So the new year is approaching fast and tax day will follow after. Tax season is still months away, so no need to worry yourself with going through your financials and filing early, right? Sure, you’re free to do your taxes at your own pace, but starting the new year while keeping your finances in mind does have its benefits when it comes to your taxes. Aside from forgoing the hassle and stress of getting in under the wire, early filing can help you financially as well.
Money in Your Pocket
First and foremost, an early file means faster money. Income tax returns are not time gated and, if you qualify, you are entitled to your return shortly after you officially file. You can speed up the process by e-filing and opting for a direct deposit into your bank account, as paper correspondence takes a little longer. That said, getting in early means you could get your money faster when you might need it more.
If you owe a balance to the IRS, filing early gives you more time to arrange your proper payment. If you file in January and still owe a balance, then you will have until the mid-April deadline to arrange payment. It also gives you a head start on finding out exactly how much you owe and how you can go about paying it. Like the saying goes, “time is money”.
Lastly, filing early gives you a head start in preparing for large life changes like moving or going to college. Parents who are enrolling their kids in school and are looking for financial aid will need a completed tax return as a part of the application process.
Couples looking to buy a new home or their first one also need a completed tax return when buying and applying for loans as proof of their household income. Bottom line, if you know a big change is coming, quickly getting your taxes in order is always beneficial.
Don’t Wait Any Longer
At Gonzalez & Arrambide, we’re here to help you every step of the way. Whether you want to file early or get in under the wire, we’re here to make sure you get the most out of your return. If you would like to learn more about how we help with your taxes, let us know online or give us a call at 956.447.9009.