Hey guys, Bette Hochberger, CPA, CGMA here, and for today’s quickie, I want to discuss the benefits of filing your taxes early. As tax season approaches, many people find themselves scrambling to gather documents and complete their tax returns at the last minute. However, filing your taxes early can provide numerous benefits that can make the process smoother and less stressful. So, let’s go ahead and explore the key advantages of filing your taxes early and why you should consider getting started sooner rather than later.
Reduced Stress and Anxiety
One of the most significant benefits of filing your taxes early is the reduction in stress and anxiety. As the deadline approaches, many individuals feel overwhelmed by the pressure of completing their returns. By filing early, you give yourself ample time to gather your documents, double-check your information, and address any issues that may arise. This relaxed approach allows you to approach your taxes with a clearer mind and less pressure.
Faster Refunds
If you’re expecting a tax refund, filing early can help you receive your money sooner. The IRS processes returns on a first-come, first-served basis, so those who file early are often among the first to receive their refunds. This can be especially beneficial if you have plans for that money, such as paying off debts, saving for a vacation, or making a big purchase.
More Time for Planning
Filing early gives you more time to plan your finances. By knowing your tax situation earlier in the year, you can make informed decisions about your spending, saving, and investment strategies. If you owe money, filing early allows you to budget accordingly and avoid a last-minute scramble to come up with the funds.
Avoiding the Rush
As the tax deadline approaches, many taxpayers rush to file their returns, leading to increased wait times for assistance, potential errors, and technical glitches. By filing early, you can avoid the chaos that comes with the final days before the deadline. This means you can take your time, do thorough research, and ensure that your return is accurate.
Opportunity to Identify Errors
When you file your taxes early, you have more time to review your information and identify any errors or discrepancies. This is particularly important because mistakes can delay your refund or lead to issues with the IRS. Early filing provides you with the opportunity to correct any errors before submitting your return, ensuring a smoother process.
Increased Focus on Deductions and Credits
Filing early allows you to take your time and carefully consider all available deductions and credits. This can lead to potential tax savings that you might overlook if you’re rushing to meet the deadline. By starting early, you can research and strategize to maximize your tax benefits, ultimately reducing your tax bill.
Easier Access to Tax Professionals
If you plan to work with a tax professional, filing early can also make it easier to get an appointment. Many tax professionals experience high demand as the deadline approaches, making it difficult to find time for a consultation. By starting early, you can secure a spot with a tax expert who can guide you through the process and help you make informed decisions.
Filing your taxes early offers numerous benefits, from reducing stress to maximizing your potential refund. By taking the time to prepare your return ahead of the deadline, you can enjoy a smoother, more organized tax season. So, don’t wait until the last minute—start gathering your documents and consider filing early this year, and feel free to schedule a meeting with us if you need assistance.
I’ll see you next time!
