4 reasons you want to file your taxes as early as possible — starting Friday,

You may have more than two months until your 2020 federal tax returns are due, but we have four solid reasons why you should act sooner rather than later. For a start, your taxes carry a few additional burdens this year in addition to your tax refund, if you get one — namely, helping you claim a missing stimulus payment. 

The benefits of filing early apply to millions of people who didn’t get all the money they were entitled to as part of the first or second stimulus payment. Maybe the check didn’t arrive because of a clerical error or some other issue. Some folks had problems with custody and child support, missing money for child dependents in general or accidental garnishment.

Our advice also applies to 8 million or more nonfilers, who will have to file a tax return this year to get their stimulus payment. And submitting taxes as soon as possible may also have an impact for tens of millions of people who’ll be eligible for a third stimulus payment of up to $1,400 per person — that stimulus check may arrive sooner than you think. We’ll explain what you need to know. In addition, here’s more information about stimulus checks and your 2020 taxes and when it’s time to contact the IRS or set up a payment trace. This story was updated with new information.

4 benefits of filing taxes early, other than your tax refund

Benefit 1: The earlier you file your taxes, the sooner you’ll get your tax refund (you can estimate the total here). That’s one great reason to file early every year — other than the stress of having your taxes hanging over your head. 

Benefit 2: Since any missing stimulus check money is also tied to your tax return this time around, filing early will mean you get any missing stimulus money faster, too. If you’re owed a tax refund and stimulus money, both will arrive as part of the same payment. For example, let’s say your tax refund was $500 and your stimulus check allotment was $500. You’d receive one $1,000 payment from the US Treasury. 

(If you’re on the hook for taxes but you’re owed stimulus check money, the amount you have to fork over will be reduced. So, if you were to owe $1,000 in taxes and you’re missing $500 in stimulus check money, you’d owe $500 instead of $1,000.)

Benefit 3: The chance to set up direct deposit with the IRS, or fix any errors. People with direct deposit accounts on file with the IRS have typically received their stimulus payments faster than those getting money in the mail. We suspect the same will be true with the third stimulus check of up to $1,400 per person (read about why the new check might be “targeted.”)

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Stimulus check No. 3: What you need to know

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Benefit 4: You’ll stand a better chance of getting your full payment with the new stimulus check in 2021. According to the latest proposal (PDF) — which is not law — the IRS would base your third stimulus payment on your 2019 or 2020 taxes, whichever they have most recently on record. Any money you don’t get as part of the…