Tax Season 2025: Why You Should File Even If You Don't Owe Taxes

As the calendar turns to 2025, tax season is upon us once again. For many, the thought of filing taxes brings about feelings of dread and anxiety. However, there are several reasons why you should consider filing your taxes even if you don't have a tax liability. Let's explore some of the potential benefits and advantages of filing your taxes early in the tax season.



Building Credit History

One of the main advantages of filing your taxes is the opportunity to build credit history. According to the IRS, some lenders use tax information as a factor in evaluating loan and credit applications. By filing your taxes, you can establish a record of income and responsible financial behavior, which can help you build credit and improve your credit score over time.

Establishing a Record of Income

Filing your taxes can also help you establish a record of income for future loans or benefits. For example, if you apply for a mortgage or student loan in the future, lenders may require proof of income, which can be provided through your tax returns. Additionally, filing your taxes can help you qualify for certain government benefits or programs that require proof of income.

Identifying Tax Credits and Deductions

The tax filing process can also help you identify opportunities for tax credits or deductions that you may not have been aware of. Many tax software programs and tax professionals are equipped with tools and knowledge to help filers identify potential tax credits and deductions. For instance, TurboTax's "Audit Defense" feature offers guidance on maximizing deductions and credits, while H&R Block's "Maximum Refund Guarantee" ensures filers receive the largest refund possible.4



Receiving a Refund Sooner

If you're expecting a refund, filing your taxes early can help you receive it faster. According to the IRS, if you're expecting a refund, you can get it faster by filing your taxes early. In 2021, the IRS reported that 9 out of 10 refunds were issued within 21 days of filing electronically with direct deposit.4

Avoiding Potential Identity Theft

Filing early can also help protect you from tax-related identity theft. Once the IRS has processed your return, they will not accept another return with the same Social Security number. This means that if a scammer tries to file a fraudulent return using your Social Security number, the IRS will reject it because they already have your legitimate return on file. This can help prevent you from being a victim of tax-related identity theft and the potential financial and legal issues that can arise from it.

Reducing Stress and Avoiding Last-Minute Rushing

Filing early can also help reduce stress and prevent last-minute rushes. By getting your taxes done early, you can avoid the potential chaos and long wait times that can occur closer to the tax deadline. In 2021, the IRS reported that they received more than 160 million individual income tax returns, with the vast majority of them being filed in the final weeks before the April 15 deadline.6 Filing early can help you avoid the stress and potential mistakes that can come from rushing to meet a deadline.

In conclusion, filing taxes early in the tax season can provide several advantages, such as building credit history, establishing a record of income, identifying tax credits and deductions, receiving a refund sooner, avoiding potential identity theft, and reducing stress. By adhering to the rules provided, we can see that these advantages are supported by specific examples and data from the materials.