Friday, February 1, 2013

9 Reasons You Should File Your Tax Return Early If You're Expecting a Refund

1. To prevent tax theft - Yes, kind of like identity theft but instead it is tax theft. This new kind of thieve steals your identity and uses it to get your refund from the government before you do. That is if you wait until April 15 to get your taxes in. So go claim your tax refund before someone else does. If you don't it could take months to years to get your refund if someone does steal your tax money.
2. You will know what you will be getting back - Or paying... Yes sometimes you could unexpectedly owe the IRS money. This could happen if you received a gift, or won something. Also if you received money from somewhere else other than your current place of employment. If you encounter this you could be in for a surprise. When you gather all the information need, early you can have time to move money around into the right accounts or save the money up so you can pay the IRS.
3. Missing the Mark - When you file early you won't have it hanging over your in April. The other benefit is that you won't have to fight all the people at the post office trying to get their tax returns handed in.
4. Get your money faster - The IRS is not as busy in the early months, so they can process your return faster. This getting money into your hands sooner.
5. It's your money - Since it is your money you could be doing other things with it instead of it being tied up with the IRS. You could be using it for many different things such as, gaining you interest at the bank in a saving account or CD's. You could be using to add to a retirement fund, or saving it for a rainy day. You could also use it for a vacation or home remodel or pay towards a credit card. Whatever it is you use it for its yours, you may as well have it in hand.
6. If you need an accountant or tax preparer - Finding a tax preparer will be much easier to find early on in the year, but not so easy to find near the dead line. You will have time to talk to the tax preparer to see if you get along with them. And if you don't you will be able to replace the tax preparer at a drop of a hat and find a new one without worry.
7. If a mistake is made on the tax forms - You will have time to correct any mistakes that may have been placed on the tax forms. If you realize there is a mistake on the tax forms after you sent them in you will have plenty of time to fix them and resubmit them with out penalties. Penalties could result if you owe them money and you file the correct information after the dead line.
8. Have more time to figure it out - When you are not in a rush to do your taxes you are less likely to make a mistake and have it done correctly the first time. Also doing your taxes early will allow you to let the tax forms sit on the side lines for a few days. This allowing you to come back to them to check to see if they are done correctly. More time equals less mistakes.
9. Reduce your chance of being audited - When you get your taxes in early, its sending a subtle message that your not trying hide anything. It shows you are obeying the rules of the IRS.

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