Introduction

There is nothing wrong with submitting your taxes early. Getting a jump on federal tax filing may be more advantageous than most individuals think. Regarding the tax extension, if you meet the IRS tax return, initial or extended tax deadline, it doesn’t matter how early you submit your federal tax return. 

Every year, many individuals put off filing their federal income tax forms until the last minute. Despite this trend, there are several reasons to submit your taxes as soon as possible. 

If you are receiving a refund, you should submit your return as quickly as possible.Even though it’s unnecessary, it’s nearly always better to submit your taxes early. 

Let’s understand why!

What Exactly Is An IRS Tax Return?

An IRS tax return is a document submitted with the IRS that details an individual’s or company’s income, spending, and other financial information. The goal of offering a tax return is to figure out how much tax a person or business owes.

With almost 75% of filers getting an average income tax return of $3,039, there’s no excuse to put off completing your taxes. Even if you owe money, income tax filing early is advantageous (as we’ll explain later).

5 Reasons to Start Planning Your Taxes Now! 

Here are five reasons why you should start planning your taxes now.

1. Those Who Submit Early Avoid Processing Delays.

Last year, the IRS tax return was dealing with a trash fire. At the end of May 2022, the agency still had 21.3 million unprocessed paper tax returns, a 1.3 million increase over the previous year.

Millions of Americans waited months for their tax refunds. Much of this was due to the physical flood of papers that the IRS had to go through.

What is their solution? You must file taxes early and select a direct deposit to get your yearly return filed. Additionally, double-check your forms and information. If you do, your tax refund if any will not be delayed. If you do it in a rush or do it incorrectly, your tax filers avoid the burden of tax deadlines.

2. Early Filers Get Higher Returns On Average.

Listen up: a tax refund is not free money. Getting a huge IRS refund means you’ve been giving Uncle Sam your money (without interest) all year. He’s only returning what you already have!

If you get a refund over a few hundred dollars, you will likely need to engage with your human resources department to alter your tax withholdings on your W-4 form. When those bigger paychecks arrive in your bank account, you’ll feel like you received a raise! The idea is to minimize your tax refund while increasing your take-home income.

That said, if the government owes you money this year, you’ll want to make sure you collect every dollar you’re owed—and income tax return filing early may help you accomplish that. 

According to IRS statistics, taxpayers who submit before the end of February get much earlier refunds than those who file taxes later — around $400 on average in refunds is processed sooner by the IRS.

3. Early Filers May Safeguard Their Returns Against Identity Thieves.

There you are, feeling good about finishing your IRS tax return, and then you click submit… and bang! Rejected. What occurred just now? 

Someone has already filed a tax return using your Social Security number, and your heart sinks into your stomach as you realize you’re currently a victim of tax refund fraud.

And that occurs more often than you may expect. Between 2015 and 2019, the IRS prevented online tax fraudsters from stealing $26 billion in tax refund fraud via identity theft. While the IRS was able to foil most of the robberies, billions of dollars nevertheless wound up in the hands of the perpetrators.

Filing early may not eliminate the potential of identity theft, but it may safeguard your tax return. If criminals submit a return using your Social Security number before you, the IRS will reject it since their records indicate you were previously paid. 

4. Early Filers Who Have A Tax Obligation Have Time To Prepare.

When expecting a tax bill rather than an income tax refund , it’s natural to put off filing as long as possible. However, if you complete and submit your tax forms, you’ll know precisely how much you have to pay—and you won’t have to pay in full until Tax Day.

Furthermore, the more time you have to come up with the funds, the less likely you will go over budget or deplete your emergency fund. So don’t bury your head in the sand for the first year’s first-half facts on how much you owe, devise a strategy, and get that tax bill out of the way.

5. Early Filers Can Stay Stress-Free

A TaxSlayer poll found that most taxpayers (61%) find tax season stressful.

According to the report, 16% would rather undergo a root canal than submit taxes. Whoa! That is some major tax resentment.

When you have a large, unpleasant assignment, it is important to do it as quickly as possible. Constantly contemplating and fretting about something is often worse than doing it. Income taxes are no exception. You must fill out the documents and file taxes online, so grit your teeth (assuming you haven’t just had a root canal) and get it done.

To help you do your taxes on time, set an artificial deadline well ahead of Tax Day. And after you’ve filed your return, congratulate yourself for being efficient and responsible. See a movie. Go for steak and ice cream (if your budget allows it). You deserve it! Then unwind while everyone else is concerned about doing their taxes on time.

Bottom Line

While the IRS tax return is making greater progress than last year, it still has a backlog of past year tax returns that need to be processed. Most of those awaiting processing paper-filed amended tax returns, make e-filing your return this year even more critical if you want to get your refund on schedule.

If your taxes are more difficult, a tax professional from GJM & Co. can confidently assist you in the income tax return filing. Our accountants and professionals will walk you through every step of tax filing and do it for you as well! 

Should you have any queries or need consultation, Schedule a Call today or write to us at info@gjmco.in.