Tax season is here, and while many people delay filing their tax return as long as possible, there are several benefits of filing your taxes early.
Whether you’re an individual taxpayer or a business owner, getting ahead of the tax deadline can help you avoid unnecessary stress, minimize risks, and even put money back in your pocket sooner.
If you’re wondering whether early filing is right for you, here are 7 compelling reasons to consider submitting your return as soon as possible.
1. Get Your Tax Refund Faster
If you anticipate receiving a refund, filing your tax return early means you’ll get your money sooner. There’s no reason to let the government hold onto your money interest-free when those funds could be in your bank account instead.
While the IRS delays refunds for tax returns that include the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until after February 15th, filing early ensures your return is processed as soon as those refunds start getting distributed. The earlier your return is in the system, the sooner you’ll get your refund.
2. Reduce The Risk Of Tax Identity Theft
Tax-related identity theft is a growing concern, and one of the most effective ways to protect yourself is to file your return before criminals have a chance to do so.
Fraudsters attempt to file false tax returns using stolen Social Security numbers, hoping to claim refunds before the rightful taxpayer has a chance to file. By submitting your tax return early, you effectively shut down any opportunity for identity thieves to file a fraudulent return in your name.
3. Avoid Dependent Claim Disputes
A common issue that leads to rejected tax returns is when someone else has already claimed a dependent that you intended to claim. This situation often arises in cases of divorce or shared custody agreements.
If you believe there’s a chance another person may attempt to claim your child or dependent before you do, filing early can help you avoid complications and give you time to resolve any disputes before the tax deadline.
4. Have Proof Of Income When You Need It
There are many situations where you may need to provide proof of income, such as applying for a mortgage, refinancing a loan, securing business financing, or qualifying for financial aid.
Many financial institutions require a filed tax return as part of their documentation process. If you’re planning any major financial transactions in the near future, having your tax return completed early ensures you have the necessary paperwork ready when needed.
5. Gain Access To Tax Professionals Before The Rush
As the April 15th tax deadline approaches, tax professionals become increasingly busy, and appointment availability becomes limited. By filing early, you can secure a spot with your CPA or tax preparer while they still have ample time to dedicate to your return.
Waiting until the last minute can result in a more stressful experience, with less opportunity for thorough tax planning and potential savings.
6. Reduce Tax Season Stress
Procrastination often leads to unnecessary stress, and taxes are no exception. The closer you get to the filing deadline, the more pressure you may feel to gather documents, ensure accuracy, and submit your return on time.
Filing early allows you to complete this annual responsibility with less anxiety, freeing up your time to focus on other priorities.
7. Plan For Any Tax Payment Obligations
Some taxpayers delay tax filing because they know they owe money to the IRS and want to postpone making that payment.
While it’s true that the payment deadline remains April 15th, filing early gives you a clear understanding of your tax liability, allowing you to budget accordingly.
Rather than scrambling to come up with the funds at the last minute, you’ll have time to plan and make your payment by the deadline without unnecessary financial strain.
Need Help Filing Your Taxes Early?
At Minton CPA & Associates, we understand that tax season can be overwhelming, but you don’t have to navigate it alone.
We provide expert tax preparation services to help individuals and business owners file their returns accurately and efficiently. With tax season in full swing, now is the time to get started.
Avoid the last-minute rush, reduce stress, and take control of your tax situation by filing your return as soon as possible. Contact us today at 757-546-2870 to schedule your tax preparation appointment.
Let our team of experienced professionals handle your tax needs so you can focus on what matters most!