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Here are 8 reasons to hurry and file your income taxes early:
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| JC Leahy, MA Accounting |
- Psychological benefit - Getting your income tax filing out of the way early will probably give you peace of mind.
- Get your refund faster -- By filing your return early, you will probably get your refund not only sooner, but also faster. This is because IRS processing centers are less busy during the tax season and can therefore process your return faster.
- Get your financial ducks in a row and avoid high interest debt - If you get your tax refund early, you can pay off high interest credit cards or simply use the early money to keep your personal financial house in order.
- Avoid crowds at the Post Office - If you're mailing your tax return, do you really want to deal with the crowd at the Post Office during the rush that comes later in the tax season?
- Discover filing problems early enough to deal with them If you put your income tax filing together early, you may discover that you are missing information or have complications that need to be figured out before you file. It's better to discover problems like this early so you can fix them before the tax filing deadline.
- Reduce the odds of identity theft -- If you file your taxes early, there's less opportunity for identity thieves to file a fraudulent return on your behalf and collect your refund.
- Get the upper hand in martial disputes. The spouse who files early and claims a child as dependent has the upper hand when the other spouse later wants to claim the same child as dependent. Also, in cases where one spouse would rather file itemized and the other spouse filing separately would rather claim the standard deduction, the spouse who files first will probably get his/her way.
- Help with student financial aid. You may need your tax data for yours or your child's college financial aid. It's better to have this information early.
You’re right for the most part. It’s often possible to file as early as January and doing so will allow you to get refunds faster. I agree that the crowds at the Post Office can be a pain, too, so doing it as early as possible will minimize the torture of lining up for hours. In some cases, though, filing early will not allow you to maximize interest so the early bird doesn’t always get the worm. In the end, it depends on your situation.
ReplyDeleteNeil Dando