Why does TurboTax allow early filing? Because their competitors do - It is a marketing ploy.
Filing early with TurboTax before the IRS opens is a really BAD IDEA.
1) If you discover something that is wrong on your return, receive a W-2 that is different, receive some other tax document that was not on the return that you filed then there is NOTHING that you can do about it other than wait to see if the IRS accepts or rejects the return after they open. If rejected you can correct and file again, but if accepted then the only remedy is to amend which can take 4 months to process.
2) You must remember to check back after the IRS opens (or check for an e-mail) to confirm that the IRS has accepted or rejected the return. If rejected, then it was never filed at all and must be corrected and re-filed. Every year many taxpayers that file early, forget to check back and only discover months later that they never actually filed because if was rejected by the IRS but they had forgotten about checking back after filing with TurboTax.
3) While the IRS does conduct some per-opening polling tests and does accept some returns early, they will not process those until after the official opening. There is a reason to test and that is to discover any problems with it's systems. A couple of years ago a test went bad and several thousand "test" returns were lost. The IRS was able to recover those but it delayed refunds for some by months.
There is no real advantage to file before the IRS opens but there are several disadvantages to do so.
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The IRS is running behind due to COVID and a huge amount of early tax returns being filed this year.
21 days is not a magic number - it is just an average.
TurboTax only gives the general IRS (most returns are processed within 21 days) date. The actual date is known only by the IRS. TurboTax also does not adjust the general date for anything on the tax return. TurboTax receives no feedback from the IRS after filing.
The IRS says most refunds will be issued within 21 days - some faster, some longer.
Each tax return is evaluated on it's own merits. There is no first-in-first-out. Two similar tax return submitted at the same time can have totally different processing times based on IRS criteria for examining tax returns that the IRS does not divulge.
Some returns will be held for ID verification or other verification. The IRS will send a letter if they require more information to process your tax return.
https://www.irs.gov/individuals/refund-timing
Check your refund stratus here:
https://www.irs.gov/refunds
Check your state refund here:
https://ttlc.intuit.com/questions/1899433-how-do-i-track-my-state-refund
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
