Generally, April 15 is the deadline to file your income tax forms with the Internal Revenue Service. Unless you’ve overpaid and are eager for a refund, you may be tempted to put off the paperwork.
Stalling on filing taxes is fairly common. A study by the Chamber of Commerce, a nongovernment online resource for small businesses, found that nearly a third of Americans wait until the last minute to file. The IRS reported that by March 14, 2025, about 70.3 million returns had been submitted, a 1.7% decline from the same period a year ago.
Typically it’s best to submit your tax forms long before you have to, but holding out isn’t always negative. Under some circumstances, there may be benefits to squeaking in under the wire.
Here are the pros and cons of filing your taxes right before the deadline.
Benefits of Waiting to File a Tax Return
Technically there is nothing wrong with filing a tax return on April 15. Here are four scenarios in which holding off can even be advantageous:
1. It Can Prevent Having to Adjust a Completed Return
If you think you may receive a corrected tax form, waiting until April to complete your return can save you time and energy, says Noah Rosenfarb, a certified public accountant and the founder of Freedom Family Office in Parkland, Florida.
“For example, you may get a 1099 from a brokerage institution, but they made an error, so send you the right one later,” he says.
If you’ve already filed the wrong figures, amending your return with the updated information will be another task on your plate.
2. You Can Ensure All Forms Are in and Ready
The IRS expects employers to send wage forms to workers by January 31. That’s easy enough when you get a single W-2 from the company you work for, but if you’re self-employed or an independent contractor, each of your clients will send you 1099 forms showing your earnings and any withholdings.
If you have many clients, you’ll have a stack of 1099s that all arrive on different days. That can lead to confusion and possibly missing forms.
“They may come late or have your wrong address,” Rosenfarb says. Waiting to file so you know you have everything can make sense.
[Read: How to File Taxes When You’re Self-Employed]
3. You Can Plan on Filing an Extension
A tax extension will give you six more months to file your tax return. If you choose this option, you can delay filing until Oct. 15.
As long as you pay the full amount of any tax that may be due, Rosenfarb says there’s no harm in waiting. “It can also help if you will work with a tax preparer in June or July when they’re not so overwhelmed in April,” he says.
4. You Can Prioritize an Important Life Event
If you just can’t file your taxes properly in January through March because something important is happening in your life, relax. Waiting can give you much needed breathing room, says Romeo Razi, a CPA and the founder of Taxed Right, based in Las Vegas.
“Maybe you had to travel, were sick or had to go to a funeral,” he says. “Some pressing events like these take precedence.”
Drawbacks of Waiting to File a Tax Return
On the other hand, submitting your completed tax return early in the year has its advantages. Consider the following six reasons to get your taxes done sooner rather than later:
1. Delays Can Cause Anxiety
If you feel anxious and worried about doing your taxes, you’re not alone. But when you procrastinate, those negative emotions may be prolonged. Because the dread may intensify as the days pass, getting it over with quickly is the preferred approach.
[Read: Tax Time Can Cause Depression and Anxiety — Fight Back With Expert Advice]
2. You Might Have Trouble Finding a Tax Preparer
You can do your own taxes for free, but if they’re complicated and you want to hire a tax preparer or other professional to help, make an appointment as early in the year as possible.
“April is their busiest month,” Rosenfarb says. “You want to make sure you have your spot scheduled or you may not get one.”
In that case, you’ll have to complete your own taxes when you’re uncomfortable or file an extension when you don’t need one.
3. You May Face Excessive Tax Prep Fees
If you find a tax professional who can take you on as a client at the last minute, you’ll probably have to pay more for the service.
“Most will charge you a higher fee for the rush job,” Razi says. Ask about the extra fees so you know what you’re up against. Additional fees to prepare disorganized or incomplete files and expedite returns can add hundreds of dollars.
4. Room for Error Grows
If you wait until the last day or two to file you may discover that you don’t have all the documents, invoices or receipts that you need. Not only will getting them together cause stress, but there’s a greater chance that you will input the wrong information. That goes for your tax preparer, too.
“You’re getting into the busiest part of tax season so when your CPA is stressed, there is a greater likelihood they’ll make a mistake,” Razi says. “This happens more often when they haven’t worked with you before.”
5. Your Tax Liability May Be Higher Than You Anticipated
One of the biggest downsides associated with delaying the filing process is if you find out you have an unexpected tax debt.
“You may not know how much you owe until you file,” Rosenfarb says. “Interest accrues on the unpaid tax amount, too.”
6. Help Avoid Tax Fraud
One of the most important reasons to file sooner than later is to avoid tax fraud.
Scammers can steal your Social Security number, create a fake return and file it early during tax season. If the IRS doesn’t flag the return, it will refund the fraudster who filed it. Then, when you try to file your return, the system will reject it.
[Read: 6 Tax Scams and How to Avoid Them]
Filing Your Taxes On Time is Important
As long as you submit everything by the deadline (or file an extension), the IRS will consider you on time, and you won’t be penalized for filing late.
But what happens if you do miss that date? If you’re owed a refund, there is no penalty for filing after April 15. But if you underpaid, being delinquent will cost you.
The IRS will impose a failure to file penalty of 5% of the owed sum for each month or part of a month that a tax return is late, not to exceed 25% of your unpaid taxes. You will also be assessed a late payment penalty of 0.5% of the amount you owe for each month or part of a month the tax remains unpaid, up to 25% of the original liability.
Meanwhile, interest will also be accruing. For tax year 2024, the rate for individuals is 8% compounded daily, and it will be 7% for the first quarter of 2025.
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Pros and Cons of Waiting Until the Last Minute to File Your Taxes originally appeared on usnews.com
Update 03/27/25: This story was published at an earlier date and has been updated with new information.
