Tax preparation isn't exactly something to look forward to in the new year. There are W-2s to get in order, receipts to locate, and expenses to consider. However, while it may be tempting to put this paperwork off until just before the April 15 deadline, there are many benefits of filing ahead of time.

Why Should You Handle Tax Preparation Early?

1. Eliminate Stress

You have until April to file your taxes, and you can also ask for an extension, but the stress that goes along with filling out tax forms only increases as the deadline approaches. Instead of putting your taxes off for the last minute, do them as soon as you can and eliminate the burden of an impending due date.

2. Prevent Identity Theft

An identity thief can try to use your Social Security number on a fake tax return to claim your refund. However, if your taxes have already been filed, the fake return will be rejected. Keep thieves from getting to your return first by submitting your paperwork early.

3. Get Faster Refunds

The earlier you file, the faster your tax return will come back. If you wait until the last minute, it could take several months before your tax form is processed. By filing first, you'll beat the rush.

4. Pay What You Owe

There's a deadline to pay taxes you owe, just like there’s one for filing. If you file your tax return early and owe the IRS, you'll have more time to save up for your payment. Sending in your 1040-form early can also give you additional time to file for an extension.

5. Meet With Your Tax Professional

The closer it gets to April, the busier your tax professional will become. If you have questions, need assistance with forms, or want a tax code clarified, it's best to contact an expert early in the year to get their full attention without competition from other clients.

Stay on top of your tax preparation this season by contacting ZP Tax, Inc. in Silver Spring, MD. From bookkeeping services to financial reports, these accountants provide valuable financial services to individuals and businesses throughout Montgomery County. Learn more about how they can prepare you for tax season online, or call (301) 587-4829 to schedule a meeting.