While it is tempting to put off filing your taxes, there are many advantages of filing early. To avoid hefty tax fines and prevent errors, you should know about the US tax deadlines of the year and file your return well before the date.
There may be chill felt in the air but April 15 is nearing and this means it is tax season once again. Regardless of what your financial situation is, no one anticipates filing their taxes. The forms are very confusing and complicated and the process of going through the documents and entering necessary data is daunting. Though you may be tempted to avoid dealing with 1040EZ, 1099s and W2s, there are remarkable advantages to filing your tax ahead of the deadline. Some of its benefits include:
Receiving Refunds Faster
If you are anticipating for a tax refund because of overpayment, it makes sense to file the soonest possible time. The IRS is accepting tax return as early as January and this time, it is not as busy as it is in April so you may get your refund sooner than if you would wait until later in the tax season.
When rushing to get everything done, it is always more likely that you will make some slipups and the one place you would not want to make a mistake at is on your tax return. In addition, filing early will give you sufficient amount of time to review and correct potential tax problems you may have. Whether you try figuring out tax credits or you are managing small business tax issues, it would be much easier to straighten things out if you have more time. On rare instances, you may find that the data on your 1099s or W2 is not accurate. Filing early will ensure you will have the time to request that corrected forms are filed with the Internal Revenue Service, reducing your risk of an audit. If ever you encounter a major problem, it would be easier for you to get consultation with a tax lawyer earlier in the season than waiting until the middle of April.
Avoid Fines and Fees
You have planned of filing your return on April 14 but what if unfortunate circumstances occur? Filing your tax return late could mean bearing some hefty consequences. If you have obligations on back taxes, you will not just have to pay the tax debt, but you will be responsible for interests and penalties as well. Failure to file penalty alone could increase the amount that you own by up to 25 percent. So if you owe taxes, it is a good idea to file sooner instead of later to avoid financial and emotional stress of rigorous tax fines and fees.
It is very important to file your taxes before the US tax deadlines than putting it off knowing it is still a few months or weeks away. You can enjoy the above given benefits if you opt to file your taxes earlier and you can also enjoy your tax refund in advance.
Sean Harris is a finance and business blogger and more of his work can be seen at irs-website.org