5 Reasons to File Your Taxes Early

Tax season is here! If that statement sent shivers through your body, your first instinct may be to put off filing your taxes until the last minute. However, you’ll find that the sooner you start preparing to file your taxes, the sooner you can put this task behind you and feel infinitely less stressed.

Filing early comes with several benefits, so why wait until April to file? Start by collecting your W-2s, 1099 INT (for your mortgage loan) and other tax documents as soon as you can and schedule your appointment with a tax professional. Here are a few reasons to file early:

1. Prevent fraud

   If your social security number has been compromised, scammers could file a tax return in your name. Filing your taxes early reduces the chance of an impostor stealing your identity and claiming your refund for themselves. If your return gets rejected because a return using your social security number has already been filed, it could take months to straighten everything out with the IRS.

    

2. More time to make a payment plan

   Just because you file early doesn’t mean you need to pay early. If you’re facing a tax bill rather than a refund, filing early not only lets you know exactly how much you owe, it also gives you more time to come up with the money before April 15. Hopefully, this means you’ll be less likely to dip into your emergency fund or throw off your budget.

    

3. Get your refund faster

   If you’re lucky enough to get a refund this year, file your return electronically with direct deposit to get your money in as little as 10 days—if you do it early. Filing electronically during peak time (the first two weeks in April) could mean you won’t see your refund for up to 18 days.

    

   Taxpayers who choose to file by regular mail will wait an additional three or four weeks. Once the IRS receives your paper tax return, they have to digitize it before it’s processed.

    

4. Avoid having to file a tax extension

   As you can imagine, the closer you get to April 15, the busier most tax pros are. If you wait too long, you’ll have to compete with others for the last remaining meeting times. This may result in the need to file an extension.

    

   Remember, filing an extension does not delay the due date for paying your taxes. According to the IRS, you should estimate the amount of your taxes and furnish that payment by April 15. The extension gives you more time to get all your documents together and fill out the forms. If you cannot pay the full amount of taxes you owe, contact the IRS to discuss payment options.

    

5. Avoid deadline stress

   If you’re feeling a little tense about your taxes, you’re not alone. In a recent TaxSlayer survey, 52% of those surveyed said they’ve experienced heightened stress when they think about filing their taxes. Going through the process of gathering the necessary financial documents—and possibly paying a hefty tax bill—can weigh heavily on your mind. This year, try giving yourself an earlier deadline to take care of everything on time.

    

Completing your taxes early gives you a sense of accomplishment. Once you’re done, reward yourself for being responsible this tax season. Get a pedicure, go out to a movie, or turn up the music and have a dance party. You’ve earned it