Benefits of Filing Your Taxes Early
With tax season rapidly approaching, it can be tempting to procrastinate when filing your taxes. However, there are many advantages to filing as early in the season as possible — namely that you have more time to prepare an accurate and efficient return while avoiding late payments or rushed decisions.
The sooner you start preparing for your taxes, the better off you’ll be in the long run — and now is a great time to get organized! This blog post will share the benefits of filing taxes early so you can make the most out of tax season.
Eliminating Stress That Comes With Tax Deadlines
Did you know that 22% of Americans are stressed when filing taxes? Because of this, most of them file taxes at the last minute and end up making unnecessary mistakes.
Filing taxes does not have to be a stressful experience. By taking proactive steps, such as gathering the necessary documents and adding reminders to your calendar, you can avoid the stress associated with tax deadlines.
If you're feeling overwhelmed or confused, feel free to reach out for help from a tax professional or finance expert. By breaking the process down into smaller steps and taking advantage of online resources, eliminating the stress that comes with tax filing can be easy and swift.
Tax professionals have adequate knowledge and experience to help you make the most of your filing to save time and money.
Filing Early Avoids Processing Delays
If you wait until the last minute to file your taxes, you may experience delays with processing. The Internal Revenue Service had a backlog of 21.3 million unprocessed paper taxes last May 2022, representing an alarming jump of 1.3 million compared to the same period the previous year!
This can cause additional stress regarding receiving refunds and resubmitting any changes that must be made after filing. Not only can this delay cause anxiety, but it can also result in unexpected costs due to higher late fees or penalties for missing deadlines.
It’s essential to be aware of such potential obstacles and plan to ensure that all paperwork is taken care of promptly to avoid any extra hassle or expense related to late filing. Setting reminders for yourself throughout the year can make all the difference when it comes time to submit your tax return, so make sure you are prepared ahead of time and take advantage of the many benefits filing early provides.
Preventing Tax Return Identity Theft
Protecting yourself from tax return identity theft is essential in this modern age. You should file taxes as quickly as possible to guard your data. Doing so will give you peace of mind and ensure that all the necessary steps to protect yourself have been taken.
Furthermore, ensure to audit your tax documents for accuracy before you submit them. Taking the time to double-check ahead of time can help secure that all your hard work in earning money stays right where it belongs — with you.
Some signs that you may be a victim of tax return identity theft include:
Unfamiliar deposits or withdrawals in bank accounts.
Unexpected refunds and notices from the IRS about filing multiple returns.
A duplicate Social Security number.
An employer you did not work for listed in your tax return.
If you happen to encounter any of these irregularities, you should immediately contact the IRS and take action to protect yourself from further damages. The IRS will be able to provide you with the necessary steps to take to mitigate the effects of identity theft.
Extra Time to Plan for Owed Taxes
When you file your taxes early, you give yourself some extra time to plan your finances and come up with the money you may owe.
For example, if you expect to owe a large sum on April 15, filing earlier in the season will give you more time to save up instead of scrambling at the last minute. This can also help relieve some of the added stress of filing taxes.
If you're hoping to receive a refund, it's even more critical that you file your taxes early! Doing so will ensure the money is in your hands quicker, allowing more time to strategize how best to utilize those funds.
Plus, filing early can give you a better sense of control when it comes to financial planning. You’ll have the chance to review and adjust your budget in anticipation of certain expenses or refunds, giving you the power to make decisions that will lead to greater success long-term.
Less Competition Accessing a Tax Professional
Finding a reliable, experienced tax professional can be challenging for those who put off their search until the last minute. The delay in making a decision could lead to fewer options and more competition for the same service.
To get the best possible experience with a tax advisor, you should start your search earlier than later. This way, you can compare rates and services, discuss technical concerns, and ask questions before agreeing on which tax advisor will work best for your needs.
You can also take advantage of filing early to get a discount on tax prep fees if you work with an accountant or tax professional. Most accountants offer early-bird discounts before the April 15th deadline, and taking advantage of this deal can save you money!
When you wait until it's too late, you may end up with a subpar tax advisor or, worse yet, no advisor! Scrambling to file will make it more challenging to ensure that your taxes are filed correctly and on time.
Conclusion
With the stress of taxes looming, filing taxes early is the best way to ensure that all deadlines are met, and your financial security remains intact. It's also important to take extra steps to protect yourself from identity theft and fraudulent activity. Furthermore, filing early allows you to get the most out of your tax return and take advantage of any discounts for filing services.
By following these tips, you'll be able to enjoy the tax process with ease — instead of dread!
If you're looking for help filing your taxes or more clarity on the process, Core Group is here to assist you. Our professional team provides many services designed with your tax filing needs in mind. Contact us today to see how we can help!