Pros and Cons of Filing Your Taxes Early
As the tax deadline approaches, you may be trying to decide exactly when to file your taxes. When is the best time to submit your returns to the Internal Revenue Service (IRS)? One thing to consider is whether you like getting things done ahead of time or find that you are a procrastinator. Every situation is different so there is not one right answer. It is often important to consider consulting with a tax professional as you think about the best-individualized approach to filing your taxes. Here are some of the general pros and the cons of filing your taxes early this year:
Reasons to Consider Filing Your Taxes Early
You should ALWAYS consider filing early if you are getting a refund from the IRS. After all, you should keep in mind that your refund is actually an overpayment that you have made to the IRS for the past year, so getting this money back as soon as possible makes good financial sense. In addition, the earlier you file, the faster your processing times will be with your refund, meaning your money will be back in your pocket faster. You should also know that filing electronically is always faster than submitting paper copies of your return.
Filing early can also benefit you if you owe money as well. If you file your 1040 Form early, you will have several months (until April 15th) to make plans to pay your tax bill and can think ahead about getting the money together that needs to be sent to the IRS.
Finally, if you are anticipating a major life event (moving, sending a child to college, etc.) then it can also be helpful to have filed early. Your tax return can show proof of your annual income and this information can help you move forward with other important parts of your life.
Why You Should Consider Waiting Until the Tax Deadline to File
There are also several reasons why waiting to file your taxes may make more sense for you this year. For example, if you are waiting on financial information, paperwork or other documentation, you should not file until you have everything that you need. Similarly, if you file early and realize that you have not included all pertinent information on your return, you will have to amend your return, a process that is certainly more complicated and time-consuming than simply waiting until you have the information you need to file. Amended returns often increase the odds that you will be audited, so you want to make sure that you file a correct return, whether that is early or just ahead of the April 15th deadline.
Help With Tax Preparation from Success Tax Relief
April 15th will be here before you know it! No matter when you decide to file your return, the team at Success Tax Relief can provide you with accurate tax advice and support so that you will feel confident when you file. Call our team at 877-825-1179 or contact us online to ask about any of our services today!