5 Reasons Why You Should File Your Taxes Early
When tax season rolls around, seeking out tax return services early is a sound strategy. While preparing taxes certainly isn’t an activity most people look forward to, many taxpayers receive a refund, and that’s exciting. Fortunately, our experts can provide CPA tax preparation that helps you keep more of your money and, in many cases, get more back.
While taxes aren’t actually due until April 15, you can file them as soon as you receive the appropriate documents from your employer.
1. Eliminate Stress
Hiring professional tax return services drastically reduces the stress associated with filing taxes, but timeliness certainly helps too. Whether you’re planning on filing taxes on your own or with the help of a professional, when you file directly affects your personal mindset during this potentially daunting time of the year.
When it comes to difficult-but-necessary things in life, the best approach is to simply get them out of the way. Nobody wants to be dwelling on that looming April deadline and filing early ensures that you don’t have to. It’s so easy to procrastinate taxes until the last minute, but then you end up scrambling to gather documents and find tax return services that are still available during peak times.
After filing early, you can check it off your list — once it’s done, it’s done. If you did make an error, you also have more time to rectify it. To put it simply, filing your taxes early is good for your mental health, and that’s priceless.
2. Increase Your Return
While there’s no reward for filing early, studies have shown that the average early filer receives a higher return — often by $200 or more. There are a few reasons for that phenomenon.
One major reason why early filers tend to get more is because they have access to the best tax return services. During March and April, tax professionals tend to be fully booked. The lack of top accounting talent means that many filers either hire the wrong people or try to handle their taxes on their own. Both are bad decisions.
A good tax professional can drastically increase your return or decrease your burden. Working with the right people makes a huge difference in the outcome of your return, and if you wait too long, you may not be able to find CPA tax preparation experts who can do the job right.
Additionally, filing early gives you more time to seek out relevant deductions that can save you substantial amounts of money. If you try and hire a tax return service late in the game, you may be rushing just to avoid penalties, meaning you won’t be able to take advantage of the many deductions that you may qualify for. More time means more planning, and more planning means more money.
3. Get Your Return Faster
If you file faster, you get paid faster. Many Americans rely on their tax returns to fund major purchases or just to increase their bottom line. If you file in March or April, you’re putting yourself at the end of a very long line. When you file early before the deadline, the IRS has more resources to dedicate, ensuring that you receive your refund as quickly as possible.
When you embrace early tax return services, you also drastically reduce the need to file for an extension which can further push back the date you receive your return. As mid-April approaches, you may realize that you still need more time to gather receipts, seek out relevant deductions, and find a qualified CPA tax preparation expert who’s available.
Another common problem associated with filing extensions is that you may end up owing more than you would have had you filed on time. Say you requested an extension, but you still didn’t pay what you owed by the extension date. Now you’re going to start accruing interest and penalties that can snowball out of control if you’re not careful.
Our tax return services hasten your return while also preventing steep fees associated with overdue debt. We know how to file taxes so that there’s never any confusion or grey area. We analyze your documents to prevent audits and other delays, ensuring that your return arrives as fast as possible.
4. Reduce the Chance of Identity Theft
While it’s relatively rare, tax-related identity theft does happen. If someone obtains your social security number, they may file a tax return under your name and pocket your return. The sooner you file your taxes, the sooner you eliminate that possibility. Most fraudulent tax filing occurs early in tax season, as identity thieves want to get their money fast before anyone releases the issue.
When you look into tax return services early, you also find out about any existing problems early, before they become more difficult to handle.
For example, say someone found your social security number on a bill in your trash and immediately filed a tax return in your name in January. Now it’s April and you’re filing your taxes. You may not find out about the identity theft until May or even later. Now months have passed since the incident, and it’s going to be much harder to seek restitution.
On the other hand, if you had filed your taxes in February, the IRS would have rejected your filing and you would know that something is amiss, and you can take action accordingly. Putting off tax return services for even a month or two gives criminals an extra time to cover their tracks, leaving you to foot the bill.
5. Gain More Time to Pay Taxes
While CPA tax preparation can drastically alleviate your financial burden, you may still end up owing taxes, especially if you’re self-employed. When you file early, you have that extra time to start putting money aside. You can form a plan that allows you to pay what you owe comfortably, rather than diving into your rainy day fund at the last minute.
When you know that you owe money, it’s so tempting to put it off until the last minute. After all, nobody wants to deal with a large amount of debt. While it may not be fun, looking into tax return services as quickly as possible helps you to stay on top of your financial situation.
Additionally, if you’re already behind on your taxes, filing early gives you time to work with the IRS to come up with a payment plan that works with your budget. While the IRS has a reputation for firmness, they can be surprisingly accommodating, as long you meet them halfway. Filing early shows good faith. It shows that you’re not trying to avoid your taxes.
Hire Qualified Tax Professionals
Now is the time to start looking into tax return services. Our experienced team is ready and able to help you get your taxes submitted early so you can enjoy these benefits. Even if you’re not extremely wealthy, CPA tax preparation can go a long way in increasing your return or reducing your tax burden, and it makes your life much easier in general.
So, why choose Shahen Derderian & Associates? We give you all the experience, knowledge, and technical expertise you’d expect from a major firm, but we also deliver a level of personal service that you just can’t get from larger firms. We value our clients and approach each individual on a case-by-case basis. Our approach to tax return services gives you the best of both worlds.
We also serve a broad range of clients, giving our team a vast scope of knowledge and experience. This allows us to cater our approach to your unique financial situation. Whether you’re a freelancer, an athlete, a musician, or a high net worth individual, we have intricate knowledge of many industries, ensuring that you get optimal results.
Don’t wait until April. Our team is standing by to deliver dependable tax return services that save you money. Contact us now, and we’ll be happy to provide further information pertaining to your needs. Stay on top of your taxes so you can focus on earning money and increasing your bottom line. Partner with the CPA tax preparation that informed Los Angeles residents trust.