6 Reasons it Pays to File Your Taxes Early
written by Lisa Lewis, CPA for blog.turbotax.intuit.com
As the saying goes, “the early bird gets the worm.” Or is it the tax refund?
Well, whether you file early or you are a tax procrastinator, you still may get a tax refund, but here are six reasons it pays to file early.
- Get your tax refund ASAP: Last tax season, close to 75% of filers received a tax refund and the average direct deposit tax refund was over $3,000. That’s a lot of money! You could pay down credit card debt, student loans, or save it for a rainy day.
- Filing online is easy: Using TurboTax online is easy, accurate and saves you money. Once you have gathered your tax information, you can go online and answer simple questions about yourself and get your maximum tax refund. TurboTax searches over 350 tax deductions and credits and makes sure you get everyone you deserve based on your answers. There’s no reason to stand in line at a tax store when you can do your taxes in the comfort of your own home and even on the go. Plus, you can now connect live via one-way video to a TurboTax LiveCPA or Enrolled Agent and get your tax questions answered from the comfort of your couch. The TurboTax Live CPA or Enrolled Agent can also review, sign, and file your tax return.
- Spend less on debt: If you’ve been struggling to pay off that holiday debt, filing early may certainly offer some relief since the IRS expects to issue nine out of 10 tax refunds within 21 days from accepting your tax return if you e-file with direct deposit. Receiving your tax refund earlier can help you pay down your debt and save about 2 months worth of additional interest.
- Avoid missing valuable tax benefits: People who wait until the last minute to do their taxes tend to rush and may leave out information. One of the most common mistakes tax procrastinators make in a rush is including incorrect social security numbers for themselves, spouses, or dependents. Incorrect social security numbers can cause you to miss out on valuable tax credits and deductions.
- You may get a bigger tax refund than expected: Your everyday life or life changes can lead to some nice tax deductions and credits that can save money on your taxes. Life changes, such as getting married, having a baby, starting your own business, or starting a new job can lead to some huge tax savings that may get you a bigger tax refund.
- More time and money to do what you like: Imagine what it would be like to have more free time since you not only saved time filing online with TurboTax, but you also have some more money in your pocket to enjoy months in advance of the filing deadline. You could get ahead on some bills, put some money away for retirement, and enjoy the additional free time with your family.
Don’t worry about knowing tax laws or forms. TurboTax will ask you simple questions about you and give you the tax deductions and credits you are eligible for based on your answers. You can also connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. A TurboTax Live CPA or Enrolled Agent can also review, sign, and file your tax return.
*A note from DECU: As a TurboTax partner, DECU members could save up to $15 when filing this year. For more information, follow the link on our home page.