Even though income taxes are not due until April 15th now is the time to start working on your return. There are so many benefits to getting your taxes filed early that waiting doesn’t really make financial sense. Don’t procrastinate this year, start early and reap the benefits.
What is the number one reason for filing taxes early?
If you are getting a refund you will have your money much quicker if you file now than at the end of the filing season. The IRS started taking returns just a few weeks ago and most people will see their refund in less than three weeks using direct deposit. Waiting later to file could increase the time it takes for your refund as more returns are filed.
Can filing early help with identity theft and fraud?
Yes, stealing someone’s identity and filing a return in their name is a growing problem. If you file early, you eliminate the possibility of your tax return being filed fraudulently as only one return can be filed per social security number.
If you have a more complicated return could there be advantages?
If you have a unique tax situations starting early allows you to determine all of the information you need and have time to find that information. Also, if you are working with a tax advisor or accountant, they will have more time to work on your return.
Should you complete your taxes return early if you know you are going to owe taxes?
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 two 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 when you have to make decisions under pressure.
What impact does filing early have on tax planning issues?
If you over or under paid, you can make adjustments to your tax withholding via the W-4 form. If you wait until April 15 to complete and file your taxes, any tax changes you make likely only have impact for less than 8 months. The sooner you can make the changes the less impact the changes will have on your paycheck.