Posted by BEST FINANCIAL GROUP LTD

Reasons to File Your Taxes Early

Reasons to File Your Taxes Early

In the fiscal year of 2019, nearly 34 million taxpayers waited the previous week or the week of April 15 to file their tax returns. This is the same amount of income tax returns filed throughout March 1. Unsurprisingly, we are all stressed during the tax season!

But, with more than 70% of taxpayers receiving an income tax refund each year with an average of almost $ 2,800. However, we cannot think of a good reason why they want to delay the filing of taxes.

And this is not the only advantage of early transport! Here are some other reasons why we need to act together at the start of this financial season.

Early filers eliminate tax deadline stress

According to a recent survey, most taxpayers are concerned about filing their tax returns. No surprise! Whenever you face an unpleasant task, it is best to move away as soon as possible. Income tax is no different. You must complete and submit the forms.

Give yourself a false deadline, well before the April deadline, to meet your taxes. Once you have sent the return, you should give yourself a small reward for your efficiency and responsibility just to motivate yourself. Go to the cinema, or organize a dance party in the living room. So everyone is stressed and running to pay their taxes on time, you're relaxing somewhere in your room.

Early applicants have higher average refunds

A tax refund is not free money. Getting a big refund from the IRS means that you borrowed money from Uncle Sam (interest-free) throughout the year, and he is only returning what is already yours!

If you receive a refund of more than several hundred dollars, you will likely need to work with a tax professional and a human resources department to adjust the deductions on Form W-2. 

That said, if the government owes you money this year, make sure you get every dollar you want, and submitting a previous return can help. IRS data shows that taxpayers who file in late February receive significantly higher refunds than those who file later, about $ 400 on average.

Of course, if you know you will receive a refund, you are more likely to apply earlier, which could be one of the reasons that the first applicants get higher refunds. But another reason is that before you start taxing, the more possibilities you have to get all the tax deductions and credits to which you are entitled, which requires more time and documentation than the standard deduction.

Those that file early can protect their refunds against identity theft

So, you just submitted your tax return, and it was immediately rejected. This might be because an income tax return has already been filed with your social security number, and your heart throws you in the stomach when you realize that you are now a victim of tax refund fraud.

Early filing may not eliminate the threat of identity theft, but it can protect return. If the thieves file a return using your Social Security number in front of you, the IRS will cancel your return because your records show that you have already been paid. It may take several months to resolve the problem with the IRS, and you will eventually receive a refund.

Filing Early Gives You Time To Plan

When you are faced with an income tax rather than a refund, it is natural to defer the deposit as much as possible. However, if you continue and complete the tax forms and submit them, you will know exactly how much to pay, and you will not have to pay in full before the April filing deadline.

The more time you have to get the money, the less likely you are to spend your budget or stay out of your emergency fund. Get what you need, create your plan, and sort that tax bill.

Early Filer face less competition for access to their tax specialists

You may have found it challenging to get proper tax planning in critical times. If you haven't scheduled a meeting with a professional in mid-March, you may need to file an extension.

Also, some tax specialists will charge more for filing taxes as the filing deadline approaches. The best way to avoid all these problems is to make an appointment with your consultant as soon as possible.


BEST FINANCIAL GROUP LTD
Contact This Member