Tax season has begun and if your tax documents aren’t available yet, they will be soon! File ASAP to avoid these additional stressors.
When it comes to filing taxes, it’s easy to procrastinate. It may feel like compiling paperwork and stressing about whether you’re going to get a refund is an activity best saved for a later date.
The problem is waiting comes with consequences. Not only do you become vulnerable to security risks, but you can also incur unnecessary fees as well. Paying additional costs if you already owe money to Uncle Sam is like adding salt to your financial wounds.
Take action now to avoid these additional stressors during tax season.
Reasons To File Your Taxes ASAP
Reduce Risk Of Identity Theft
Unfortunately, tax identity theft is a real thing. It works like this: scammers access your personal information, file your tax return before you do, and happily claim a refund on your behalf.
Typically, most employers provide you with all necessary tax paperwork by the end of January. The best way to protect yourself against tax theft? File as soon as possible. File now to raise the odds of keeping thieves away from your hard-earned return or from having to take corrective action.
Avoid Late Fees
That April 15th deadline? It’s serious. To ensure people file on time, the IRS can hit you with a financial penalty. If you do file but don’t have the cash to pay what you owe, you can incur a fee for that as well. However, the IRS offers payment plans for people who can’t afford to repay at the time of filing. Visit the IRS website for details.
Save On Tax Prep Services
Many people use tax software to help them prepare their taxes. It’s relatively simple and in some cases cheaper than hiring an accountant. But don’t forget that the software companies are businesses; although they want to make filing easier, they also want to make a buck. Tax software typically gets more expensive as the tax deadline approaches. Don’t be surprised to see prices start to rise 30 days out.
Bottom line? To avoid security risk, extra costs, and anxiety of a last-minute filing, finish your taxes as soon as possible.