Between the government shutdown and the changes to the U.S. Tax Code, this year’s tax season will be a very busy and confusing time of year for most taxpayers. That’s why it’s important that you try to file your tax return as soon as possible. There are several reasons that it’s important to either file your taxes early or have then filed for you as soon as you can. Here’s just a few benefits that come with filing your 2018 tax return early.
You Get Your Tax Refund Faster
For most taxpayers, the earlier you file your tax return, the earlier you will get your tax refund. There are some cases where the IRS will hold your refund for a little while, but for most of us, you will get your tax quickly if you file earlier in the season. If you choose direct deposit as the means for receiving your tax refund, you will get it even faster. Direct deposit is the fastest, easiest and safest way to get your tax refund and means you can put that money towards a vacation or paying off loans or other debt! The IRS expects to issue nine out of every 10 tax refunds within 21 days from accepting your tax return. If you’re using the money to pay off debt, file early so you get your tax refund quicker and can pay off that debt quicker and avoid interest accumulating.
File Your Taxes Online
Worried about making a mathematical error on your tax return? If you file online, you have a better chance of not making any mistakes. Filing your return online is not only the easiest and quickest way to file your tax return, but it also ensures the IRS receives your tax return and helps you avoid making small errors that could delay your tax returns processing. Filing online is encouraged for taxpayers with a simplified W-2.
Avoid Rushing Your Taxes
Putting off your taxes until closer to the deadline can hurt you in a few different ways. For instance, if you wait until the last minute, chances are you are going to rush through filing your tax return. This means you may miss tax deductions or tax credits that are available. It also means you may make simple mistakes on your return causing a delay in processing your return. You might also miss inputting important information such as your Social Security number or name of your spouse or birthdate of a dependent. Waiting until the last minute could also hurt you if you are going to owe taxes. If you end up owing more than you thought, you might not have time to come up with the money and could end up with penalties and interest on top of what you already owe.
Choosing a Third Party
If you are choosing to hire a professional to do your taxes, you definitely don’t want to wait until the last minute. Most tax services will either have a deadline for you to turn in your tax documents or may have a cut off of when they accept clients. If you’re going to get help filing your return, you need to find a service early and turn in all your documentation to them quickly.
Lowers Your Chance of Identity Theft
Lastly, filing your taxes early will lower your chances of identity theft. The IRS expects to see a surge in the filing of fraudulent tax returns this year due to both the government shutdown and the tax reform. If you wait to file your tax return, someone may steal your identity and file a tax return in your name an that would cause some major problems for you and will delay any tax refund you may have.
Additional Readings
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