and file now.
By doing so, you'll be better prepared with a plan to pay back what you owe versus waiting until the last minute in April. So, if you already have the documents you need, it can be better to file now and work toward a payment plan immediately. A tax relief service can also help.
The bottom line
With a larger tax refund on the horizon for millions of Americans, it makes sense to use a tax preparation service now and file your refund early. By filing right away, you'll speed up your return and deal with less competition than if you waited until later in the spring. Plus, you'll position yourself to avoid penalties. And those who owe money will give themselves additional time to work out a payment plan, too.
