The Perks of Filing Tax Returns Early
Many people put off filing their federal income tax forms until the last minute every year. Even though it’s common to put off filing taxes until the last minute, doing so can be beneficial in many ways. Let a tax service provider submit your return as soon as possible if you expect reimbursement. Those with an outstanding tax bill can also profit by filing early.
Faster tax refunds
Filing taxes early is often done so that the refund can be obtained more quickly. The quickest option to collect your refund is to file your return electronically and have the money deposited directly into your bank account. If you need your refund immediately, e-filing is your best bet because it might take several weeks longer for paper returns to be processed.
Extra time to pay taxes you owe
Even if you owe money to the IRS, there may be good reasons to file your tax return as soon as possible. If you file your return in the middle of January, you are not required to pay any taxes owed until the filing deadline. By completing your Form 1040 early, you will have time to make payment arrangements. This additional time is especially helpful for people who need to determine their exact IRS debt.
Obtaining financial information
Preparing your tax return early may provide you access to user data for important life transitions like buying a home or going back to school. Homebuyers need a tax return to prove income, while college students require Form 1040 to qualify for help. If you expect a refund or must pay taxes, filing early gives you time to gather papers.
Preventing tax return identity theft
If a criminal obtains your personal information, including your Social Security number, they can easily submit a tax return in your name. The intent of filing a false tax return is not to settle tax arrears but rather to keep the money. Most victims of this fraud don’t even think about filing their taxes until late February or March. If you can, file your taxes early to avoid having your SSN revealed to identity thieves.
Let the experts do the taxes for you. If you are in Sylmar, CA, the experts of Mifra Financial can provide you with a reliable tax service. Call us (818) 356-6879 today for inquiries.