5 Benefits of Filing Your Taxes Early Straight From a Tax Consultant
33% of Americans admit that they wait until the last minute to file their taxes. So if this is typically your strategy, you’re not alone! However, just because it’s common, does not mean that it’s the best strategy. Any tax consultant will tell you that filing as early as you can is the best way to handle taxes. In this article, we’ll explain the benefits of filing your taxes early so you know exactly why sooner is better than later.
1. Get your tax refund sooner
You probably don’t need a tax consultant to know that a great reason to file your taxes early is to get your refund sooner.
There are a lot of reasons why filing early means that you’ll get your refund early. Obviously, the earlier you file, the earlier your taxes will be processed and if you’re owed a refund, you’ll get it sooner. However, filing early may also get your refund to you sooner by avoiding potential processing delays that may be caused by filing at the last minute (as many other people do).
If you’re interested in getting your refund as soon as possible, keep these three things in mind:
- File as early as you can.
- File electronically – having to manually go through physical paperwork is a common cause of refund delays.
- Receive your refund via direct deposit.
2. Give yourself more time to pay back what you owe
If you do end up owing taxes, you have until the filing deadline to pay these taxes back. Filing as early as you can allows you to be sure just how much money you owe, come up with a plan to pay it, and pay it back without having to use emergency funds or savings. So even if you know you’re going to have a tax bill instead of a refund, that’s no excuse for waiting to file!
3. Protect your refund
We all do everything we can to protect our private information, including social security numbers, but in this day and age, this information can get into the wrong hands even when you take precautions. If an identity thief gets access to your social security number, they can file a tax return in your name and take your refund.
It’s very common for identity thieves to do this, but filing early can prevent it. The earlier you file, the less time a thief has to file a tax return in your name, ensuring that you’ll get the refund you’re entitled to. You will be able to work with the IRS to clear up any issue if a thief does file a return for you, but it can take months.
Reduce your risk of tax refund fraud by filing early!
4. Get important financial information sooner
You may need financial information provided by preparing a tax return. This is the case for college students applying for financial aid as well as for homebuyers who need to show a completed tax return to prove their household income. In these situations, the sooner you can get this information, the better, which makes filing early particularly important.
5. Reduce your tax time stress
Even when you’re not down to the wire to file your tax return, tax season is understandably stressful for most of us!
The best way to lessen this stress? Just get your taxes done and out of the way as soon as you can. Procrastinating will just make you think and worry about it more, leading to increased stress.
Stress can also cause mistakes. Not everyone performs at their best when they’re under pressure. It can make you forget important documents that could potentially lead to issues with your tax return. The rush of filing close to the deadline may also mean that you could miss out on tax deductions or credits that you’re eligible for, just because you didn’t give yourself time to calmly sort out your tax documents.
Finally, filing early will reduce your stress by ensuring that you’ll have plenty of time to schedule an appointment with a tax consultant. The closer we get to Tax Day, the more people will be scheduling appointments, meaning that it may be harder for you to get one. Avoid all of this by filing early and having the peace of mind that finishing a big task provides!
File early and let the experts at Phoenix Tax Consultants do the hard work for you!
Taxes can be complicated and stressful, but they don’t have to be.
When you let an expert tax consultant from the Phoenix Tax Consultants team handle your taxes, you can be sure that your tax preparation will be completed quickly and accurately. We also pride ourselves on our customer service, which is why we do our best to provide prompt replies to your questions, value-added planning, tax-saving recommendations, and more.
We don’t just process – we plan. At Tax Tacklers, we are disrupting the way people do their taxes. The best part is that with our virtual and in-person filing options, you can do your taxes from anywhere!
With more than 30 years of local tax preparation, tax planning, and audit experience, why would you trust anyone else with your tax preparation? Schedule an appointment today!