The Early Tax Bird
The benefits of filing taxes early
You probably don’t want to start thinking about taxes just yet. After all, the deadline is in April, and if you request an extension, you can wait to file well into autumn. However, there are some benefits to filing your taxes early. Let’s review them below.
If you wait until March or April to file your taxes, there’s a good chance you’ll be feeling rushed. That sense of a looming deadline can lead to filing mistakes. Instead of waiting until the last minute, take your time to go through your documents. Do this and you might even end up with a bigger refund, as you could miss something if you’re in hurry.
If you’ve got big plans attached to that tax refund (hopefully it involves saving) the earlier you file, the earlier you’ll get paid. If you plan on investing your refund you’re also giving it more time to grow.
On the flipside of getting an early refund, filing early will allow you to plan out how to pay the IRS if you owe them. No matter when you file, the payment isn’t due until April 15. Filing early will give you some time to budget in that payment.
Avoid The Scams
Finally, scam artists love tax return season. As USNews reports, they use stolen Social Security numbers to file fake tax returns in the hopes of receiving a refund. If a scammer uses your number and the IRS misses it, when you do finally file your actual return, the IRS will likely reject it. That can lead to a long process of sorting everything out with the IRS. And don’t forget, you now have identity theft to deal with. If you file early, there’s less time for scammers to steal and use your information.
Who is FIBT?
First International Bank & Trust (FIBT) is a full-service, family-owned, independent community bank serving a wide range of communities across North Dakota, South Dakota, Minnesota, and Arizona.