5 Reasons Why you Should File your Federal Taxes Early

Since tax season has come and gone, most people are not thinking about filing their federal taxes for next year. However, instead of waiting until the last minute to file, consider having all your required documents ready to go in order to prepare for next years tax season.

Having all your receipts, documents, and forms ready will make it easier to file when the time comes. Filing as soon as possible means there is one less thing to worry about. If you have all your required documents in hand, why put it off? The IRS lets you file as early as January.

While many people procrastinate to complete their taxes, here are five reason you should file your federal taxes early.

1. No tax extension required. If you sit down and take care of your taxes and file them right away, you will not have to file for an extension. By putting it off, the due date will come up fast and you may end up having to file for an extension.

2. Avoid late penalties or interest. Often times, you may believe you still have plenty of time to file when in fact you don’t. When you owe the IRS money, if you do not file on time, you could end up paying interest or even penalty charges.

3. If you are getting a refund, you get it earlier. While this may not apply to everyone, getting some of your money back should be a big incentive to file early. Even if you owe money, getting that bill out of the way can cause relief and avoid you from having to get a personal loan.

4. Rushing can lead to mistakes. Filing your federal taxes early means you have time to do a thorough review before submitting. If you have made mistakes or are missing documents, filing early gives you time to fix the errors with plenty of time to still file. If you file with mistakes, you could risk being audited in the future.

5. No appointment available. If you wait until the last minute to schedule an appointment with your tax accountant, he or she may be already booked. The closer to the deadline, the more likelihood there will not be an appointment available.

Besides all the reasons mentioned, if you wait until the very last minute, you may find yourself fighting a mad crowd at the post office. Avoid this by filing your taxes early instead of a couple days before the deadline.