Procrastination is a thief of time, and when it comes to filing taxes, we all tend to wait until the last minute. To avoid the last-minute rush, you should file your taxes early. It is important to file your taxes before the week of tax day and save yourself the stress that comes with it.
There are many reasons you can delay filing business taxes on time. If you are not able to pay your taxes, you can file bankruptcy due to COVID-19 and find some relief. Here are some of the reasons you should file your taxes before the last day.
1. Eliminate the tax deadline stress
Most taxpayers are normally stressed over filing their taxes. When the tax season comes around, most people are stressed because it is time-consuming. Therefore, if filing your taxes is unpleasant to you, and then get it out of the way as soon as you can.
You will have to fill all the necessary papers and submit them to the relevant authorities for income taxes. To escape the stress that comes with this, you can start filing your taxes early.
2. Protect your refund from identity thieves
Tax refund fraud is a common problem that most people filing their taxes late go through. It happens when someone uses your Social Security number to file their taxes and get a refund on your behalf. In 2016, fraudsters tried stealing at least $12.2 billion through identity theft. The IRS only managed to recover a portion of that money.
When you file your taxes early, you don’t eliminate the risk of identity theft but you do protect your refund. The IRS will kick out your return when identity thieves use your social security number before you do. It takes a lot of time – around a month – to clear the mess of identity theft so that you get your tax refund.
3. Have time to make a plan when you have a tax bill
Filling your income taxes early gives you enough time to plan yourself when you have a tax bill to clear. If you are facing a tax bill instead of a refund, you can put off filing taxes for a long time. However, when you file your taxes early enough, you can know how much the IRS requires you to pay.
You don’t have to pay this amount until Tax Day, which gives you the time to prepare yourself. When you have enough time to plan for Tax Day, you will not likely drain your emergency fund and bust your budget.
4. Improve your chances of a larger refund
If you want to get every coin that the government owes you in terms of tax refund, then file your taxes early enough. According to the IRS statistics, most people who file their taxes as early as February improve their chances of getting larger refunds than those filing late.
In most cases, when you are expecting a tax refund from the government, you are more likely to file your taxes early. This is the reason most early filers get significant refunds on time from the IRS.
Final Thoughts
It is important to file your taxes early before Tax Day is finally here. Filing your taxes early helps you prevent the risk of identity theft, avoid the stress of late filing, and most importantly, increase the possibility of getting a significant refund from the tax authorities. Lastly, to avoid the competition for access to a tax pro during the last day, you have to file your taxes early.
