Taxes aren’t due until April, but there are good reasons not to wait to file your tax return. Millions of Americans must file a tax return every year, but by taking care of the task before the time, you won’t have to stress out over it in April too.
The IRS does recommend that people file as early as possible to get their refund quicker. However, it’s not the only reason to file early! This means more time for double-checking your work, planning payments, and avoiding tax fraud. What’s more, if you owe taxes, you can always file now (and pay later).
You should file your taxes early because filing early wards off tax identity theft. Check these things in this article to learn more about when you can file and what documentation will be needed for you to avoid the risks of tax identity theft.
Benefits of Filing Taxes Early
There are several reasons to complete tax returns early rather than waiting until Tax Day:
• More accurate returns potentially resulting in larger refunds.• Less competition for appointments with tax preparers.• More time to plan for tax payments.• Less chance of tax fraud.
The opportunity to get an earlier refund often prompts people to file during the early stages of the tax year. Rob Burnette, CEO and financial advisor with Outlook Financial Center says, “You used to be able to get a federal refund in 10 days”. Now, the IRS estimates that most people will receive refunds within 21 days after filing. The deadlines depend on how long it takes for your return to be processed by the IRS though, so be sure to stay aware of this if you’re expecting a refund.
Filing early can give you a larger refund. That’s because people who file at the last minute might miss out on deductions or credits. “You don’t know if you have itemized deductions until you add them up.” says Patrick Collabella, Associate Professor of Accounting and Taxation at St. John’s University in Queens, New York City.
If you start your taxes early, you’ll have a better understanding of what’s going on and more time to get answers from the government. For example, if they don’t provide answers to your questions, you can inquire about it later. Starting early also means that even if a return is filed late there is still time to make up for it by paying off what’s owed.