The 2019 tax season is set to kick off next week. That means now is not the time to be a procrastinator. Millions of taxpayers hate this time of year. So instead of filing their returns early, they put their taxes in the back of their mind. But waiting to file your taxes is not a solution. You’re only delaying the inevitable. Sooner or later you’ll have to face the music. So why not get after your taxes early this year and avoid the stress later? In fact, there are numerous reasons to get your taxes done early.
You’ll Get Your Refund Faster
The most obvious reason to file your return early is that you’ll get your refund earlier – if you have a refund coming. When you file early, your return will be one of the first ones reviewed by the IRS. And if you file electronically, you’ll likely get your refund within two weeks, sometimes even quicker. Plus, if you need that money to help pay some bills, or to invest for the coming year, you will have it at your disposal much sooner.
More Time to Pay Off Taxes You Might Owe
If you’re one of the unlucky taxpayers that doesn’t get a refund, you’ll also want to file your return early. That’s because if you owe the IRS money, you’ll have longer to pay it off. For example, if you file at the end of January that gives you two and half months to make payments before the April 15 deadline. That gives you more flexibility, which can help you avoid any penalties and interest.
Prevent Identity Theft
Tax time is one of the worst times of the year for taxpayers when it comes to tax scams. Scammers are working extensively to steal your tax refund. Not only are they trying to steal your refund before you can claim it, but also theymight be looking to steal your entire identity. This can lead to huge problems, both now and going forward. By getting your return in early, you can prevent scammers from intercepting your refundand stealing your identity. Because once you have filed they can no longer file your return.
Avoid Filing An Extension
For some taxpayers filing an extension in order to meet the April 15 deadline is inevitable. But for many taxpayers, filing an extension is very avoidable. If you start early, you have a better chance of gathering all the information you need and getting your return in on time. If you wait till the last minute, the chances are greater that you’ll have to file an extension. If you end up owing money, you’re still responsible to pay off what you owe. An extension only covers the time you have to file. That means you might have to pay penalties and interest until you pay off your tax debt in full.
Don’t Procrastinate
There are plenty of good reasons to be an early bird and get the worm. This year, don’t put your tax return off. Instead, get it done early and enjoy that feeling of having it done!
The post Top Reasons to Get Your Taxes Done Early first appeared on Advisors to the Ultra-Affluent – Groco.
