Tax season is upon us and you may be waiting to file your return until April 15, but here are few expert tax tips on why file taxes early and how it could benefit you and your wallet.
Firstly, if you file taxes early you will beat criminals to the punch. Once you complete your tax filing with the IRS, the information, including your social security number, is locked and cannot be accessed by anyone.
According to Mark A. Steber, chief tax officer at full-service tax preparation company, Jackson Hewitt Tax Service, said that identity theft is a major problem and tied to tax refund fraud.
Steber suggests one of the easiest ways to prevent fraud is to file taxes early to secure the information and your refund.
The sooner you file your returns, the sooner you will get your tax refund (should one be due back to you.)
TurboTax and Lisa Greene-Lewis, the CPA expert, said that in the last tax season, three out four filers received a tax refund. The average amount per refund was around $2,800.
Be aware that there will be some delays for those who are claiming the Additional Child Tax Credit or Earned Income Tax Credit. The IRS still expects to issue 9 out of 10 refunds within three weeks from the date a return is received.
If you file taxes early you will have more time in hand to analyse your filings and returns. Those who wait until last minute may make some errors or forget something, Greene-Lewis said.
Preparing earlier gives you ample time to gather all paperwork and seek expert help if needed. A taxpayer should have received his or her tax paperwork by January 31.
Greene-Lewis said the majority taxpayers are not procrastinators. About 20 % of people file returns in the last two weeks before the tax deadline, and another 10% to 12 % pay later, but the bulk of taxpayers file early. She further noted that with all the improvements in taxation filing software, still there are few excuses to delay returns.
United Financial Counselors can help file taxes early. Visit our other blogs for more tax tips or should you have any questions, please visit our website UnitedCounselors.org or contact our live agents at 954-372-4370.