There will always be a crowd of taxpayers who wait until the last minute in April to file federal income tax returns. While there are benefits such as receiving your tax refunds faster, there are other helpful perks to submitting your taxes as soon as possible including the following:
- Preventing tax return identity theft
- Extra time to pay your taxes
- Obtaining vital information for financial planning
Preventing tax return identity theft
When filing early, this may not eliminate the possibility of identity theft but it will protect your refund from falling into the wrong hands. Most cases of tax-related identity theft occur early in the tax season. When an identity thief files a return using your Social Security before you get the chance, the IRS will automatically deny access to your tax return because they assume that you have already filed it. It is important to highlight that once a criminal has access to your Social Security number, that is all they need to file in your name. In this case, you will have to file a paper return and your refund will be delayed several months.
Extra time to pay your taxes
As a taxpayer, you may be facing a tax bill rather than a refund. Many assume that by putting of filing as long as possible will help you save money in time for the last minute mid-April. If you file your taxes early, you will be at an advantage of knowing exactly how much you owe the IRS, without having to pay in full until April’s filing deadline. Knowing your amount due earlier will allow you to plan and budget so you are able to pay the amount due at the deadline. Planning your spending in that period of time can allow for you to get your tax bill out the way stress-free.
Obtaining vital information for financial planning
Are you going to be going through a life change in 2018? Events such as renting or buying a new home or sending your child to college can help you plan ahead for the large investments you plan to make. When you are looking to purchase a house, you may have to disclose your tax return to verify your household income for the year in order to receive a mortgage loan. and when your child goes off to college, financial aid applications rely on certain forms in order to complete the process. Any large investment made that require certain tax information can easily get completed quicker once you receive your tax information, regardless if you expect a refund or owe money to the IRS.
Have additional questions about your 2017 federal income tax returns? DMA offers electronic filing, 48-hour tax preparation, tax planning, IRS representation, and guaranteed accuracy. Get in touch with us today!