5 Benefits of Filing Your Tax Return Early
If you tend to wait until the last minute to file your tax return despite having all the necessary documents well ahead of time, you may want to rethink your approach. Filing your taxes early has several benefits that you’re missing out on. So, ditch that habit of procrastination and get your taxes in early this year if you want to reap the benefits outlined below. And if you need a hand getting your taxes in ahead of schedule, reach out to us to work with an experienced CPA who can get your taxes filed quickly and professionally.
Protect Yourself from Tax Scams
Scammers and identity thieves love to strike during tax season. They’ll steal a taxpayer’s identity and file a false return in their name so that they can quickly claim their tax refund. While filing your taxes early doesn’t necessarily protect you from identity theft, it does protect your refund from the thieves. Tax scammers tend to file their false returns early during the tax season, before most taxpayers have filed; this makes it easier for them to claim the refund.
But if you’ve already filed your return and claimed the refund yourself, they’ll find themselves coming up empty-handed. And since most of these scammers are looking for a large, quick payday with these false tax returns, it’s unlikely that any other action will be taken with your stolen identity. If you file late in the season and a thief has stolen your identity to file a false return, you’ll find yourself with a huge mess on your hands instead of a nice refund.
Plan for Tax Bills
If you’re not receiving a refund, but instead owe taxes to the IRS, filing early gives you more time to plan for how to pay off that tax debt. Many people who are anticipating a large tax bill procrastinate their tax filing for as long as possible; however, this doesn’t help your situation at all. It is much better to file your return early and get the exact numbers for how much you owe, so that you can make a plan regarding how to pay those taxes.
Additionally, filing early doesn’t mean you have to pay early; you’ll still have until April 15th to pay your taxes or set up an IRS payment plan. But by getting that paperwork done early on in the season, you’ll get a firm number on what you owe and will be more prepared to adjust your finances accordingly so that you can pay off the debt, rather than scrambling to scrape together funds at the last minute.
Don’t Miss Out on Deductions
Filing at the last minute typically means rushing through your tax forms and filing as quickly as possible, rather than taking extra time to ensure you’re getting every possible deduction. When you start working on your taxes early on in the season, you have a bit more time to double and triple check those deductions and ensure you’re getting as much back on your taxes as you possibly can. This may be one reason why people who file by the end of February average $400 more on their tax refunds than those who file late.
Avoid Last-Minute Stress
Procrastinating anything—be it taxes, term papers, or work projects—always leads to unnecessary stress. Wouldn’t you rather be able to take your time assembling all of your documents and filling out the necessary forms, as opposed to frantically digging through your receipts for the numbers you need the day before the deadline? Last-minute stress can give you more than a few gray hairs, and it’s simply better to avoid that as much as you possibly can.
Have More Access to Your CPA
The closer it gets to the tax deadline, the busier your CPA is going to be. People who didn’t have their tax documents ready sooner, those who need a last-minute change to their tax return, and other tax procrastinators will begin placing more and more demand on your accountant as the tax deadline draws closer. The earlier you file your return, the easier it will be for you to schedule meetings and phone calls with your CPA to get the assistance that you need. Wouldn’t you rather be able to speak to your CPA right away, rather than having to fight to get on their schedule?
If you have all of the necessary tax forms to file your tax return, there’s no reason to put it off any longer. Get your documents to one of our professional tax preparers and will get your tax return filed early so that you can reap all the benefits mentioned above. Give us a call to get started on your return today.