For an estimated 153 million Americans, January means the beginning of tax season. The official kickoff is Monday, January 23. If reminders about tax time make you want to hit the snooze button until spring, lend your ears. Putting off your taxes can make you a mess come April 18, which is this year’s filing deadline. The IRS encourages early filing for lots of reasons; and it’s not just because it makes April less of a scramble at their headquarters. Below are three reasons why you should file early this year.
Prepare for the New Rules
Let’s be real: Are you up to date on the latest changes in the tax laws? Chances are, the answer to that is no. So by getting a jumpstart on your paperwork, you (or your CPA) will have more time to determine how or whether any changes for the 2016 tax season (such as slight adjustments to rules regarding standard and itemized deductions) could affect your returns. For a list of some of the changes, check out this IRS page.
Do yourself a favor: file early this year.
Get Your Refund Faster
The IRS says it expects to issue more than nine out of 10 refunds in less than 21 days from the time the returns are received. Last year, 73% of taxpayers scored money back, to an average refund of $2,857. So if you’re expecting a refund this year, why not try to get that money sooner than later—and start using it to help achieve some of your goals?
Reduce Chances of Fraud
Tax identity fraud is the largest and fastest-growing type of identity theft, according to the Federal Trade Commission, with scammers typically filing a tax return using someone else’s personal information and then pocketing their refund. The easiest way to protect yourself is to file early so a thief can’t beat you to the punch, according to the National Consumer League, a nonprofit consumer organization.
If you’re looking for tax advice that focuses on your particular needs, call Williams & Kunkel CPA today in Flower Mound at 972-446-1040 to have a chat.
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Source: Forbes