Why it’s a good idea to prepare your taxes early
It’s tax time: prepare early to avoid procrastination, reduce identity theft, and get your refund sooner.
Tax season is here, and while you have until April 18 to file your return, you may want to think about doing so sooner rather than later. Here are a few expert tips on why:
BETTER PLANNING
Many of you should have received most of your tax paperwork by January 31st. Preparing your return early gives you more time to address complicated situations and plan ahead if monies are due.
People who wait until the last minute may forget something in their rush. Starting earlier gives you more time to gather your paperwork and seek help if needed.
If you owe money, filing early also gives you more time to save up the cash, as your bill isn’t due until April 18th.
IDENTITY THEFT
Filing early essentially beats criminals to the punch.
Identity theft is a growing problem and one often tied to tax refund fraud. Once your return is filed with the IRS, the information — in particular your social security number — is locked and cannot be used again by anyone else.
We suggest filing early to secure the information and your refund. It’s one of the easiest forms of identity protection.
FASTER RETURNS
If you’re due a tax refund, the sooner you file the sooner you’ll get it.
According to the IRS, last tax season close to three out of four tax filers received a tax refund, and the average refund was about $2,800. That’s a big boost to many households.
While some delays are expected this year for filers claiming the Earned Income Tax Credit or the Additional Child Tax Credit, the IRS still expects to issue more than nine out of 10 refunds in under three weeks from the day a return is received.
The bulk of taxpayers are not procrastinators. About 20 percent file in the last two weeks before the deadline, and another 10 to 12 percent pay later, but the majority file earlier. With knowledgeable support available, there are few excuses to delay.
If you have any questions regarding your tax situation, as always, please contact your Warady & Davis LLP advisor at (847) 267-9600.