4 Reasons to File Your Taxes Early

There’s nothing wrong with filing your taxes ahead of schedule. In fact, getting a jump on federal tax filing may be more advantageous than most people realize.

Also Read: Income Tax return Filing

It doesn’t matter how early you file your tax return as long as you satisfy the IRS’s original or extended deadlines. Tax Day is April 18, 2022, for the tax year 2021. Even if it isn’t necessary, filing your taxes early is almost always advantageous. Here are some of the most compelling explanations.

 

  • Your tax refund will arrive sooner.

It’s a good idea to file early if you want your tax return in your bank account as soon as possible. If you get a head start on filing your tax return, you’ll be among the first to collect your refund. When the IRS begins processing returns, choosing to e-file and collect your refund via direct deposit is the quickest way to get your money.

You might as well obtain the money from the government as soon as possible, right? The sooner you get your money, the more time you have to put it to good use! For example, you may use your additional tax refund to pay off a credit card bill, avoiding the need to pay interest on your outstanding debt.

 

  • You’ll have more time to organize yourself.

Let’s face it, when it comes to filing our taxes, most of us aren’t as organised as we’d like to be. The benefit of using online tax software is that you may begin submitting your federal and state taxes as soon as you receive the necessary tax forms, such as your W-2 or 1099s.

Let’s imagine you put off filing your federal income tax return until the last possible moment. You notice you’re missing some important forms when filing, and you’re running out of time to locate the paperwork you require.

Similarly, the longer you wait to file, the more difficult it will be to recall which expenses are tax deductible and which tax credits you may be eligible for during the year. It can be tough to remember what happened over a year ago if you didn’t keep sufficient records. It’s preferable to file early while the prior year’s events are still fresh in your mind – especially if you need to itemize deductions.

Giving yourself that extra time to file helps you avoid the need to file a tax extension and gives you a better chance at filing a more complete tax return

 

  • You will have more time to pay your taxes.

If you owe the IRS money, filing your return early will offer you extra time to pay your tax bill. You have until the tax deadline (April 18, 2022) to make your payment. If you’re on a tight budget and foresee a tax bill, filing early provides you more time to budget for that payment and avoids late penalties and interest on any outstanding tax debt.

It’s also worth mentioning that the IRS provides a range of repayment options for American households who can’t afford to pay their entire tax bill in cash. Filers can request a payment plan from the IRS if necessary, but late costs will almost certainly apply. To give time to budget for a probable bill, file as soon as possible.

 

  • You’ll be less likely to commit tax fraud.

Tax fraud is unfortunately a widespread kind of identity theft. If someone gets their hands on your Social Security number, they’ll have all the information they need to file a federal tax return in your name and steal your refund.

Tax fraud is less likely if you file your taxes early. The sooner you file your tax return with the IRS, the less time a criminal has to file a false return in your name.
Suggested Read: Income Tax Planning

Comments are closed