Filing your taxes can be a daunting task, and it’s easy to put it off until the last minute. However, did you know that filing your taxes early can actually have some benefits beyond just getting them out of the way? In this post, we’ll explore the top reasons why you should consider filing your taxes early.
Avoid the Last-Minute Rush
One of the biggest benefits of filing your taxes early is that it can help you avoid the stress and pressure of trying to complete them at the last minute. The deadline to file your taxes is usually April 15th, but this can vary depending on where you live and your personal circumstances. If you wait until the last minute to file, you may find yourself rushed and overwhelmed, trying to gather all of the necessary documents and information and double-checking your calculations.
Filing your taxes early, on the other hand, gives you plenty of time to get everything in order. You can take your time gathering all of the necessary documents, such as your W-2 form, 1099 forms, and any receipts or other documentation for deductions or credits you plan to claim. You can also use tax preparation software or hire a tax professional to help you with the process. By getting a head start on your taxes, you can be more organized and less stressed, which can make the process go more smoothly.
Get Your Refund Faster
Another benefit of filing your taxes early is that it can help you get your refund faster. The Internal Revenue Service (IRS) begins processing tax returns in January, so the earlier you file, the sooner you can expect to receive your refund. If you file your taxes later in the tax season, you may have to wait longer to get your refund, as the IRS has to process a larger volume of returns.
Getting your refund sooner can be especially helpful if you are relying on that money to pay bills or make other financial decisions. For example, you may be planning to use your refund to pay off debt, make a major purchase, or save for a down payment on a home. By filing your taxes early, you can get access to your refund more quickly and make those financial plans a reality.
Protect Against Identity Theft
Filing your taxes early can also help protect against identity theft. Tax-related identity theft occurs when someone uses your personal information to file a fraudulent tax return and claim a refund in your name. This can be a serious issue, as it can take a lot of time and effort to resolve and can cause problems with your credit and your ability to file future tax returns.
By filing your taxes early, you can prevent someone else from using your information to file a fraudulent return. If you wait until the last minute to file, you may not realize that someone has already used your information until it’s too late. By filing early, you can ensure that you are the first to file and that you are the one receiving any refund that may be due to you.
Have More Time to Pay Any Taxes Owed
If you owe taxes, filing your taxes early can give you more time to come up with a plan to pay what you owe. This can be especially helpful if you are self-employed or have a complex tax situation, as you may need more time to gather the necessary documentation and prepare your return.
If you owe taxes and are unable to pay them in full by the April 15th deadline, you can request an extension or set up a payment plan with the IRS. However, it’s important to note that an extension is not a waiver of the taxes you owe. You will still have to pay any taxes owed by the deadline, and interest and penalties may apply if you are unable to pay on time. By filing your taxes early, you can have more time to explore your options and come up with a plan to pay what you owe.
If you are struggling to pay your taxes, it’s important to reach out to the IRS as soon as possible. The IRS has a variety of options available to help taxpayers who are unable to pay their taxes in full, including payment plans, installment agreements, and offers in compromise. By contacting the IRS early, you may be able to avoid additional penalties and fees and work out a plan that is manageable for you.
In conclusion, filing your taxes early has several benefits beyond just getting them out of the way. It can help you avoid the last-minute rush, get your refund faster, protect against identity theft, and have more time to pay any taxes owed. While it may be tempting to put off your taxes until the last minute, there are actually some significant benefits to filing early. So consider getting a jump start on your taxes this year and reaping the rewards.