There is one season of the year where working individuals either love it or hate it, and that is tax season. The season where we are repaid, or have to pay more, for all of the work contributions we do all year long at the various day and night shifts, at organizations both big and small. This specific season spans from January to April. While it can be a good feeling to know your big pay day is coming, it is essential to file your tax return as early as possible. Not everyone has the privilege of taking care of tax business early, but if you can, consider yourself lucky. Below are a few advantages of filing your tax return sooner than later.
GET YOUR MONEY FAST
When an individual files their return early, they become one of the lucky ones to get their return fast. Why wait until the end of the tax season to get your return when you can file early and get it within a matter of weeks? Just get your W-2s and tax information from your employer as soon as it is available and consult with local tax preparers. And while you’re at it, make sure to request to receive your refund via direct deposit instead of check by mail; everything is faster when it is done digitally. We are living in a digital world, right?
EXTENDED DUE DATES
Although it is tax season and everyone is looking for their financial break, some individuals still have debts to pay. Uncle Sam remembers those little taxes we need to pay and he will definitely collect them. However, if you are one of the many to file taxes early, you will have until April to pay the tax debt. If you wait until April to finally file taxes, you won’t have much time until your debt is due. Long story short, file early and have more time to get your funds in order to pay off that tax debt!
PROTECT YOUR IDENTITY
Filing taxes early can indeed protect individuals from identity theft. Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. Filing your refund early will eliminate those out there trying to use your information because you have already filed. This is a glaring issue that seems to always hit the fan for individuals every single year. Cybercriminals are real and on the lookout. However, if you file early, you won’t be one of those individuals.
HAVE AN ERROR-FREE SUBMISSION
We all want our refund in our bank account as quickly as possible. That feeling of seeing such a big amount debited to our account just feels amazing. Before that happens though, we need to ensure our tax information is error free. Like most things, errors in tax information is sure to delay your refund process. For example, typing that extra “r” in your name or using St. instead of Ave. in your address are all mistakes that will make the tax refund process slow as a turtle. If you file early with your local tax preparers, those very errors can be caught, fixed, and allow more time for it all to go through.
Whenever money is involved, stress is likely to be a factor as well. During tax season, an individual should file as early as possible to eliminate the stress that comes with the process. If you wait until April to file taxes and you’re scrambling to get yourself together, it could cause for a stressful season. Things like depression, anxiety, and losing confidence in your financial situation could all become possibilities if you play the waiting game. However, if you file early, you can alleviate stress by knowing your tax situation is all taken care of.
As we await the tax season, we can do all the little things to ensure we are able to file early, like obtaining all necessary information and consulting employers to see when tax information will be available. While this process may seem easy, there are individuals out there who find trouble following the idea of filing early. Let’s all do ourselves a favor and take care of business in order to get our refunds early. ‘Tis the season!