5 Benefits of Filing Taxes Early

Tax season has a way of sneaking up, and it’s easy to put it off until the deadline gets closer. But getting an early start can make the entire process easier and less stressful. 

Filing early can give you more control and fewer surprises this tax season. Here are a few reasons why starting your tax prep sooner rather than later can pay off:  

1. Less Stress: Filing your taxes involves pulling together a lot of paperwork and crunching the numbers. If you give yourself more time, you don’t need to scramble to find all of the information you need. Plus, it can be easier to schedule time with a tax professional.

2. Avoid Penalties: If you wait until the last minute, there is a chance you’ll miss the filing deadline. If you don’t get an extension, you might owe the IRS late fees and interest.

3. A Potentially Faster Refund: The sooner you file, the sooner you will receive your potential refund. Knowing how much you can expect to get back from the IRS and getting it sooner gives you a chance to plan ahead for how to use that cash.

4. Extra Time to Pay: If you end up owing the IRS, it is a good idea to give yourself plenty of time to make a plan for repayment. You have until the filing deadline to pay. If you cannot pay in full, you have more time to arrange a payment plan.

5. Prevent Identity Theft: Scammers can use stolen Social Security numbers to file fraudulent tax returns, claiming refunds that aren’t theirs. They often pull this scam earlier in the tax season in order to get ahead of legitimate filers. Filing early gives identity thieves less of a chance.

Reach out if you have any questions about tax season and your long-term financial planning.