Millions of Americans wait until the last week of the tax filing deadline to prepare their paperwork and file their taxes. statements. And according to the IRS, 20-25 % of Americans do not prepare their returns until two weeks before the April deadline.
Filing earlier helps you catch potential errors on your return, keep your stress levels down and possibly save you some money.
Here are some good reasons to file your taxes sooner rather than later.
Stay on top of your budget
By filing your taxes, you'll have a better idea of how much your refund will be or how much you'll have to pay back. And if you earned more or less income last year, you should also take into account any changes in tax law that may apply to you as well.
By taking care of this earlier, you can adjust, plan and budget your finances for the rest of the year. You'll also be in a better position to set money goals, such as paying off debt or saving for retirement.
Accelerate That Payback
One of the most popular reasons for getting your taxes sent to you as soon as possible is to access your refund sooner.
If you know you are going to receive a refund, you can also file your taxes online and have the funds deposited directly into your bank account. This is a much faster approach to getting your refund rather than waiting for your check to arrive in the mail.
Optimize Your Return
This way, you can replace or request other important documents, if necessary, and still be well ahead of Tax Day.
It is also a good practice to gather all tax documentation earlier to save more money. Generally, the more accurate the information you provide on your tax return, the more potential you have for a larger refund.
Avoid The Rush
Sitting down with your accountant or tax professional at the beginning of tax season is best for you and for them. By meeting earlier, they can pay more attention to your return and spend more time crunching all the numbers. If you postpone that meeting until late March or early April (as most taxpayers do), your time is likely to be much more limited and you will have to rush through your return.
Starting early will help you beat the crowd and give your tax professional plenty of time to work on your tax situation.
Keep Your Stress Level Low
These days it's typical to feel stressed about money, and that feeling can get even worse during tax season. Fear and uncertainty about whether you will get a refund or owe much more than anticipated can cause more anxiety, worry and doubt.
The best thing to do is to get ahead of this and save yourself the anguish by making your tax return a priority. By doing so, you will have a greater sense of relief and be happier that you didn't wait until the last minute.
Take Control Of Your Debt
Another good benefit of filing your taxes early is to be able to apply your return for pay your debt. If you have a lot of debt and aren't sure how to resolve it, National Debt Relief can help you turn things around. Our debt coaches can help you reduce or pay off your debt, for much less than you owe, in as little as 24 to 48 months.