When it comes to filing your taxes, the early bird gets the worm! Here are five reasons you should file your taxes early this year:
1. You will have extra time to pay taxes if you owe them
If you file your taxes early and believe you might owe the IRS money, filing early is the better option. You won’t have to pay off your balance until mid-April, when the filing deadline rolls around, and you’ll have more time to arrange your payment plan.
2. You can take big life steps for the next year
Many big financial steps, like applying for a mortgage or reapplying for financial aid (if you’re still in school), require a completed tax return to help assess your financial stability and needs. Filing your taxes early means you’ll have that necessary financial paperwork sooner and you can get to work on your life goals.
3. You’ll avoid having to file for an extension
Filing for an extension can be tricky – and if you do it incorrectly, you risk filing your taxes late. Avoid the extension altogether by filing your taxes early. By streamlining your filing process earlier in the year, you’ll make the most of your deductions and write-offs as opposed to scrambling to find ways to save at the very last second.
4. You’ll decrease chances of identity theft
Don’t let someone illegally cash in on your refund. Identity theft is one of the biggest financial concerns people face today. (The IRS estimates it paid out over $5.2 billion in fraudulent identity theft benefits in 2013 alone.) According to the Journal of Accountancy, filing early can help prevent potential thieves filing on your behalf because it decreases the time thieves have to make a fraudulent claim.
5. You’ll get your refund sooner
This is the most fun reason to file early! You’ll get your tax refund sooner when you file before the April deadline. With the extra money, you’ll be able to think about what you and your family need most, like affordable auto or term life insurance.
Are you planning on filing taxes early this year? We want to know! Tell us in the comments below!
*Material in these articles is for general information or entertainment purposes only. Direct General does not endorse and is not affiliated with any of the companies or apps listed in this article. Direct General is not responsible or liable for the availability of links to websites or resources, or for any content, advertising, products, services or other materials on or available through these websites or resources. Any references to third party rates or products are subject to change without notice. Trademarks are property of their respective owners.