If you don’t want to miss receiving your income tax refund, you definitely want to avoid delay in filing your taxes. There are over 70% taxpayers today who receives an average of $2,900 tax refund each year according to the IRS. That’s a lot of money and it’s yours, so make sure you receive all of it as early as possible.
Having extra cash in your pocket however isn’t the only reason why you should pay your taxes early. Here are a few of them that should encourage you to be among the first taxpayers to file this tax season:
1. You Can Get Average Larger Refunds
Did you know that taxpayers who file by late February get a good amount of refunds than those who filed late? According to the IRS data, a taxpayer can get $200 on average. It’s normal for people to file sooner if they know they’re getting a refund and that could also be why early filers are able to take advantage of larger refunds.
However, another reason is that you get more chances of making sure that you’re getting all the deductions you qualify for if you start filing your taxes early. Note that claiming all possible deductions could become more time consuming and requires more documentation compared to claiming the standard deduction.
2. You Can Save More Money
You may not be able to avoid the threat of identity theft by filing early, but it can protect your refund. The IRS will disregard your return if it is filed by thieves using your Social Security number before you do because your records will show that you’ve already been paid. This will cause to, you, not being able to receive your refund, until you clean up the mess with the IRS which could take several months.
3. Avoid Stress
Like everything else in life, it’s best to take care of things that you completely hate doing as soon as possible. Taxes may be an unpleasant task for almost all of us, but the sooner we fill out the forms and file them, the sooner our agony and stress will end. Challenge yourself by putting up a deadline (ahead of the April deadline of course) to work on your taxes. After your return is filed, buy yourself something nice or give yourself anything as a reward for being efficient and responsible. By the time tax season arrives, you can just relax while people around you are freaking out for them not to miss the deadline.
4. You Have Enough Time for Tax Bill Planning
Filling out your tax forms and filing them early is highly recommended when you’re facing an income tax bill instead of a refund. This way, you’ll be able to determine exactly how much you owe and you won’t have to pay all of it until the April filing deadline. You need time to raise the money - filing early can help you avoid busting your budget or draining your emergency fund. Find out how much you need to pay, plan on how you’re going to pay and eliminate that tax bill once and for all.
5. Less Difficult to Find A Tax Professional
Can you imagine millions of people all crammed up to file their taxes before tax deadline? By the middle of March of the 2018 tax season, nearly 78 million people had already filed their income taxes while 77 million people only have one month left to file theirs. It’s hard enough to find the right tax preparer, it’s even harder to find one during crunch time. There’s going to be a lot of people who are going to get the earliest schedule for them not to miss the deadline. It’s highly possible that you end filing an extension if you haven’t sent an appointment with a pro by the middle of March.
Additionally, most tax professionals will charge more money to work on your taxes as the deadline is getting closer. The only way for you to avoid this hassle is to set an appointment with your advisor as early as possible. You will also avoid making mistakes and paying tax penalties if you file before tax season arrives.
