Five Reasons to Submit Your Tax Return Early

Happy February everyone! Many of you may be gearing up for a romantic Valentine’s Day dinner or hoping the warm spring weather will come quickly. As you jump into the season of hearts and chocolate, you may also want to consider gathering the necessary materials to prepare your tax return.

You may think April 15 is a long way off, but there are plenty of good reasons to prepare your tax return early. For one, the earlier you file your return, the earlier you receive your refund. A majority of e-filers with direct deposit receive their refund within 21 days of submitting their return; however, refunds are issued on a first-come, first-serve basis, so make sure to beat the March and April rush.

Filing early will also give you more time to grapple with the new required documents. Starting this year, the Affordable Care Act requires you account for your healthcare plans on your tax returns, and doing so often necessitates submitting a form 1095 or a form 8962. Rather than scrambling to learn about and collect these documents at the last minute, take time to research and organize these documents right now. If you have any questions about these new forms, or about other changes to the tax law this season, please do not hesitate to contact us.

Along those same lines, the earlier you file, the earlier you know if and/or how much you owe the IRS. Because you aren’t required to pay the Balance Due on your return until mid-April, filing now will give you a few months to prepare to pay off unexpected costs.

Finally, an unexpected perk of filing early is the possibility of thwarting tax identity thieves. Using your date of birth and social security number, defrauders can file a return in your name and thus claim your refund. If you file earlier in the season, you could beat the defrauders to the punch or more quickly uncover existing tax fraud. This could save time, energy, and money required to sort out these difficult situations.

Of course, bringing in your tax return earlier also helps the ELM3 team during our busiest season of the year. Regardless, we will be assisting you throughout the process in order to answer your questions and keep a smile on your face.