Unfortunately, taxes can’t be avoided! Read here for the reasons why you should prepare early for the tax season.

There’s a saying that goes, “Good things come for those who wait,” but with regret, we tell you that this phrase doesn’t apply to the tax season as well! One of the best reasons you should file your taxes early is to avoid tax fraud. Believe it or not, a lot of the citizens went through this thing, which isn’t pleasant at all.

Furthermore, starting your taxes early reduces the possibility that you will need a tax expert’s help to organize your accounts and submit your return on time. Let’s start with the number one reason why you should prepare early for the tax season on the next page!

When is the earliest date for tax filing?

Although the precise start of tax filing season changes from year to year, it typically occurs around the middle to end of January. To determine the precise day when the filing season for the next year begins, visit the IRS website.

Even though you may legally file a return on the opening day of the tax filing season, keep in mind that additional circumstances can make this timing more complicated.

For instance, firms must provide Form W-2 and Form 1099 to workers and contractors by January 31. You might not be able to submit a return in the first few days of tax season if your employer delays until the last minute to provide this crucial paperwork or other sorts of evidence.

Now, why is good for you to prepare early for the tax season? 

1. You will avoid stress

One of the main reasons why you should prepare early for the tax season is to avoid stress because we all know how bad it can be if we’re rushed into doing something and the deadline for it is knocking at the door!

To avoid unnecessary stress, start your filing early, if possible, right after the deadline is announced.

2. More time to pay taxes you owe

Let’s face it: Receiving bad news earlier is always preferable, especially if you don’t currently have the funds on hand to cover the bill. The good news is that if you fill out your tax returns soon after January 1, you will have more time to figure out how to pay the cost.

Furthermore, experts advise us to prepare early for the tax season because of fraud. It may be hard to believe, but one of the most frequent methods used by cyberthieves to submit a fake tax return is for someone to file your tax return before you do and take your refund.

3. Avoid fraud

We’ve been telling you since the beginning of the article that one of the best reasons you must prepare early for the tax season is because of fraud. Even if we live in modern times when people were supposed to become more and more civilized, the reality is not that sweet.

Now, the scary story that will soon turn into a bad dream for you sounds like this: Scammers will attempt to file taxes in your name using your personal information, claim fictitious income and perks, and take a refund. Can you see yourself experiencing this?

These scammers attempt to file taxes before you, resulting in an invalid return. If this were to occur, your actual tax return would be denied as the payment would have already been made and all your money would be… gone.

4. Avoid the tax season rush

If you will prepare early for the tax season you will definitely avoid all that season rush feeling when everybody is hurrying up because of the deadline. Don’t be one of them! By doing this, you’ll have enough time to thoroughly comprehend any changes that may affect your file (for either your case or the tax legislation).

Furthermore, you’ll have more time to look into and, if necessary, seek out the help of a reliable tax expert. In contrast to April, January and February are often less busy for tax preparers. Therefore, starting your taxes early will guarantee that you have time for a professional to handle your difficulties and worries and that you may receive assistance if you need it.

There is no point in denying that taxes are a pain in the neck for everybody! They come every year and before you know it it’s already the deadline to file them. But how many people understand how these taxes work and why do we have to pay them?

Don’t worry because we got you covered! Today, The Money Place team recommends a beginner’s guide to understanding taxes and why we pay them, called “Taxes Beginners Guide“. This book will help you become familiar with tax-related terms. It’s only $11.23 on Amazon! 

5. You will get easy access to financial information

Getting the correct information might be helpful if you are anticipating a significant life transition, such as buying a home or sending one of your kids or grandkids to university. To prove their family income, homebuyers, for instance, must present their full tax return.

Whether you anticipate a refund or a debt, filing your taxes early can give you a good start on the documentation required for these procedures.

6. Skip penalties

Another crucial reason why you must prepare early for the tax season is to avoid penalties because they’re going to cost you quite a bit of money. For every month that your return is late, you risk being fined up to 5% of the unpaid taxes.

If you don’t pay, you’ll also be assessed a penalty and interest. Although the maximum penalty is five months, you can still owe up to 25% of the unpaid tax. While you can contest fines, doing so requires time and effort. Always submit your paperwork and payments on time, and if necessary, request an extension.

There are a few more reasons why you SHOULD prepare early for the tax season! Just click on the next page to see them.

7. Faster tax refunds

This is probably one of the best reasons to prepare early for the tax season: you will get faster tax refunds! How can you do it as fast as possible? Electronically, of course. It is usually preferable to submit a return electronically if you want to get your refund promptly because it might take a while longer for paper returns. To find out when the program will start for the following year, visit the IRS website.

8. You will have enough time to double-check any errors you may make while filing

Not only does submitting a proper tax return guarantee that you will receive the highest potential refund, but it may also assist you in avoiding expensive and time-consuming audits. Because of this, you should take the time before filing your taxes to review all of the paperwork for any errors, confirm that you have what you need, and, if necessary, get tax assistance from a tax professional if you are unsure of what to do.

How early do you prepare for the tax season? Have you faced any difficulties until now? If so, tell us in the comments. We love hearing from you guys!

If reading about reasons you must prepare early for the tax season tickled your curiosity, you may also be interested in 6 Tax Return Secrets Most Accountants Hide From You.