What are the Advantages to Filing Income Taxes Early?

by admin

You’ve probably heard the old saying, “the early bird gets the worm.” Well, that statement has never been truer than when it applies to filing your income taxes. While it can be tempting to put off filing until that April deadline is looming, it’s really in your best interest to get a head start. So, no matter how busy your life may be, take a few moments of your time to prepare and file those income taxes or to hire someone to do it for you. It might be a little bit of a hassle you have to deal with now, but it will pay off big time in the long run.

Some individuals are fortunate enough to actually get money back when they file their income taxes. Obviously, if you’re going to be getting a refund, you’re going to want to have it in your wallet or bank account as soon as possible, and the sooner you file, the sooner you can get that refund. For the fastest possible turnaround, file your income taxes online. It’s also better if you can set up your refund to go directly into your checking or savings account. Having the money automatically deposited is a whole lot quicker (and less risky!) than waiting for a check to arrive in the mail.

Income tax forms can be complicated things, and even the most seasoned filer can make a mistake. Whether that mistake is as simple as placing a typo in your address or as serious as accidentally misreporting amounts, it is going to take time to fix it. If you’re sneaking your returns in just under the deadline, time isn’t something that you have a lot of. If, however, you’ve filed early, then you still have ample time to fix your mistake without penalty. Of course, it’s best if you avoid making a mistake in the first place, so always check and recheck your forms before sending them off.

Earlier, we mentioned that some lucky people actually get money back from their income tax returns. Others, unfortunately, will end up having to pay. If you’re like most people, you don’t have a ton of extra cash lying around, and an extra bill, especially one that comes as a surprise, can throw a real wrench in your plans and possibly even cause you to go into debt on other bills. It’s a lot easier to come up with the money you need if you have some time to do so, and filing early is an easy way to give yourself that time.

Finally, if you’re planning on hiring someone to do your taxes for you or just seeking free advice from an accountant, you certainly won’t want to wait until the last minute. If you do, then you’ll be stuck waiting with all of the other procrastinators. Accountants and tax preparers get very overwhelmed as the deadline for filing approaches, and it can be next to impossible to get an appointment with someone knowledgeable and trustworthy when you wait too long.


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