All the Reasons to File Your Taxes ASAP

The Importance Of Filing Your Taxes As Soon As Possible 

Filing taxes can be a stressful time for many people. Especially if you have to wait until the April deadline set by the IRS. It may feel like that April deadline is ages away but there are good reasons why it’s a good idea to file your taxes as soon as possible. Here are just a few reasons why filing your taxes ASAP might be a good choice.

Get an Early Refund 

One of the biggest advantages to filing your taxes early is the potential for an early tax refund. If you choose to file your taxes electronically and set up direct deposit for your federal refund, you could get your money back in as few as three weeks. This can come as an especially nice surprise if you didn’t realize you were set to receive a refund at all.

It Makes Filing Quick and Easier 

The sooner you get started on filing your taxes, the easier the process will be. One of the main reasons is because you’ll have plenty of time to explore the forms, complete them accurately and ask questions along the way. It can be hard to complete an accurate return when you try to do it quickly.

Avoid Delay-related Stress and Penalties The 

April tax deadline can sneak up on you. If you wait until the last minute, you may find yourself trying to file a rushed and possibly inaccurate return. This can lead to more paperwork, stress and potentially costly penalties.

Lower the Risk of Fraud

Not all tax-related fraud is related to identity theft. Even honest mistakes on tax returns can lead to problems, particularly if you wait until the last minute to file. If you file early, you can avoid a last-minute rush and you’ll have more time to detect any mistakes.

Time To Research Deductions 

The earlier you file your taxes, the more opportunity you have to find information about tax deductions and credits. You can claim deductions and credits you never knew were available resulting in a bigger refund. Educate yourself about these deductions and you’ll end up with more of your money in your pocket.

It Will Help With Financial Planning 

When you file your taxes early, you’ll be able to plan your finances earlier. For example, if you’re expecting a refund, knowing the amount early on can help you make plans to put that money to good use, like setting up an emergency fund, paying off some debt, or investing it in a smart way.

Types of Tax Software to File Your Tax Return 

There are many services available to help file your taxes. Some are free and some require a fee. Here are a few of the tax filing services available:

• Tax preparation software – The most popular software used to file taxes is tax preparation software. The most essential ones like TurboTax and H&R Block are easy to download and are set up to easily guide you through the filing process. Some of them are even free to use.

• Online filing through the IRS – If your income is less than $69,000, you can use the IRS Free File program to file your taxes for free. You will be required to use a partner software or online assistant, but it is completely free to use with no hidden costs.

• Online tax preparer – Other than the free option, you can use an online preparer to do your taxes. A lot of these services aren’t free, but they offer more assistance, advice and support should you run into any problems when filing.

• Professional Tax Preparation – This should be your last resort if you’ve tried to file your return yourself but can’t seem to get it right. A professional can help you figure it out and prepare an accurate and complete return for you.

Where To File Your Tax Return 

Now that you’ve determined how you’ll file your taxes, where do you actually file them? Here are some options for filing your tax return:

• By mail – You can always file your taxes by mail if you’d prefer. Just remember that snail mail’s processing time may mean you could get your refund later than if you filed electronically.

• At a local IRS office– You can also file your taxes at a local IRS office. Be sure to check their website for office hours and any requirements you need to bring.

• At designated tax filing locations – Some outlets such as banks, grocery stores and libraries offer services specifically dedicated to tax filing. Check with your local establishments to find out more.

• Through your employer – If you have an employer, your place of work might offer services to file your taxes electronically. Check with your human resources department to find out more.

Tips for Filing Your Tax Return 

Filing taxes can be a complicated process. Here are a few tips for filing your tax return:

• Gather all your personal information in advance – Make sure you have all the necessary information such as social security numbers, birthdays and addresses of those who’ll be listed in your return.

• Double-check all your info – Before you file, double-check all your information to make sure it’s correct and up-to-date.

• Track your refund – If you’ve requested a refund, track it using IRS.gov’s “Where’s My Refund?” feature

• Archive copies of your return – When you’ve finished filing your taxes successfully, keep a record of all the documents so you can refer back to them.

• Associate the filing of your taxes with something positive – This is the last step, but an important one. Treat yourself with some extra special self-care on Tax Day, so that you can connect the act of filing with something positive.

Filing taxes can be a stressful time, but there’s no need to wait until April to do it. Doing so will give you an opportunity to get a potentially early tax refunds, avoid delay-related stress, lower the risk of fraud, take advantage of deductions, and plan your finances. Just be sure to be prepare all your personal information, double-check your data and archive your documents, and you’ll be one step ahead and feeling less anxiety about the dreaded tax season.

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