One of the mistakes taxpayers make is to wait for the last minutes before filing their taxes. Filing your taxes late could attract penalties. Ordinarily, the best time to file your taxes is before March 15th. There are several reasons why you should submit your tax returns earlier than March 15th. Some of these reasons are as follows.
Faster Tax Refunds
You tend to get your tax refunds faster when you file your taxes earlier. You could get your tax refunds within a few days if you file your taxes online with direct deposit into your bank account.
Extra Time to Pay The Taxes You Owe
When you file your taxes early, you have enough time to pay off the outstanding tax you owe. The best time to submit your tax returns is around the end of January.
Enable You to Obtain Financial Information
When you submit your tax return early, you can easily plan your finances for the year. For instance, if you want to embark on a major project like purchasing a house, filing your taxes will enable you to obtain important information. It’s also a legal requirement to show your completed tax return as proof of your household income when you want to buy real estate property.
Avoid a Tax Extension
The easiest way to avoid tax extension is to file your tax earlier than March. However, when you wait till the last minute before filing your tax, you tend to request a filing extension.
Prevent Tax Return Identity Theft
When you submit your tax returns, it’s easy to fend off identity theft. There are several criminals out there who will look for ways to access your personal information. Once they do, they will file a fake tax return in your name to get your tax refunds. However, when you file early enough, you must have received your refund before anybody tries to steal it. Contact us today for help with your taxes.