The IRS began accepting tax returns for the 2019 tax year on January 27th of this year. Tax season can be a very stressful event if you wait until the last minute to file your taxes.
It is easy to procrastinate filing your taxes, but completing this task early is the financially savvy thing to do. Herein are some of the reasons why you should file your taxes early.
You Will Get Your Refund Back Sooner
The average tax refund issued in 2018 was $2,780. If you do not owe money for the 2019 tax year, you are eligible for a refund.
You have no reason to let the federal government keep your money longer than necessary. Filing your taxes early means a faster refund, since the IRS is not as busy early in the season as it will be in April. The process is even faster, if you file your taxes electronically.
Protection from Identity Theft
While the risk of tax fraud has been reduced considerably, filing your taxes early can protect you from identity theft. Identity thieves use your Social Security Number and other information to file false tax returns, and cash in on your refund checks.
They strike earlier in the season, filing the returns before the victims. Filing your taxes early will prevent this, as the IRS only allows one return per Social Security number per year.
More Time to Retrieve Crucial Information or Documents
Filing tax returns can be tricky. When you put this task off until the last minute, you place yourself at a higher risk of lacking the crucial information or paperwork required in time.
Doing your taxes early helps you avoid such scenarios. It can also provide you with updated information in case you need to make significant investments, such as purchasing a home, or going back to college.
Buy Time to Figure out Your Payment Options
Preparing and filing your tax returns early is a good idea if you owe the IRS money. Knowing what you owe before the deadline offers you time to research your payment options.
You do not have to pay what you owe until the mid-April deadline. You can use this extra time to make your payment arrangements, whether you are paying by credit or debit card.
Your CPA Will Have More Time for You
If you enlist the services of a CPA, or any other professional tax preparer, they will not be as busy earlier in the year as they will be in April. This early access means that your preparer will be more attentive to your tax situation, and more helpful with your return.
There are more benefits to filing your taxes early, including avoiding tax extensions, filing your taxes correctly, and avoiding stress. Most financial experts, and even the IRS, recommend filing your taxes as early as possible.
Edward L. Taylor Jr currently serves as a Clayton County Business Banker with Heritage Bank. With over 15 years of experience in the banking industry, Ed can provide you with the best business products and services to serve your needs now and well into the future.
Vice President Business Banker • 770-515-7032 • [email protected]