FORUM Credit Union's website works best with JavaScript enabled

Completing your taxes early has many benefits


Even though income taxes are not due until April 18th waiting until then to file your taxes might not be a smart financial strategy.  Filing your taxes early might be a good option for certain situations, don’t procrastinate during tax season!
 
What is the most beneficial reason for filing your taxes early?
If you are getting a refund you will have your money much quicker.  The IRA started taking returns about a week ago and most people will see their refund in about 21 days if they use direct deposit.  Waiting later to file could increase the time it takes for you to get your refund.
 
What is the expected refund this year?
Last year the IRS stated the average refund was $2,800 and that nearly 75% of all taxpayers received a refund. Refunds are expected to be near this average again in 2017.  You might have some very good news so starting to work early is probably a good idea.
 
How can getting your refund early help in other financial matters?
If you have holiday debt or for that matter any debt, you can use your return to pay off or pay down that debt. This can save you potentially hundreds of dollars in interest you would have paid if you wait to get your refund and delay paying it off..
 
Are there other benefits to filing early?
Another really important reason to file early s that it can help lessen your risk of tax identity theft and fraud. Stealing someone’s identity and filing a return in their name is a growing problem and if you file early, you eliminate the possibility of your tax return being filed fraudulently.
 
If you have a more complicated return, does starting early have any benefits?
Yes, If you have several investments and other unique tax situations starting early allows you to determine all of the information you need and have time to find that information.  And, if you start early and need tax advice or help, you are more likely to find assistance. 
 
Should you complete your taxes early if you know you are going to owe taxes?
Yes. The biggest benefit is that if you file early but delay the payment until April 15th, you will know how much you owe and will have nearly three months to find the money to pay your taxes.  Usually that means you will find better options that don’t have as great as a financial impact.
 
What impact does filing early have on tax planning issues?
The biggest impact is that if you over or under paid, you can make adjustments to your tax withholding and have nearly 11 months for those changes to make an impact.  If you wait until April 15 to complete and file your taxes, any tax changes you make will likely only have impact for less than 8 months.
 


Posted: 2/3/2017 with 0 comments

Categories: Money Matters, Taxes



Comments
Blog post currently doesn't have any comments.
Subscribe
 Security code

Categories

Archive