Let us be honest; we all dread tax season. It is stressful, it feels intrusive and there is a lot of terminology that is difficult to understand. We remain hopeful we will receive a tax refund, but we also worry that we might owe taxes. However, filing our taxes is something we must all do. So, if you are going to do it, why not do it early and reap the benefits? In 2020 we all had until April 15th to file our taxes; however, we could have filed as early as January 27th. Even if it is not tax season now, this information is still helpful in the future. So, when will you file your taxes in 2021?
Provides Time to Relax
If none of the benefits below get you to file your taxes early, maybe this one will. While everyone else is stressing to make sure their taxes get filed before the deadline, you will be able to sit back and RELAX because you have already got your taxes done. And lets be honest now, who doesnt love feeling relaxed while everyone else around them is stressing about something they still must finish. Even better, if you do have a tax refund, you can use the funds, or at least part of the funds, for something relaxing. Get a massage or even treat yourself to some delicious comfort food.
Do Not Let Someone Steal Your Identity
Yes, you read that right. The sooner you file your taxes the less chance you give identity thieves to use your Social Security number to file fraudulent taxes. Every year around $15.8 million is claimed in fraudulent refunds. You do not want your SSN and refund to be a part of those numbers. If you file your taxes but the system rejects your tax return, it may have rejected your application because there is already a tax return in the system. It can be a hassle, and an investigation may start, looking back at your taxes from multiple years. You can stop the identity thieves from stealing your Social Security number by filing your tax returns as soon as you can.
Owe Money? Give Yourself Time to Get It Together
Some of us may owe money to the IRS this upcoming tax season. If you do owe money that money must be paid before the date taxes are due. If you do not pay the proper amount of fees, it can cost you up to 25%. Once you start filing the proper paperwork, it will give you ample time to get all the correct forms and know how much, if any, you owe the IRS. Filing early gives you more time to pull that money together. Do you have enough money to cover a few hundred or even a few thousand dollars in owed taxes? Getting the funds together may take time. Filing early gives you a few weeks to save up the necessary funds.
Get Cash Faster
By filing your taxes sooner, you will also receive your refund sooner. Who does not want funds in their bank account? However, if you tried your best to get your taxes filed early but could not get everything together, it can be frustrating. No one is perfect, and it happens. Sometimes it is even out of your control. If you were expecting a bit of cash by a certain date, it can be frustrating if you do not get it, regardless of the reason. If you do not get your necessary tax refund by a certain time, you might consider applying for a payday loan. Check out some reasons why you should apply for a payday loan and how it can help you, here:https://paydayloans-advice.com.
If you want to file your taxes sooner next year, you can start the process a few ways. One of the best ways is by keeping a list of anything you will need for tax purposes. Make a note of all the places you have income. What jobs do you work throughout 2020? Do you have investments? Do you own something that provides you with income? Will you move over an IRA or 401K? Will there be a change to your health insurance? Will you receive Social Security Income? All of these are information you will need to provide for tax season next year. There are other forms that you may or may not need as well. Start your research today. Knowing what forms you will eventually need, will let you know when you have collected all the forms necessary.