Five Reasons to File Your Tax Return ASAP
It’s tempting to wait until the last minute to file your taxes . But paying your taxes sooner or later can save you time, money and stress in the future. Here are some top reasons to start preparing your taxes now.
Why You Should Pay Your Taxes ASAP
Get your refund faster
This is the biggest one. If you’re owed a tax refund, filing early means you’ll get the money back faster. The IRS pays most refunds within 21 days of receiving your tax return, but you may wait longer as the deadline approaches. So file your claim as soon as possible to get your refund in weeks rather than months.
Avoid fines
If you wait too long and miss the tax return filing deadline, you may face penalties such as failure to file a penalty, which is typically 5% of the amount of tax due for each month your tax return is late. Eliminate your taxes now so you don’t have to worry about these extra costs at all.
Find problems earlier
If you start early, you’ll have more time to notice and correct any potential errors or problems upon your return. Finding and correcting errors now will save you more headaches in the future if you have to change your taxes.
Beat the last minute rush
As the tax deadline approaches , CPAs and tax preparation services are inundated with requests. Submit your application early and you can work with tax professionals at a time that suits you, rather than waiting in the final frantic weeks.
Preparing for next year
Use your completed return as a basis to begin your 2024 tax planning. Look for ways to increase income, reduce expenses, maximize credits and deductions , and improve your overall financial picture for next year’s taxes.
In general, it’s best to prepare your tax return as soon as you have all the necessary documentation, such as your W-2 and 1099. Getting a head start allows you to file accurately, avoid penalties, maximize your refund, and plan ahead. Don’t wait—check your tax to-do list now so you can file and get taxes off your list as soon as possible.