Tax identity theft occurs when someone steals your personal information to file a fraudulent tax return and claim a refund. In recent years, concerns about identity theft have increased as data breaches have exposed Social Security numbers and other sensitive information. The sooner you file your returns, the less likely it is that someone can falsely file under your name.
In addition to ensuring that no one files taxes in your name, filing early may allow you to:
- Get your refund sooner: If you’re expecting a refund, filing early usually means you get it sooner. E-filing with direct deposit typically results in refunds within 21 days; paper checks can take much longer.
- Reduce stress and avoid last-minute rushing: Tax season can be stressful, especially if you wait until April. Filing early eliminates the pressure of looming deadlines and gives you peace of mind.
- Have more time to fix errors: Starting early gives you extra time to review your return for accuracy, gather missing documents, and correct mistakes before the deadline. This can help you avoid penalties and ensure that you claim all eligible deductions and credits.
- Protect against identity theft: The risk of someone else filing in your name declines when you file early because your real return is already on file with the IRS.
- Buy time if you owe taxes: Even if you owe money, you will have time to budget and prepare for the payment if you file early. You can file in January but wait until the April 15 deadline to pay.
- Enhance access to tax professionals: Tax preparers get busier the closer the deadline gets. Early filing usually means quicker access to professional help if you need it.
Once you have decided to file your taxes early, you should get your documents organized. Make sure you have the following:
- Personal information: Social Security numbers (for you, your spouse and dependents), dates of birth for all household members, and bank account and routing numbers (for direct deposit).
- Income documents: W-2 forms from employers, 1099 forms (freelance, interest, dividends, retirement distributions), 1099-G (unemployment benefits), 1099-INT / 1099-DIV (interest and dividends), 1099-B (brokerage transactions), 1099-R (retirement income) and any other income statements (such as those for side jobs or rental income)
- Deductions & credits: Mortgage interest statement (Form 1098), property tax receipts, student loan interest statement (Form 1098-E), tuition statement (Form 1098-T), charitable donation receipts, child-care expenses (with provider details) and medical expenses (if itemizing).
- Health coverage: Form 1095-A, B, or C (proof of health insurance)
- Other essentials: Last year’s tax return (for reference), records of estimated tax payments (if any) and business expense records (if self-employed).
If you choose to use a tax preparer, follow
these recommendations from the IRS.
If you suspect a scam or an unfair business practice, contact the Attorney General's Office at
www.OhioProtects.org or 800-282-0515.