Taxpayers anticipating larger refunds in 2026 face a significant risk: filing prematurely. According to CPA Lawron Ballard, the top error he encounters is clients rushing to submit returns before all necessary documents arrive. This includes overlooked items like 1099-INT forms from savings accounts or brokerage statements. Ballard warns that filing incomplete returns can trigger IRS delays, potentially pushing refunds back months and leaving individuals reliant on costly credit cards or loans. In the worst case, rushed filings may even result in unexpected tax liabilities, transforming expected refunds into unexpected bills.

The stakes are heightened this year by IRS processing backlogs, making timely refunds even more critical. The average 2025 refund was $3,052, projected to rise 15-20% in 2026. However, those who file early risk not only delays but also the loss of this anticipated boost. Ballard emphasizes that waiting for all documents ensures accuracy and avoids the financial strain of delayed access to funds.

To prevent this costly error, Ballard advises comparing this year's documents to last year's and waiting for any missing items. Checking investment account portals for available tax forms can also help. The financial impact of filing too early extends beyond delays; it can force reliance on high-interest credit, exacerbating financial stress during what should be a relief period.