Filing taxes can be difficult and, at times, very frustrating. However, it is necessary and can even give you some return if you earned one. Everyone wants to get the most out of their tax filing experience. Whether you’re filing as an individual or a business, filing your taxes early is a fantastic way to do this.
What exactly does filing early mean?
The tax season begins when the IRS (Internal Revenue Service) starts accepting taxes and ends when the IRS stops accepting taxes. Typically those dates fall between late January and April 15th. Filing early would mean getting your tax papers in to the IRS anytime between February and early March.
What is the benefit of filing early?
There are a few advantages to filing early. First, you will receive any notice of a tax return or necessary owed payment earlier. If you expect a refund, this means it will get to you sooner.
You can address problems on time. If you find yourself missing documents or important information, you will be thankful for the extra time to track things down.
Another great upside to filing your taxes early is mental relief. Getting tasks done before their deadlines eliminates the stress of last-minute planning or rushing to get it completed. Though this is intangible, we find most of our clients prefer to know their taxes are ready well before the deadline.
Finally, if you use a CPA to file, getting your paperwork in decreases the need for an extension. Being early to your professional’s doorstep is the best plan.
Are there downsides to filing your taxes early?
There are two things to consider when filing early. If you are waiting on corrected paperwork, you need to give it time to arrive. Also, if you are expecting to receive a tax bill rather than a refund, you may want to wait to file until you are prepared to pay it.
In the end, filing early is beneficial for most taxpayers. Look into your specific situation in order to figure out if filing your taxes early is the right move for you or your business. If you want help with your taxes, contact us today!