Tax time is stressful, even if you’re going to receive a refund. The anxiety that accompanies filing yearly income taxes leads many to wait until the last minute to even begin gathering the records they need. There are actually a number of benefits to conquering the fear and filing your taxes early.
Filing as soon as possible means you’re going to receive any refund faster. That’s especially true if you file electronically. There’s a significant difference in the time it takes to process a paper return than one that’s e-filed. Filing early also increases the accuracy of your return.
Extra Time to Pay
If you do owe money to the IRS, finding out early gives you extra time to pay them. You can submit your tax return early, but you don’t have to have the money to the IRS until the filing deadline in mid-April.
Information for Planning
If you have kids that will be attending college and they rely on your income to apply for financial aid, filing early gives you that crucial data. Tax return information is also utilized for other purposes such as financial pre-approval for purchasing a home.
Avoid Extensions and Interest
You may very well need the services of a tax professional to file your taxes if you wait until the deadline is near. The closer it is to the filing deadline, the more difficult it will be to schedule an appointment with a tax preparer.
You may also need to file an extension if you wait. Doing so will give you additional time to plan on how to pay the IRS what you owe. However, if the amount isn’t paid in full, the IRS can charge you interest and penalties until the balance is fully paid off.
Scammers file billions in fraudulent tax returns every year, robbing people of the refunds to which they’re entitled. Filing early helps prevent someone from submitting a tax return in your name and getting your refund.
At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs. We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!