Remember being a child and wishing that time didn’t go so slowly? As adults, we all wish that time would slow down! Before you know it, it’s a new year, and then shortly after that, it’s April 15, and taxes are due.
While it may be tempting to file for an extension and kick the can down the road until mid-October, the sooner you file, the better. Check out the five benefits of filing taxes early.
Five Benefits of Filing your Taxes Early.
1. Get Your Tax Refund Sooner
One of the best benefits of filing your taxes early is that you get your tax refund faster! Filing your return electronically and having your refund direct deposited into your bank account is the quickest way to get your money.
While the date changes each year slightly, the IRS usually begins accepting e-filed returns early to mid-February.
2. Extra Time To Pay Taxes You Owe
If you owe taxes to the IRS, you may think it’s wise to wait until you have to pay them. However, filing your tax return as soon as possible gives you more time to save for the money you owe.
Submitting your return in mid-January means you have until the tax filing deadline to pay the taxes you owe. By filing early, you know exactly how much you owe so that you can save accordingly.
3. More Time to Gather Financial Information
Big life changes can have a big impact on your tax return. Early preparation is helpful if you’re going to college, buying a home, or getting married. This way, you can gather all of the information you need.
For example, college students need to show Form 1040 to apply for financial aid. Homebuyers have to show a completed tax return as proof of income.
The sooner you file, the more of a head start you have on getting all the paperwork you need.
4. Avoid a Tax Extension
Many people are forced to file a tax extension because they’re unorganized and cannot find the information they need to file. Others do it because they don’t have the money to pay the taxes they owe.
Preparing your tax return early helps you to avoid:
- Needing to pay a tax professional to complete your return
- Being charged interest and penalties on outstanding tax debt
The sooner you’re prepared, the less likely you are to avoid these scenarios.
5. Avoid Deadline Stress
Tax season is stressful. And if you’re like most people, when you face an unpleasant task, you avoid it until the last minute. However, when it comes to taxes, it’s best to get it out of the way as soon as possible. By filing your taxes early, you can avoid the impending deadline doom.
Though it can be tempting to delay filing your tax return, the sooner you file, the better. There are many benefits to filing your taxes early, including getting your refund sooner and not dealing with the repercussions of a tax extension. To learn how our accounting services can help you, contact Satty, Levine & Ciacco, CPAs, P.C. to get started.