The deadline to file your taxes will arrive sooner than you think. It may feel like a long time from now, but the time to file is as soon as you have your W2’s and all the other paperwork needed. According to the IRS, 20-25% of Americans wait until right before the deadline to prepare their documents and file. By then, they may be looking at extensions, or worse, expensive penalties.
Here are five reasons to get started on your taxes today:
- By the end of February most financial institutions have mailed out their respective tax documents. Gathering all your documents and getting organized now will help you figure out what if anything you need is missing.
- If you plan on preparing your own tax return, getting started early will help you get organized and reduce the stress of the process as well as potential mistakes on your return.
- Tax preparation professionals will become increasingly busy as the deadline approaches. If you wait too long to submit your documents to you tax professional, they may not be able to complete your tax return by the deadline.
- There is a penalty for not filing your taxes by the deadline. This penalty is harsher and different from the penalty for failure-to-pay what you owe by the deadline. You should file taxes on time even if you are unable to pay all the taxes you owe by the due date. If you are due a refund from the IRS, filing last minute only delays when you receive your refund.
- We all have busy lives and long to-do lists. No one needs the extra stress and anxiety associated with uncompleted responsibilities hanging over their heads. Filing your tax return early this year may just make spending Spring Break with your family way more restful!
Does the thought of even finding all the necessary tax documents make you panic? Does the sound of sorting through paperwork and receipts after a long day at work sound like the worst thing ever? What if you haven’t filed any paperwork, ever? Read Part 2 of this Blog – and get help with your tax prep from a professional home organizer.