Benefits of Filing Your Taxes Early
The New Year is here, and that means tax season is here as well. Of course, you may not be thinking too much about your taxes just yet—after all, it’s only the beginning of January. But as your tax forms begin to come in, it’s important that you not put off filing your tax return. While you may be tempted to put off filing your taxes, there are many important reasons to do it as soon as you have all of your documents ready. Keep reading to learn what they are.
Get Every Deduction
As your mother and your teachers have always told you, rushing through a task will almost always lead to mistakes. The same is true of your taxes—only these mistakes can actually cost you money. When you wait until the last minute to file, you’ll probably find yourself rushing through the forms instead of taking the time to seriously consider your financial situation and ensure that you get every deduction you qualify for.
While working with a CPA does make such mistakes less common, they’re still a possibility. Your CPA only has so much time (especially at this time of year), and while we’ll certainly ensure your tax returns are accurate, last-minute filings tend to get smaller refunds, because there simply isn’t enough time to hunt for hidden deductions.
Plan for What You Owe
Of course, not everyone gets a refund. But filing early can still help you get those deductions for a smaller tax bill. And then, you’ll have time to plan for what you owe in taxes. Unfortunately, it’s the people who are anticipating a large tax bill that tend to put off filing. They simply don’t want to see that large number in black and white. But procrastinating your taxes doesn’t make your tax debt any smaller.
It is far better to file early so that you know exactly what you owe and can make a plan for how to pay that debt. What many people don’t know is that you don’t have to pay your taxes when you file. You can file your return early, then take the time to get funds together to pay before April 15th. Or, you can set up an IRS payment plan if you can’t pay it all at once. This is a far better option than being surprised by an even larger-than-expected tax bill and scrambling to get the money together at the last minute.
Don’t Be a Tax Scam Victim
Tax season is like hunting season for scammers. One common scam is to steal a taxpayer’s identifying information and file a false return in their name—and they always do this early on, so they can collect the refund before you can file your real return. Filing early may not protect you from having your information stolen, but it does prevent them from filing that false return and taking your refund.
It’s also important to note that the scammers who pull these schemes are usually looking for a quick payday. So, if they steal your information, try to file a return, and are blocked because you already filed, it’s unlike that they’ll take any further action with the information they stole. However, if you file late in the tax season, they can file a return first and leave you with a huge mess while they get a hefty government payment.
Relieve a Little Stress
When has procrastination ever made you less stressed? Whether it’s a project at work or a term paper, you’ve probably noticed that putting it off doesn’t make the work any easier. While taxes can certainly be stressful for many people, they’re a lot less stressful if you can take the time to go over your finances, assemble your paperwork, and fill out the necessary tax forms. Frantically digging through receipts and paystubs a few days before the deadline is just causing unnecessary stress. It’s best to just avoid that situation altogether if you can and file early.
Get More Time with Your Accountant
This time of year is incredibly busy for those of us in the tax business. And the closer we get to the tax deadline, the busier we get. If you have all of your necessary tax documents early on in the tax season, it’s best to sit down with your accountant right away and work on getting your taxes filed sooner. As we approach April 15th, more and more people will be demanding those appointments, and you may find yourself having a hard time scheduling a meeting at a time that’s convenient for you.
If you’re ready to start working on your taxes, give us a call right away and get them filed early!
Camputaro and Associates
Certified Public Accounting Firm
136 N. Orchard Street, Suite 8
Ormond Beach, FL 32174