There’s nothing quite like that sigh of relief after submitting your tax forms, especially months ahead of time. While some continue to wait until the last minute to do their taxes, you can better manage your stress level by filing your taxes early! This is only one reason. As a matter of fact, we’ve found seven.
- Faster Tax Returns– One of the biggest pros to filing early. Having that extra boost of cash can make a big difference when paying bills, buying groceries, or saving up for the future.
- More Time to Pay Back– On the flip side, submitting your tax forms early will give you a better idea of exactly how much you might owe the government. You’ll also have more time to save up, instead of taking a financial blow all at once.
- More Time to Proofread – If you’re not meeting with a tax prep agent, use that extra time to double check your forms for errors. Maybe there’s a deduction you missed, or a misspelled street name? Catching these little inaccuracies early on will prevent amendments, which could eventually lead to audits.
- Prevent Identity Theft – Tax season is a surprisingly favorable time of the year for identity thieves. Not to pay your dues, but to steal your returns. Using your social security number, they can apply for a fraudulent tax return, pocketing money that’s rightfully yours. So, in addition to filing early, be sure to keep your social security number on lockdown.
- Beat the Rush– The mad scramble of tax season can be boiled down into two words: prep and launch. Tax professionals will be in high demand, so try to schedule a meeting with them as early as possible. Post offices also grow more swamped as the deadline approaches but filing early can help you avoid the long lines and keep your forms from getting lost in the chaos.
- Avoid a Tax Extension– Often, waiting until the last minute can leave you disorganized and panicked. This leads people to file an extension to meet with a professional, get their documents in order, or both. The risk you run by filing an extension is, if you don’t pay the taxes you owe on time, the IRS will charge you interest and even penalties on the amount until you’ve paid it off.
Filing your taxes early has way more pros than cons. Still worried you’ll fall behind? Set aside time on your calendar, gather your documents, and treat yourself to a small reward. The deadline to file is April 15, 2019 so hop to it! You’ll be glad you did.
Sources: