Another season of filing your taxes is officially here…
Sorry, I hope I didn’t just give you anxiety!
If your heart raced a little bit then you definitely will want to file your taxes as early as possible to give yourself peace of mind!
But there are a few other reasons why you should file your taxes early. Check them out below!
FASTER TAXES REFUND
If you typically get a refund, then what’s the point in waiting?
You may as well get your money rather than letting the government hold on to it for longer than necessary.
Filing early can also get your refund faster since the IRS is not as busy earlier in the season.
If you are one that relies on your “big” refund to help pay for certain bills, then filing early will also help get that money in your pocket faster.
However, getting a big refund isn’t the best financial planning – head here to find out why!
TIME TO SAVE ON YOUR TAXES
On the flip side, if you owe taxes then filing early gives you an amount and time to save up for your tax bill.
Even if you file your return early your tax bill is not due until the filing deadline, usually April 15th.
So, if you know exactly what your tax amount due is, then you have a goal and a time frame to save up.
Whereas if you wait until the last minute then you have to come up with that money quickly to pay by the deadline.
PREVENT IDENTITY THEFT
Identity theft is something you do not want to mess with.
Fixing a mess like identity theft can take several months to resolve.
To prevent tax identity theft, it’s best to file early. Because an identity thief won’t have much time to file in your name and claim your refund if you file as early as possible.
ACCESS TO TAX PREPARER
Tax season for any preparer is always busy, but you can typically increase your access and time with your tax preparer if you get in early. Filing your taxes early will also give your preparer more time to thoroughly explain your return and any questions you may have. Since they won’t be rushed at a deadline. This will also give your preparer additional time to consider your tax situation carefully rather than bringing your return at the last minute for the preparer to rush out before the deadline.
Other tax deadlines to keep in mind for your preparer’s sake, are March 1st and March 15th. Your preparer may be busy around these dates.
AVOID AMENDED RETURNS
Lastly, filing early gives you and your preparer time to file an accurate return. Again, if you bring your return in last minute to be rushed out by the deadline then you are risking errors occurring. If an inaccurate return is filed then it will need to be amended.
Amended returns can also invite IRS audits in.
Hence, starting early will reduce errors as more time can be spent on your return.
Taxes are never fun to deal with – unless you’re a nerdy tax accountant like me. So, get it off your plate as soon as you can, that way it’s not causing you a headache for longer than necessary!
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