Benefits of Filing Taxes Early

Every year, ~30% of Americans wait until the last minute to file their taxes. Procrastinating can lead to added pressure and mistakes that can have serious consequences impacting our financial health. Filing taxes early has several benefits that can help you save time, money and reduce stress.

6 reasons to file your taxes early:

1. Get your refund faster. One of the biggest advantages of filing your taxes early is that you can receive your tax refund more quickly. If you are owed a refund, filing early means you can receive it within a few weeks rather than waiting for several months. This helps you put that money to work right away—whether that means paying down debt, catching up on bills or building financial slack.
2. Avoid last-minute errors. Filing your taxes early gives you plenty of time to double-check your tax forms and make sure everything is correct. Starting early also gives you time to track down any missing documents. This can help you avoid mistakes that could delay your refund or result in penalties.
3. Have more time to pay. Filing early doesn’t mean you have to pay early. You still have until the filing deadline to make your payment, but you’ll know what you owe sooner. This can help you avoid having to pay a large sum all at once and gives you time to plan, save or adjust your spending plan.
4. Avoid the rush. Filing your taxes early means you can avoid the last-minute rush to file on the deadline. This can save you time and stress and can also make it easier to get help from tax professionals or tax software if you need it. Filing ahead of the deadline reduces mental stress and gives you a sense of relief knowing this annual task is behind you.
5. You’ll have time to plan. Filing early can help you gather key financial information needed for bigger decisions, such as applying for financial aid, buying a home or exploring payment options if you owe taxes.
6. Prevent tax identity fraud. While not guaranteed, filing early can reduce the risk of someone else attempting to file a fraudulent return in your name. When your return is already on file, it’s harder for a scammer to submit a fake one.

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While Credit Human is not a tax advisory service, we’re committed to helping you reduce stress wherever possible. Visit your nearest Financial Health Center for personalized guidance to help you navigate challenges, manage expenses and build the financial slack you need to reduce stress year-round.