Three Big Reasons to Not Wait for The Tax Deadline

Tax Planning

This post can be found en Español here.

The IRS tax filing deadline for the 2016 tax season is Tuesday, April 18, 2017. Many people dread it, but maybe you should embrace it and file as soon as possible! I dare you: try it! There are at least three reasons why you should file your taxes before April, and not wait until the actual deadline. The most obvious? you can simply relax and treat it like any other day. That will eliminate the anxiety that so many other people experience as the deadline approaches.

But here are three more “hands-on” reasons why you should file your taxes before April.

1. To Get Your Tax Refund As Soon As Possible

If you expect to get a tax refund, you should absolutely file your taxes as soon as possible. Last tax season close to 75% of taxpayers received a tax refund of about $2,800.  That’s a big chunk of money to pay down debt or do something you love.

Also, if you have spending plans for your refund, timing could be an issue. For example, let’s say that you decide that you want to travel someplace warm for spring break in April. If you file your tax return in March, you just might have your tax refund back in time for your trip – or at least sometime in early May. That will be right about the time that the credit card bills from your vacation will be rolling in. It’s all about timing!

Naturally, the sooner you file your taxes, the sooner you can expect your tax refund.  The IRS expects to issue nine out of 10 tax refunds within 21 days or less of acceptance when you e-file with direct deposit.

2. You May See a Bigger Tax Refund Than You Think

Everyday life and life changes can lead to some big and often unexpected tax deductions and credits that can give you a big tax refund. Life changes, such as having a baby, can lead to huge tax deductions and credits, such as the dependent exemption of $4,050 for each dependent, child tax credit of $1,000 for each dependent child under 17, or the child and dependent care credit worth up to $1,050 for one child and $2,100 for two or more kids. Even if you are now self-employed, you can deduct business expenses you may have not have known about like start-up costs, travel and car expenses.

3. Avoid Leaving Out Important Information

Taxpayers who rush around at the last minute may forget a form that reports income like a 1099-Misc or a W-2.  Taxpayers who decide to do their taxes in the final hours may also leave out receipts for tax deductible expenses like charitable contributions, job search expenses, and unreimbursed employee expenses.

If you wait until the last minute, you could be forced into extending your tax return if you hit a snag, such as an important, but missing document. File early, and you’ll be giving yourself plenty of time to find the information you need.

There are still a few weeks left before April 18. Take advantage of this time to file your tax return as soon as possible. You have at least three good reasons to do just that, so now its time to stop the procrastinating, grab your forms, and file your taxes with TurboTax. TurboTax asks simple questions about you and gives you the tax deductions and credits you’re eligible for based on your answers.

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