Is it good to file your taxes early this year? Pros and cons for 2025 filing season

Thanks for the detailed answer! Do you know if free filing services are generally reliable for handling EIC and CTC correctly? I've always used HRBlock because I'm nervous about missing something, but their fees have gotten ridiculous.

Free filing services have improved significantly and most handle EIC and CTC just fine. The IRS Free File program partners with several reputable companies that can process these credits correctly. Just make sure to carefully review your information before submitting. Many free services now offer guided approaches that help identify credits you qualify for by asking questions about your situation. If your tax situation is relatively straightforward with W-2 income and these common credits, a free service should work well for you.

How does it handle things like child tax credits and EIC? My situation has those plus some 1099 income on the side. Would it still work for me?

Sounds interesting but I'm skeptical. Is this just another paid service? I thought the whole point was to avoid spending money on tax prep.

It definitely handles child tax credits and EIC calculations - that's actually where I found I was missing some money in previous years. The system checks your documents against all possible credits to make sure you're getting everything you qualify for. As for the cost question, I understand wanting to save on tax prep. For me, it was worth it because it found enough additional credits to more than cover its cost, but everyone's situation is different. I still filed with a free service but used taxr.ai to make sure I wasn't missing anything important.

How exactly does this work? They just call the IRS for you? Couldn't you just keep calling yourself until you get through?

This sounds like a scam. No way they have some special access to the IRS that regular people don't. They're probably just charging you to do what you could do yourself for free.

They use an automated system that continually redials and navigates the IRS phone tree until they get through to a representative. Then once they have someone on the line, they call you to connect. It saves you from having to sit on hold for hours or repeatedly call back. I understand the skepticism - I felt the same way at first. They don't have special access to the IRS, just technology that handles the frustrating part of getting through their phone system. After spending three days trying to get through myself last year with no success, it was worth it to me, but everyone has to make their own choice.

That's exactly what I'm worried about! How do you know for sure you've got everything? I usually get a W-2 from my main job and a 1098-T for my kid's college, but sometimes random 1099s show up.

I keep a checklist of all expected documents from previous years and mark them off as they arrive. I also wait until at least February 1st even though some forms come earlier - this gives stragglers time to arrive. For unexpected 1099s, I log into any accounts where I might have earned interest or made transactions (banks, investment accounts, payment apps like PayPal or Venmo if you use them for business) and check if they're issuing forms. Most places now let you see if a tax form is being generated before they actually send it.

I second FreeTaxUSA! Used it for the first time last year and it was super straightforward. The interview process walks you through everything, and they have good support articles if you get confused.