It’s no secret: Filing your taxes is tedious. But you shouldn’t wait until April to do it. Here’s why:
#1: Reduced Chance of Fraud
If you file your taxes now, you reduce the chances of someone else stealing your social security number and filing them before you. Tax identity fraud is common, and it not only threatens your finances, but also forces you to deal with the Internal Revenue Service (IRS) after the fact.
Remember: Once you submit your tax return, the IRS rejects all subsequent filings.
#2: Time Buffer Provided
Filing in April leaves you with only a few days to correct any tax filing errors. If you’re missing a W-2 form or you incorrectly entered a social security number, you need time to fix the mistake and file a revised return. This is especially important if you become a victim of tax identity fraud.
Paper filings also take the IRS longer to process, so you should give them a couple of weeks before the Tax Day deadline.
#3: More Cash on Hand
The sooner you file your taxes, the sooner you can get a tax refund. This means more money in your pocket to spend, save, invest, and pay off debt.
Why wait until April when you can get extra cash in March?