Taxpayers often think of early April as the official “tax season,” but it actually kicks off much sooner! The IRS starts accepting tax returns as early as January. You don’t need to wait until spring to file. In fact, there are plenty of reasons why filing your tax return early can be better for you in the long run.
Why Some People Decide to File Early
Even if just one of these benefits applies to your situation, planning ahead and filing early can save you a lot of trouble. Be sure to consider these perks!
1. You can collect your refund sooner.
Rather than having to wait for the government to process their returns, early filers are more likely to get their refunds faster. This means that you won’t be leaving your hard-earned money in the hands of the government for any longer than necessary.
2. You’ll be able to provide proof of income.
If you’re planning on making a major transaction such as buying a house in the next couple of months, filing your taxes early can also help provide proof of income that you may need. By having your tax return readily available before the typical filing date, you can quickly share it with your bank or other financial institution as soon as they request it. You’ll save time, and also reduce the stress of trying to track down the necessary information later on.
3. You can minimize your fraud risks.
With tax identity theft becoming an increasingly common problem, taking the necessary steps to protect yourself is essential. By filing your tax return as soon as possible, you reduce the window of opportunity for thieves to steal your withheld taxes and any potential refund that you might be owed.
4. You can avoid other filing disputes.
Another reason to file your taxes early is to avoid a dependent dispute. One of the most common reasons why e-filed returns are rejected is due to a dependent’s Social Security number having already been used by someone else. If you’re worried that an ex-spouse or family member may try to claim a dependent that you’re entitled to for your own return, filing your taxes early will give an extra layer of defense against any false claims.
5. You’ll get to beat the rush.
Finally, sending out your tax return early means you can lower some stress at the start of spring! As the tax filing deadline approaches, it can become increasingly difficult to get help or schedule an appointment with a tax professional. By taking care of your taxes as soon as possible, you can free up time and rest easy.
Need Help with Your Tax Returns?
Filing your taxes early has a number of benefits that shouldn’t be overlooked. From faster refunds and reduced risk of tax identity fraud, there are plenty of reasons why you should consider getting your forms organized and ready to go.
If you need help along the way, our team can help! Let’s gather your documentation, schedule a time to talk through any concerns, and get your tax return prepared, sent, and off your plate for the year. Send us a message to get started!