Believe it or not, we are in the thick of tax season.
Amid the flurry oftax forms flooding inboxes and mailboxes, you might wonder about filing taxes early this year.
Less enticing is rushing to submit tax documents if you owe money.
We spoke to several tax experts about the best time to file.
Worried You Wont Be Able to Pay Your Taxes?
We know tax season sneaks up on a lot of people.
Doesnt it always feel like wejustgot last years taxes taken care of?
When Does Tax Season Begin?
If it seems like everyone becomes a procrastinator during tax season, youre not wrong.
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How Early Can I File My Federal Tax Return?
Its full steam ahead for most taxpayers across the country.
You dont have to pay when you file, Persichitte clarifies.
Even if you cant pay your taxes, you should still file.
There are late-filing penalties that youll have to add to your bill.
If you cant pay, file your taxes as soon as possible, then get on a payment plan.
Do You Get a Bigger Tax Refund if You File Early?
Theres no evidence that filing early means bigger tax refunds.
One myth we can definitely debunk is whether when you file increases your chances of being audited.
Filing early or late has no impact on the chances of being audited, Weltman confirms.
Though some may believe otherwise.
5 Reasons to File an Early Tax Return
1.
Filing early avoids processing delays.
Persichitte advises his clients to file as early as they can.
Filing early helps you avoid the rush, fix any issues and understand your taxes.
If there is an issue like misspelling a name, the IRS rejects the return.
Filing early allows extra time to fix those kinds of problems as they arise.
Filing early limits stress over tax deadlines.
Having a deadline hanging over your head is never pleasant.
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Filing early decreases the risk of tax identity theft.
Early filing is a way to thwart tax identity theft, Weltman explains.
If you file early, it prevents an identity thief from filing under your Social Security number.
Tax refund fraud happens a lot more than you might think.
Filing early provides time to put a payment plan in place.
The longer you wait to file, the less time youll have to determine if you owe money.
Before that tax bill comes knocking, give yourself a few weeks to devise a plan.
Persichitte saysgig workersare notorious procrastinators.
Typically, they will owe taxes and put it off because they dont want to pay the bill.
Oftentimes, they are shocked by how much they owe in taxes.
Filing early makes connecting with a tax preparer easier.
If you think youre busy during tax season, wait until you see your accountants schedule.
The additional child tax credit.
Earned income tax credit.
Taxes can be a lot to manage.
Are There Any Reasons Not to File Early During Tax Season?
Persichitte echoes this advice.
I would only wait to file if you are still waiting on a document.
Some documents, like K-1s, might not be available until after the filing deadline.
The best action is to file an extension right when you know your documents will be late.
Drowning in Expenses?
Maybe youre scrambling after your car broke down.
Or you got a medical bill you werent expecting.
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You dont need to go it alone.
When money is tight,these resourcescan help you manage unexpected expenses without stress.
Kaz Weida is a senior staff writer at The Penny Hoarder covering saving money and budgeting.
