Another income tax season is upon us again!
Here are 5 Reasons why you benefit by filing your tax return early.
Reason 1 – you’ll get your refund quicker. If you are due a refund and file electronically, you’ll get your money much faster. You can then put that money to good use rather that it being dead money earning you nothing.
Reason 2 – If you owe, you’ll find out now rather than at the last minute. This will give you a lot more time to plan for how you are going to pay the tax bill. You can file your return now and pay later by the April 15th deadline.
Reason 3 – File before a fraudster does! As you know, there is a lot of fraud out there. One of the scams is someone filing a fraudulent tax return as if they are you and requesting a refund that gets deposited to their account – not yours.
When you get around to filing your return it is then rejected by the IRS because a return was already filed. You’ll then waste months of your life trying to prove your identity and get your refund.
Reason 4 – If you owe you can also make plans to adjust your withholding now for the current year to pay in a little more each period to reduce the impact of trying to catch up by putting it off until later.
Waiting until April 15th puts you almost 1/3 into the year before you realize an adjustment is needed, which means you’ll have to withhold a lot more each month to catch up.
Reason 5 – Take the stress out of taking it down to the wire. Whether you prepare the return yourself using software or go to a tax service, getting started earlier gives you time to deal with issues you may encounter (such as missing tax documents) so that you are not as stressed by pushing up against the deadline.
So why not get going on your taxes now and take advantage of these reasons for filing early!