Filing your taxes probably isn’t on your top list of things to do, but it’s still something everyone needs to complete before the deadline.
Whether you’re putting it off or just need help, there are some real advantages if you decide to file taxes early.
Do you know what you need to do to get your taxes filed ASAP?
Read on for a list of seven good reasons you should file your taxes as early as possible
1. You’ll Get Your Refund Faster
If you expect to receive a refund, if you file taxes early, your refund will get to you much more quickly. When you file the return electronically and include your bank account information, your refund will get there even faster.
Keep in mind that it may take several weeks or even longer if you opt to file a paper return. Try to file an e-return if possible to speed up the refund process.
You can file your tax return online using a variety of different services. Do your homework to decide which one will work for your specific needs.
2. File Taxes Early to Delay If You Owe
For some, putting off filing taxes until the last minute comes with the territory if you expect to owe. However, filing early may actually benefit you if you have a balance due to the IRS.
As soon as you submit your return, you can choose to delay your payment as far away as the middle of July. The earlier you file, the sooner you can plan your payment and make arrangements. Another perk to filing early is that you’ll know exactly how much you owe now so you can be prepared later.
3. You’ll Have Time to Shop for Tax Prep Services
If you think your return will be complicated or you just need a bit of help, a professional tax filing service is a good option. If you’re asking how much does it cost to get your taxes done, the answer can vary.
Most tax preparation services will charge an initial flat fee, then increase the amount based on your specific information. For example, if you have children, you could be charged a separate filing fee per child. Do your homework in advance and compare preparation costs among several providers.
4. You Won’t Need to Ask for an Extension
Filing an extension request with the IRS can be a process all on its own. If you file taxes early, you won’t need to worry about this step.
In many cases, you could need to ask for an extension because you don’t have enough time to gather all the required information. This includes items like receipts and W2 forms. Filing early means you won’t need to ask the IRS to extend something that you can accomplish as long as you have everything together ahead of time.
If you can’t pay what you owe all at once when you file, an extension can make things worse. Paying taxes owed past the due date means you’ll accrue interest and penalties on the balance.
5. Filing Early Helps to Prevent Fraud
Sometimes, criminals use the private information of other people to fraudulently obtain their refunds. This typically happens well before the deadline when most people aren’t thinking about filing yet.
If you file taxes early, you can beat the criminals to the punch. The sooner you file, the sooner you’ll be on record as filing and the fewer opportunity criminals will have to steal your information.
If you need to know how early you can file taxes, check the IRS website every year. They’ll announce when citizens can begin to process their returns and submit their information.
6. Early Filing Equals Less Stress
Tax season is not something most people look forward to. However, when you file early, you can sit back and relax knowing you’re done for the year.
This is particularly relevant to those who may owe money to the IRS. The sooner you complete the process and make arrangements, the sooner you can continue with your life.
Most of the stress that comes from filing taxes is the unknown and not being sure what the outcome will be. If you file early, you’ll have all the answers you need well in advance.
7. Most Early Filers Get Bigger Refunds
While this may not apply to you, many early filers tend to get a bigger refund. If you’re one of those people, it only makes sense to file taxes early.
If you have all of your information already in place, there’s really no reason why you shouldn’t file as early as possible. Take your time when you file to make sure you’ve included every possible bit of information.
With a good filing system, you can determine all of the deductions you’re eligible for well in advance. People who are prepared tend to end up with bigger returns since they know exactly what information they will give the IRS.
File Early for Best Results
From preventing potential fraud to quicker refunds, it’s easy to see why you should file taxes early if possible. Planning ahead and looking for a reliable tax preparation service will give you the peace of mind you need.
Keep all receipts and other paperwork throughout the year so you can file as soon as you can. With the right plan, you can file early to get the process done for a better outcome.
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