Believe it or not, tax season has already begun. Amid the flurry of tax forms flooding inboxes and mailboxes, you might wonder about filing taxes early this year. If you’re expecting an IRS refund, it’s tempting to run out and try to get your return in now. Less enticing is rushing to submit tax documents if you owe money.
However, early birds in a few states might catch some unappetizing worms this year when it comes to tax returns. The Internal Revenue Service (IRS) finally issued guidance late last week saying most taxpayers who received state payments related to general welfare and disaster relief won’t have to report that income for tax purposes.
The exceptions to this rule are taxpayers from Georgia, Massachusetts, South Carolina, Virginia and Alaska who will have to consult the IRS and state officials for more nuanced rules about the taxability of relief payments.
Given this unexpected road bump, we spoke to several tax experts about the best time to pay taxes this year. Should you file earlier if you’re expecting a big return or can you skate along until right before the filing deadline to make an IRS payment? Here’s what they had to say about whether early filers are smart to beat the crowds and any potential risks in filing early.
When Does Tax Season Begin?
If it seems like everyone becomes a procrastinator during tax season, you’re not wrong. Technically, the 2023 tax season kicked off Jan. 23, when the IRS website
