Taxpayers receiving a refund tend to file taxes right away
If you are an early season tax filer (i.e. you file your tax return in January and/or early February) you are simply looking to get the “Biggest & Fastest Refund Allowed by the IRS Guaranteed!” You feel like the sooner you file your tax return the faster you are going to get your tax money, the faster you can get caught up on your bills, the faster your life after the Christmas holidays will return to normal.
Taxpayers owing tax to the IRS tend to wait closer to the end of the filing season to file.
Several people put off filing their taxes until the end of tax season. Whether they are taking more time to organize, trying to find the documents they need, or just simply procrastinating, waiting until the last minute is not exactly what we’d recommend. E-file officially opens around the end of January and filing sooner rather than later will help free you from unwanted tax-time stress.
We’ve compiled a list of reasons why you should file your taxes sooner rather than later this year!
Avoid tax fraud
- Filing your tax return as early as possible helps to avoid giving identity thieves the opportunity to file before you do. The IRS will reject tax returns filed under the same social security number and they will not be able to use your identity. If a thief has stolen your information, the transaction can be easier to identify if you file early, and catching the thief will be easier as well.
Get a faster refund
- If you’re looking to get a refund, filing taxes early can mean money in your hands sooner. This can allow you to bump up savings, plan that dream vacation or pay back student loans. You won’t be stressing later in the season about the status of your refund like many late-season filers do.
Know what you owe
- Filing early will inform you of your tax liability and how high your tax bill will be ahead of time. Knowing exactly how much you owe in both state and federal taxes will give you more time to save money or reorganize your finances before your balance is due.
- Tax time can be stressful, especially for those who are new to filing. With proper planning, you can take the stress out of tax time. To make for a smooth and simple tax experience, have your tax documents organized and ready.
Starting early gives you more time to be thorough, check for mistakes, and get help from support if needed. If you wait until the last minute, you may be scrambling for a lost document or overlook an important deduction.