What do they say? Taxes are one of the only certainties in life? We file our taxes every year, but why do so many of us put it off until the last minute? Filing your taxes early is always a good idea; a big reason is that if you’re due a refund you will likely get it faster!
A few additional reasons why filing your tax return by the April deadline is a good idea:
You may be entitled to stimulus funds.
If you didn’t receive a stimulus payment that you’re entitled to you can still claim that money on your 2021 taxes. If your income changed in 2021, you might be eligible for a stimulus payment without realizing it. The sooner you file your taxes, the quicker you’ll get that payday.
Filing early can reduce the risk of identity theft.
Identity theft is rampant. There are many different types of tax scams, the IRS even has a Tax Scams/Consumer Alerts page to help you stay alert. One of the best ways to prevent cybercriminals from filing a fraudulent tax return in your name is to file early. Resolving identity theft is a huge headache and can take months to clear up.
If you owe taxes, your payment is due in April anyway.
Even if you file an extension, you won’t have any extra time to pay if you owe on your prior year’s taxes.
Once you’ve filed, you don’t have to stress about it again until next year.
To reduce tax season stress year-round, there are some things you can do to stay organized and ready to file your taxes. For example, keeping all your tax documents in one place throughout the year will make it easy to forward all your documents to your tax preparer early in the tax season. Depending on the complexity of your return, you might need the following to file your return:
-W-2 forms
-1099 forms
-Mortgage and property tax statements
-Charitable donation receipts
-Business expenses
-K-1 form
Like most daunting tasks, it’s best to get filing your taxes out of the way as soon as possible.