Getting Your Taxes Done Early vs. Later
Tax season can be a tough time of year, as it is a time filled with stress and frustration over the difficulty of filing taxes. But as trying as it is, it’s much more beneficial for you to file your taxes earlier rather than later.
Taxes are already stressful, and when you wait until the last possible minute to file your taxes, even just one missing document can cause a catastrophe. That is why it is better to get your taxes done earlier rather than later. If you struggle with putting things off until right before the deadline, then consider setting your own deadline for taxes, such as April 1st. This way, if you are missing an important piece of information, you won’t have to search madly for it on April 15th.
You’ll Get More of A Refund
It’s important to remember that when you get a refund from the government, this is simply you getting your own money back. It is not free money. This is why you should strive to maximize your return as much as possible—so you can get your money returned to you. On average, people who file at the last minute receive less of a refund than those who file earlier. And this is because, if you are rushing, it is more likely you will overlook a deduction and miss out on money, maybe even hundreds of dollars.
Filing Early Protects Your Identity
You can only file one tax return per social security number for the year. And if you are among the later filers, it’s possible identity thieves could have already filed one for you to steal your tax return. You may think this sounds unlikely, but each year billions of dollars are stolen by tax refund fraudsters. So, take a step to protect your identity and file early before the thieves can file under your social security number.
If You Owe, You Have Time
Are you putting off filing taxes because you are afraid you’re going to owe money? This is a very bad practice because if you do indeed owe money, you will be under immense pressure to come up with a large amount of cash last minute. Instead, work to at least fill out your forms early. Then if you do find you owe a large sum, start working to save that money, and you can just submit the money and the paperwork when the deadline arrives.
If you use a tax professional to help you with your taxes, filing early is always in your best interest. This is because tax professionals tend to get busier the closer it gets to tax day. So, by filing early, you will be able to have more frequent and easier access to your tax professional, letting you work around your schedule rather than having to work around theirs.
Overall, it can be difficult to motivate yourself to file your taxes early, but the benefits far outweigh the downsides so there is no reason to delay. Set yourself a goal before tax day and resolve to file your taxes early this year!