The Early Bird Gets the Worm: 5 Reasons Why You Should File Taxes Early
April 15th is looming.
For thousands of Americans, the roaring approach of the otherwise benign mid-April day triggers an onslaught of anxiety. It's tax day, the day federal income taxes are due, and a day of ultimate stress for many.
But there's no reason to put yourself through all that waiting. File early, get taxes behind you and enjoy your year (and your refund!). Let's look at a few good reasons to file taxes early this year.
Tax refund fraud isn't something most people lose sleep over, but according to the IRS, it's the biggest fraud they deal with.
If someone has your social security number, they can file a return in your name, and claim your refund.
This typically happens early in tax seasons, in late January or early February. If you file early, you can beat fraudsters to your refund.
A Bigger Refund
Ok, so there isn't a rebate or credit for filing earlier. BUT everyone knows they are more careful when they aren't pressed for time.
Filing early means you aren't rushing to meet a deadline. This means you can take the time to ensure you are taking every deduction for which you are eligible, snagging you the biggest possible refund.
Extra Time to Pay
Worst case scenario with taxes? You owe. For many small business owners, this is a reality and one they would like to push off as long as possible.
But really, wouldn't you want to give yourself time to save and budget for that tax bill? The earlier you file, the longer you have before that bill comes due and you have to pay.
More Time With a Professional
Getting your taxes done by a professional this year? It's a good call. CPAs and Tax lawyers know how to get you the biggest possible refund.
But during tax season, getting in to see a professional may be nearly impossible. As April approaches, tax offices are going to be booked solid, and you'll be left on your own.
However, the closer you file to the January 28th start date, the more likely that you will have your pick of tax professionals and appointments.
Get Your Refund Sooner
And the biggie. Who doesn't want that chunk of change as soon as possible?
The sooner you file, the sooner your return can be processed and approved by the IRS. It can take 4-6 weeks to fully process a tax return and get you your refund. But you run a higher chance of a shorter time frame if you file early.
This is especially helpful if you are planning a big purchase, like a home or vehicle, and need your tax refund to finance part of the purchase.
File Taxes Early and Reap the Benefits
There's simply no benefit to waiting until the last minute to file your taxes. If you file taxes early, the sooner your refund comes, and the easier the whole season is for everyone.
Need a little help getting your taxes in order? Let us help you out! Set up a free consultation today!