4 Valuable Reasons To Get Started On Your Income Taxes Early
As the new year starts, it's time for another season to begin. What season? Income tax season. And while those words don't fill most people's hearts with glee, there are several good reasons to embrace the start of tax season and get a jump on filing now.
What are those reasons? Here are the top four.
Time to Work. Getting all the deductions and credits to which you're entitled can sometimes require a little extra work. You may need to contact companies, schools, and providers for records. If you wait until March or April, you're likely to be in a rush and not able to collect all the info you need. This is particularly important for self-employed taxpayers, who often need time to collect receipts, track mileage, prepare ledgers of expenses, and determine their income.
Avoid Refund Theft. Refund theft occurs when someone else files a tax return using your Social Security number and name, claiming an erroneous refund. If someone else files using your information before you do, you will end up with delays—up to several months—while you prove your identity to the IRS. With increased dangers of hacking and identity theft, thwarting misuse of your information is vital.
Time to Pay. Just because you file early doesn't mean that any tax due must be paid early. If you suspect you may have to pay additional tax this year, it's a good idea to file early in the season so that you know what that bill is. This way, you have time to plan before the actual bill is due in April. Time to prepare a payment strategy will help you control your finances better and prevent additional stress.
Avoid the Crowd. Millions of other taxpayers will be trying to file their taxes using the same software, the same websites, and the same tax preparers. And a large amount of them will wait until late March or April in order to start (or finish) the process of filing. That last minute rush can make it hard to get an appointment with your tax professional, cost time and money while you wait, and make both of you more stressed to get everything done.
Its easy to see why starting on your income taxes during January or February brings benefits to all. You'll have time to properly work and plan while avoiding the dangers of identity theft. So, why not schedule an appointment today?
Contact a company like The Callen Accounting Group, PLLC for more information.