Sumathi Narayanan Realty's Blog
There are several advantages you stand to gain when you file your taxes early. To receive a tax refund, it is essential that you submit your forms as soon as possible. Some benefits of filing your tax return early are:
Quicker tax refunds
One of the most popular reasons people file their tax return early is to receive a faster tax refund. The quickest means to get your refund is to file your return through electronic means with direct deposit into your bank.
Protection from tax return identity theft
Another benefit of filing your taxes speedily is to protect you from tax return identity theft. If a criminal gets access to your social security number, the person has everything needed to file a tax return on your behalf which could lead to you losing all your tax refund. Prevent this kind of theft by keeping your SSN secret and file your taxes at the beginning of the season.
Avoiding Tax Extension
When you file your taxes early, you eliminate the need to file an extension. A tax extension is usually necessary as a result of disorganization. Some people that do not submit their taxes early will need to look for additional deductions or gather receipts which could lead to an incomplete filing.
When you delay in filing your taxes, you increase the chances of employing the service of tax professional to assist you in getting things done. If you file for an extension but do not settle your debt, and you have a balance due, you must pay interest and penalties on the outstanding tax debt until it is cleared. Avoid this situation by preparing your file as early as possible.
Obtaining financial information
One of the benefits of filing your taxes as early as possible is that it gives you access to your financial information. If you want to buy a house or return to college, preparing your tax return as early as possible will help you obtain the essential information you need. The data from form 1040 are necessary, college students can use such information to apply for financial aid. Also, anybody that intends to buy a house must present a completed tax return as evidence of their household income.
File your taxes early or call a tax specialist in your locality to assist you if you are having trouble with your taxes.