The Benefits of Filing Your Taxes Early
byMar 10th 2014 6:00AM
By: Becky Frost
While many Americans may strive to file taxes early, the harsh reality is most file right against the deadline. With procrastination, there's usually a flurry of activity to get everything filed on time. If you're usually a late filer, this could be the year that you break with tradition. There are a number of reasons for paying taxes early-especially if you have a balance that is due.
You Get Your Refund Faster
Getting a faster refund is an excellent incentive for filing your taxes. Many people choose to speed up the process by filing an electronic return with direct deposit into their bank account. Filing a paper return may take up to several weeks or more.
You Can Curb the Risk of Identity Theft
Identity theft is a serious concern for many people. Identity thieves don't need more than a few vital pieces of information, such as your social security number or taxpayer identification number, to steal your personal information. They can open new credit card accounts, make ATM transfers and drain your bank account. And by that the time the crime is discovered, the thieves can be long gone.
You Can Reduce Tax-Season Stress
Collecting receipts and records for the IRS can be both stressful and time consuming. Approaching tax time is often "crunch" time for millions of people. The more time you have to prepare for taxes-the fewer mistakes you're likely to make. And filing early can reduce the burden on your tax preparer as well. As the tax deadline approaches each year, tax professionals often scurry to get everyone's taxes filed on time.
You Can Pay Off Debt and Save on Interest Charges
Tax refunds are used for anything from financing cars, or funding a well-deserved vacation, to home repairs or putting money toward your goals. Another idea - paying down credit card debt - allows you to forego additional interest and decrease your credit card utilization rate.
The benefits to your personal finances for filing your taxes early are bountiful! Make this the year that you get out in front of the April tax rush to beat this year's filing deadline.
About Becky Frost: Becky Frost is Senior Manager of Consumer Education for Experian Consumer Services, which offers credit monitoring products like freecreditscore.comTM. Find Becky on Google Plus.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.