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There are several reasons why it’s beneficial to file as soon as you can. Just like any other task, procrastinating on your taxes will catch up with you in the long run. Here’s our top 7 reasons to file your taxes early.
1. Receive your tax refund faster
Everyone loves a tax refund. And the sooner you file, the sooner you’ll receive yours.
Pro tip: Filing goes faster when you have all of your documents ready to go. Our Intuit Link Service to help you quickly prepare and upload all your tax documents.
2. Take advantage of every tax break you deserve
It is always better to file your taxes without the added stress of having limited time. If you are rushing to file, you might neglect to claim certain tax breaks.
Luckily, we find all the credits and deductions you qualify for based on the info you provide. File early and let us make sure you get your maximum refund.
3. Reconcile tax-relief related amounts to prevent refund delays
The IRS is sending letters to those who received advance Child Tax Credit payments. Be on the lookout for Letter 6419 and be sure to hold on to it. You will need to report the amount of advance payments you’ve received when you file your 2021 tax return.
It is important to report the correct amount to receive any additional credit that you’re due and to prevent your refund from being held. If you do not receive the letter, you should be able to see the advance payments you’ve received using this IRS portal.
On a similar note, if you received a third stimulus payment (issued March – Dec. 2021), you should receive Letter 6475 from the IRS. Hold on to this document as well to report the payment on your 2021 return. You may have already received Notice 1444-C, which also has third stimulus information. If you don’t receive these notices, you should be able to confirm your payment amount through your online IRS account.
4. Have more time to pay if you owe
If you end up owing taxes, you don’t want to find out at the last minute. If you file at the beginning of the season, you could have as many as three and a half months to figure out how to pay your tax bill. You can also set up a payment plan with the IRS if you aren’t able to pay by the filing deadline. Either way, filing early gives you more time and options to pay your bill.
5. Find the best filing option
Filing at the last minute means you might choose the first tax prep option stumble across. Having time to compare options lets you be more selective.
We have several options, so you can find the right one for your unique tax situation and budget.
6. Experience other financial benefits
Getting your refund sooner has financial advantages. If you use it to pay off debt, you may end up owing less in interest by paying off your debt sooner.
If you want to put it toward a down payment on a house, a car, or a vacation, you will be able to make these purchases sooner.
If you plan to use your tax refund for an application for financial aid, scholarships, a mortgage, or other loans, you’ll know where you stand sooner so you can make a plan if you need to take more steps before applying.
7. Protect your info and refund from identity thieves
If an identity theft gets your Social Security number, they can use it to file a fraudulent tax return. If you file early, you are less like to experience this issue. While you can usually get this issue resolved, it can delay your refund.
Remember – the sooner you file, the sooner you’ll receive your refund!
Source: Top Reasons To file Early | TaxSlayer.com