Most of us aren’t chomping at the bit to do our taxes. Between locating buried tax documents and facing the unknown of what you may (or may not) owe to the IRS, tax season can be stressful. Because of that stress, filing taxes early may not even be on your mind. But early tax filing can be freeing – not just mentally, financially too.
So, together, let’s put a new perspective on tax season. Let’s explore how filing your taxes early – or even starting to prepare for taxes early – might just be the ticket to a stress-free tax season.
Reasons to file your taxes early
Get ahead of the rush
When you prepare for taxes ahead of time, you have plenty of time to wrap your head around what may have changed for this tax season. Whether it’s changes to tax law by the IRS or changes in your life and financial situation, starting early gives you the edge of simply having more time.
Aside from life and tax law changes, filing early can mean the difference between accurate filing and filing mistakes. It’s best to avoid the interest (or other penalties) that can emerge from a possible audit.
If you’re filing taxes with the help of a tax pro, they will likely be less busy in the early weeks of tax season. That means they’ll be more mentally fresh and ready to take on their first tax customers of the season (you!).
Avoid an amended return
Like we said before, filing early can be crucial for accurate tax filing – and getting an accurate refund. The real goal here is to avoid an audit by the IRS, which can happen when your taxes are mishandled.
An amended return is a form that you, the tax payer, needs to fill out in the event of any errors in your first filing. It ensures that your taxes are done accurately and, yes, ensures that your refund is accurate too. The big downside is that an amended return can take 16+ weeks to be processed.
If you’re anything like most folks, you probably don’t want to prolong tax season. Filling out an amended return will do just that.
Get your top pick of tax pros
A lot of people choose to file their taxes with the help of a tax pro. Those tax pros do taxes all season long, and the deeper you get into tax season, the more likely it is that the really good ones will be all booked up.
Some tax pros, like ours at World, train all year long – staying up to date on IRS changes and brushing up on their knowledge of the process to give you the best tax filing service that they can. When you get in with them early, you can be sure that their feet are on the starting line and their minds are fresh and ready for tax season.
Steer clear of identity theft
Yes, it happens. There are people out there who will file taxes in someone else’s name – using their Social Security Number and taking their tax refunds, too.
If you suspect that your Social Security Number has been compromised, the IRS recommends continuing to file as usual. You may not know that you’ve fallen victim to tax identify theft until the IRS contacts you with a notice. Some of the things they cite as signs you may be an identity theft victim are:
- You get a letter from the IRS inquiring about a suspicious tax return that you did not file.
- You can’t e-file your tax return because of a duplicate Social Security number.
- You get a tax transcript in the mail that you did not request.
- IRS records indicate you received wages or other income from an employer you didn’t work for.
- You’ve been assigned an Employer Identification Number but you did not request an EIN.
Check out the IRS website to learn more about it, and remember – if you file early, the thieves are less likely to have the chance to file with your name and information.
Get your tax refund faster
Want to know the really great part of filing early? Aside from the peace of mind and sense of accomplishment you’ll get, of course. It’s your tax refund. The earlier you file, the earlier you’ll receive your tax refund.
And guess what? You can get it even earlier than that when you file with World Finance. We offer a Tax Advance Loan to our tax customers. It’s completely interest-free (that’s 0% interest), and you can get it the same exact day you file.
So, why put off ’til tomorrow what you can do as soon as you have your W-2? File your taxes early. We see no downsides at all.