The tax deadline is still nearly two months away, but waiting for April 15th to file your tax return typically isn’t the best idea. In fact, filing early on in the tax season can offer taxpayers numerous important benefits. Here are just 5 reasons you may want to consider filing your return early this year.
Faster Processing of Refunds
With each day that passes during tax season, more and more returns are sent to the IRS to be processed. So, with every day you delay filing your return, there are more returns that are being placed ahead of yours. The later you file, the longer you’ll have to wait to have your return processed. And, if you’re expecting a refund, this can put a major delay on getting those funds from the IRS.
If you file early in the tax season (typically, before the end of February is best), then you’ll get your refund much more quickly, since there is a lot less demand on the IRS’s time now than there will be come April.
Plan for Paying Tax Debt
On the other hand, if you’re expecting to owe, it may be tempting to just avoid preparing your return for as long as possible. But filing it early gives you the exact amount that you’re going to have to be, so you can make plans and move around funds if necessary to pay your tax liability before the deadline.
No matter how early you file your return, your UT tax payment still isn’t due until the 15th of April; so, by filing early, you can give yourself time to prepare for that payment. If you wait until just before the deadline to figure out what you owe, you might find yourself scrambling to put the funds together in time.
Avoid Costly Errors
When you rush through a task, you’re much more likely to make mistakes; and when it comes to your return, those mistakes and quite literally cost you. If you wait until the deadline is bearing down upon you, you may end up hastily putting your documents and data together, and could miss out on important deductions.
Even when you work with a tax CPA in Provo, we can only prepare your taxes with the information provided. So, if you forget to include charitable contributions or other important information, you could end up paying a lot more in your taxes than you should. And, in some cases, you could end up getting audited and fined by the IRS if you leave out vital information.
Feel Less Stressed
Waiting until the last minute to do something is always a sure-fire way to make yourself feel stressed. You know that your taxes need to be done, and though it may be a bit of an unpleasant task, there’s no avoiding it—you know what they say about death and taxes! So, it’s simply best for your stress levels to get it out of the way as soon as you possibly can. Then, you can sit back and relax through March and April as everyone else scrambles to do what you’ve already taken care of.
Don’t Fight for an Appointment
The closer we get to the tax deadline, the fuller our appointment calendars will become. If you want to ensure that you get an appointment with your CPA—and at a time that is convenient for your schedule, then you need to start getting your tax documents ready as soon as possible. This will allow us to sit down with you and go over your information in detail to ensure that nothing is overlooked. The longer you wait, the harder it will be to get a convenient appointment time with your tax preparer.
So, if you’re ready to get your taxes done and file early, make an appointment with a tax CPA in Provo, and start getting your documents and data together as soon as you can. Doing so will help you to reap all of the benefits mentioned above, and will save you time and stress, and perhaps some money as well.