For most people, tax preparation is something they’d rather not think about. After all, giving money to the government after working so hard for the entire year is a tough pill to swallow. While it may be tempting to wait to file your taxes until the April deadline, it’s not the only option. In fact, you can file as early as late January. Here are a few reasons to consider filing your tax return early instead of submitting them on April 15.

3 Reasons to Start Tax Preparation Early

1. Gives You Time to Pay Off the Balance

It’s not uncommon to owe the IRS money, even after taxes were deducted from paychecks throughout the year. If you wait until the deadline to file the return, you’re expected to pay the remaining balance in full if you wish to avoid a penalty or interest charges. By filing a return early, you’ll know exactly how much you owe the IRS and can start paying that balance off before it’s due on tax day.

2. Faster Refunds

The earlier you file, the fewer returns the IRS has to process. As the season progresses, more returns are filed and the backlog at the IRS builds. This results in longer wait times for tax refunds. When you file early, the IRS will be able to process the return more quickly and issue a refund promptly. This means you’ll get the money back in as little as 21 days after filing the return. If you wait until peak tax season, it could take up to eight weeks for the money to make it to the bank account.

3. Gives You More Time to Get Documents Together

The IRS does grant extensions on tax preparation, but it often results in penalties and fees. By starting your taxes early, you’ll have more time to track down any potentially missing statements, documents, and necessary information long before the deadline. This will help you avoid having to file an extension and gives you more time to get everything organized with an accountant.

Want to get ahead on your taxes, but don’t know where to start? Contact the experienced accounting team at Simplified Tax in Sparta, WI. They’ll help you with everything from tax preparation to maximizing your deductions, so you’ll get the largest return possible. Visit their website to learn more about their services and call (608) 269-2633 to schedule a consultation.