Get ready to do your taxes (2024)

FAQs

How can you prepare early to file your taxes? ›

The IRS recommends using tax preparation software to e-file for the easiest and most accurate returns and fastest refunds. You may be able to file free online through the IRS Direct File pilot program if you are in one of 12 participating states and have a simple tax return.

If you're confident about your ability to understand the tax code, then doing your own is a smart way to save. If not, it's probably time to pony up the cash and hire an expert. Ultimately, you have to weigh the value of your time and money against your peace of mind.

If you chose direct deposit as your refund method and your return was error-free, the IRS estimates you should have received your refund by Feb. 27, 2024.

When to expect your child tax credit refund. For early filers, the IRS told CNET that most child tax credit and earned income tax credit refunds would be available in bank accounts or on debit cards by Feb. 27 for taxpayers who have filed and chose direct deposit -- and there are no other issues with their return.

If you expect a refund, filing well before the tax deadline will get your refund cash into your pocket faster. For best results, you can e-file and have the refund directly deposited in your bank account. If you owe money to the IRS, you might prefer to prepare your return early and wait until mid-April to file it.

Set up a payment plan

If paying your entire bill upfront isn't an option, the IRS offers several types of alternatives – like monthly payment plans (called installment agreements). And the penalties and interest the IRS charges on your tax balance may not be as high as you think.

The failure-to-file penalty hurts the most. It's generally 5% of the amount you owe for each month or part of a month that your return is late, with a maximum penalty of 25%.

Anytime your taxes are complicated. Hiring a pro is a prudent choice after a major life change like getting married or divorced, having a baby, buying or selling a home or business, experiencing a major health issue, or retiring.

How difficult is doing your own taxes? ›

Although the United States tax code is a complex one, it's not difficult to do your taxes on your own. That is, as long as you use a quality software solution to guide you through the process. Consider signing up for TurboTax, H&R Block or another leading software solution now to get started.

So far in 2024, the average federal income tax refund is $3,011, an increase of just under 5% from 2023. It's not entirely unexpected: To adjust for inflation, the IRS raised both the standard deduction and tax brackets by about 7%.

The child tax credit is a $2,000 benefit available to those with dependent children under 17. For the 2024 filing season, $1,600 of the credit was potentially refundable.

Taxpayers claiming either of these credits can file right away since the 2024 tax season officially opened on January 29. However, the IRS says most people who claim the EITC and ACTC and expect a refund won't receive their money until February 27 at the earliest.

You can file your taxes at any time between when the IRS opens and the annual due date. Some taxpayers may get a jump on taxes and start their tax preparation before the IRS opens, but it's important to note that you can only truly file them when the IRS is open.

There's an increased likelihood of making mistakes when in a hurry. Your tax return isn't something you should rush through just to get your refund, no matter how much you might need the money.

In fact, if you're looking to maximize your refund, avoid scams and get your money sooner, consider filing your tax return as early as possible. This year, over 15 million people have already filed during the first week, for an average refund of $1,395.

Filing your tax return early will—at the very least—mean less stress for you when Tax Day rolls around. Other outcomes, ranging from a speedier refund to a lowered risk of identity theft, could help you financially. As always, if you have questions about your taxes, it's wise to consult a tax professional.