It may still be February, meaning you have a couple months left to get your tax return in, but why wait? There are a number of reasons why it would be beneficial for you to file your taxes early and get the process over with.
Here are just a few of the biggest benefits to early filing.
Get your refund faster
If you’re expecting money back from the government, getting it sooner is always better than getting it later. The IRS will begin accepting e-filed returns on February 12 this year, so if you file before then you’ll be able to get your return via direct deposit very quickly after. If you’re filing via paper or expect to receive a paper check the process can take longer, so getting an early start will be beneficial in speeding up the process of getting the money you’re owed.
Give yourself more time to pay off your tax bill
If you know you’re going to owe money to the IRS, it’s still important to get your return in early so you can figure out exactly how much you will owe and make the necessary plans to get your payments in on time. You don’t have to make the payments until the tax filing deadline in April, so having that information early can help you make arrangements.
Get your missing stimulus money
This year, there is a Recovery Rebate Credit that allows you to get any money you have not yet received for your stimulus payments issued by the government last spring and over the winter. If you either did not receive full payments or did not receive the money at all, you can claim this money on your taxes and get the full value of the money owed added to your tax return. Filing early will ensure you get that stimulus money you need as soon as possible.
Avoid needing an extension
By prioritizing early filing, you can avoid the need for an extension and get the process over with early on. Extensions most often occur as a result of disorganization, rather than financial need. Avoid any chances of extensions or potential late filing penalties by being proactive with filing your return.
Prevent identity theft
The longer you wait to file your taxes, the more you open yourself up to potential identity theft by another person attempting to file a tax return in your name so they can get your refund. Gettingyour taxes in early makes it much less likely you will fall victim to this scam.
For more tips about filing your taxes and getting it done early, we encourage you to contact us at MCG Solutions.