Many taxpayers delay filing their income tax returns until late March or early April, but they may not realize there are several benefits to completing their taxes early. Read our list of six reasons why you should complete your taxes sooner rather than later!
1)Receive refund quicker
Of course, the faster you file your taxes, the faster you receive your refund. Tax return preparers are busier the further into tax season, so turnaround time for tax return preparation is quicker in the earlier months. The IRS gives out refunds with a two or three day turnaround early in the tax season. As tax season progresses and more people file, it can take up to three weeks to receive your refund.
2) Time to pay owed taxes
If you owe a balance to the IRS, filing early allows you the time to find out exactly how much is due. Submitting your return early gives you leeway and time to arrange a payment to complete your taxes until the mid-April filing deadline.
3)Avoid identity theft
Recently, we found that two clients’ Social Security numbers were stolen. In one case, someone “filed” in January on one client’s behalf and took their refund. In another case, a client was having issues filing because the SSN of her six-year-old daughter was stolen. Now, she is having a difficult time claiming her daughter as a dependent.
These are massive messes to untangle with the IRS. We are able to help with this, but it is best to file early and decrease the likelihood that either of these situations could happen to you.
4) Obtaining financial information
If you are selling a house, sending a child to college or applying for a loan, your tax returns will be needed soon. File early and help facilitate this process. With completed tax returns, you will have a head start on your paperwork.
5) Avoid a tax extension
If you owe money, interest and penalties will be due on the amount you owe – even if an extension is filed. Remember, an extension covers you for filing your 1040 past the initial April 15 deadline, but it does not extend the allotment of time you get to pay your taxes.
6) More one-on-one time
As referred to previously, both uncertified tax return preparers and CPAs (Certified Public Accountants) have a hectic six week period from March 1 through April 15. Preparing taxes in February will lead to more individual time either in person, on the phone or via email with your preparer. He or she has more time for your questions and any individual tax issues you may need solved.
Reach out to us today with any questions or comments you may have about filing your income taxes at (781) 436-5810 or http://hylencpa.com/contact-us/!