The Benefits of Starting Your Taxes Early

When you work in the field of tax preparation in Des Moines, IA, you see a shocking number of people and businesses wait until the very last minute to turn their taxes in every single year. It never fails—many people don’t even look at their tax documents until the calendar turns to April.

While you technically don’t need to have your taxes done until mid-April, there are a lot of benefits that come with getting a head start and filing early. Here are just a few of the biggest reasons why you should get your taxes done as soon as possible once the new year hits:

  • Get your refund earlier: If you know you’re going to be getting a tax refund, you probably want to get your hands on that money as soon as possible. If you file your return electronically, that money will be directly deposited into your bank account. It can take several weeks longer for this to happen if you have paper returns, so you can maximize the efficiency with which you get your return by e-filing. This past year the IRS started accepting e-filed returns on January 29, so you could very well have your tax refund by early February if you start right away!
  • Give yourself more time to pay your owed taxes: If you owe a balance to the IRS, it’s a good idea to file your return as soon as possible. Even if you submit your return in January, you do not have to pay your owed taxes until the filing deadline in mid-April. This gives you more time to save for and make any necessary arrangements for your payment. This is especially helpful if you’re unsure how much money you’re going to owe to the IRS—it’s better to get an exact dollar amount as soon as you can so you know what financial steps you need to take.
  • Get important financial information quickly: Sometimes you need tax paperwork or other important financial information for big life events, such as applying for college or purchasing a house. By preparing your tax return early, you can get this important information as soon as possible, minimizing the delays in whatever type of application process you are going through.
  • Prevent identity theft: If someone gets access to your Social Security number, they could use that information to file a tax return in your name. The purpose of this is to take your tax refund for themselves. Usually this scam happens early on in the tax season, so if you get your tax return taken care of early, you won’t have to worry about it nearly as much.
  • Avoid having to file for an extension: Filing your return early can help you avoid the need to file an extension. In most cases, extensions are only required because of a lack of organization, not because there’s a financial need. Avoid the hassle of an extension and get your return done early.

For more information about tax preparation in Des Moines, IA, or to schedule an appointment with an expert, contact Accounting & Tax Professionals, PLC today.

Leave a Comment