Sometimes it makes sense to file your return as late as possible, but it can be even more important for some individuals to file their return early in the tax season.
Here are five good reasons to file your tax return early:
1. Educational Benefit Needs
If you or a dependent are seeking financial assistance for school, most colleges & universities require the FAFSA to determine eligibility for grants, scholarships, and financial aid. You can submit the form with estimated tax numbers and then go back later and update them. But it is best to get the information submitted and finalized as soon as possible.
2. Getting Your Refund
Why let the government hold your funds interest-free? Refund processing is often delayed due to the government’s habit of creating late changing tax laws and the IRS understaffing problem. So the sooner your tax return is in the queue, the sooner you’ll receive your refund.
3. Protecting Against ID Theft
Tax identify fraud works best for thieves early in the tax filing season. This is because your withholdings are still in the hands of the IRS. If thieves can beat you to the filing window, they can try to steal your withholdings. So if your identity is stolen or vendor sites you use are breached, you may choose to take this route.
4. Claiming Dependents
One of the most common e-file reject errors is using a dependent’s social security number already used by someone else. If you think there is a chance of this happening to you, you’ll want to file as early as possible.
5. Others need Your Tax Return
A filed tax return may be required if you are planning to buy a house or anticipate any other large transaction requiring proof of income.
Should any of these situations describe you, it’s best to set your tax appointment early in the tax filing season. Typically right after all of your tax forms are received in late January or early February. Contact us today if you have any questions or need to schedule your appointment.