Filing your taxes can be a bit of a headache each year. While many people may have good intentions of filing as soon as they get their W-2s, people often procrastinate. Then, before they know it, the deadline sneaks up and forces them to reorganize their schedule to make time to file, causing a great deal of unnecessary stress.
If that scenario sounds familiar, it’s time to file taxes early. Doing so will not only relieve your stress and anxiety, but there are many other benefits you’ll experience.
Benefits When You File Taxes Early
- Eliminate the stress of the deadline. The pressure of filing taxes before the deadline can be overwhelming, especially if you wait too long. File early to ease your mind. Waiting until the deadline might force you to file an extension, causing even more stress and anxiety.
- Get your refund sooner. Filing early ensures a quicker tax refund, especially if you file electronically and request direct deposit. Use your refund to pay debts, travel, or boost savings.
- Have more time to pay. Filing early doesn’t mean paying your taxes early. It gives you more time to save for your owed balance. This extra time helps avoid using emergency funds or being unprepared for tax burdens.
- Enjoy quicker processing. Tax preparers are less busy early in the season. Waiting until the last minute may require filing an extension.
- Realize fewer errors. Filing earlier allows time to organize documents, ensuring maximum refunds and avoiding errors, missed deductions, or audits.
- Prevent identity theft. Fraudsters often file taxes using stolen identities. Filing early reduces the chances of someone filing a return in your name.
- Jumpstart other financial activities. Major financial decisions like buying a home often require tax documents. Filing early makes the process quicker and easier.
Finally, it’s important to note that employers must send W-2s out by January 31st. Although most businesses will send tax documents before this date, it’s best to wait until early February to ensure you receive all the necessary documents before you file. However, once you’re confident you have all the documents, file as soon as possible to reap the most benefits.
We’re Here to Help!
While filing your taxes may not be on your list of fun things to do, the benefits you enjoy when you file taxes early can add up. Be sure to set up direct deposit for your taxes into your credit union account to receive your refund quicker. Then, once you receive your return, it’s always a good idea to earmark a certain amount for your emergency fund and to pay down existing debts.
If you would like to open a savings account for your emergency fund, we’re here to help. Please stop by any of our convenient branch locations or call 1-800-531-8456 today.
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Each individual’s financial situation is unique. We encourage you to contact United Texas Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.