The new year is a time to set new goals, rejoice on past successes and make a plan for your future—but it’s also a time to start thinking about your taxes. Most people know that you need to have your taxes filed by the April deadline, but for many, waiting until mid April to roll around isn’t always the best course of action.
If you’re able to, there are many reasons to file your taxes early.
If you are late even by one day, you could be facing some serious penalties. In fact, a late tax filing could result in 5 percent of your original amount due for every month you are late. Many people assume they can file for an extension to avoid the tax deadline, but an extension must be submitted and approved before the April deadline as well, so if an extension is your game plan, you still need to pay attention to that important mid year date.
Get it Done for a Better Price
Tax professionals are often in high demand the closer it gets to April and often need to raise prices to keep up with it. It’s been shown that about 30 days before the deadline, prices tend to go up, especially prices from tax software programs and websites. If you wait too long, you may need to have your return expedited, which can also be a costly expense.
Get Your Refund Fast
If you file your return early, you have a greater chance of getting your refund right away. Before the demand hits and a ton of returns are being entered into their system, the IRS is able to get taxpayers their refunds in as little as 21 days. If you wait until April nears, you could be looking at much longer wait times. To ensure you get your refund even faster, consider filing online and setting up a direct deposit instead of waiting for a check to come in the mail.
Avoid Identity Theft
The unfortunate truth is that tax identity theft is a major problem here in the U.S. In fact, in 2017, the IRS reported over 200,000 cases of identity theft. This type of theft occurs when a person files a refund using someone else’s information. When this happens, it can be a long and trying process for the taxpayer to get out of. But, if you already filed your return, and a criminal attempts to use your information, they will be blocked by the IRS before even getting the chance.
Get it Off Your Mind
Taxes are never a fun part of life, and most of us just want to file our tax refund and move on. If you wait until April, you could be spending half the year stressing over your return and whether or not you will owe a large sum. Instead of dealing with the stress, get it done early and move on with the rest of your year tax stress free
If you need a professional to help you with your taxes, contact Levy Tax & Associates at 1-800-TAX-LEVY or visit our website to learn more.