They say an early bird catches the worm and taxes are no exception to this adage. The IRS statistics show that an average of four taxpayers receives refunds of up to $2,800 annually. I can’t ascertain whether this is due to an early filing, but what I am certain about is the preparation put into it.
Anyone keen on reaping big when it comes to taxes must be strategic in one way or another. In this post are a few reasons why you should get your tax act together throughout the year.
1. No Last Minute Rush
There’s a likelihood of something going wrong with anything you rush to finish at the last minute. With tax procedures, anything and everything could go wrong starting from wrong calculations by your CPA or bookkeeper to missing out on submission deadlines.
As a general rule, ensure all transactions are taken care of as soon as the window period for their handling opens. This will ensure you stay on top of the deadlines.
2. Less Competition in Accessing Tax Professionals
Statistics for the 2017 tax season show that by mid-March, approximately 78 million taxpayers had managed to file their taxes—leaving another 68 million with one month to the deadline. As much as the rush may be an opportunity for professionals to inflate their service rates, a proper one-on-one approach to each client’s needs is more satisfying than rushing through to cash in as many clients as possible.
Besides if you’ve been there, you probably realized how hard it always is to get a hold of a qualified tax consultant due to the workload. In fact, most of the time if you haven’t made your booking by March, you’re likely to file for an extension.
3.Preparing your Financial Information
If you’re going to need your updated financial records in the near future to apply for financing such as college tuition, mortgage financing or a business loan—then it might be prudent to keep your tax status up to date throughout the year. Rushing to get all the necessary documentation relating to taxes could be almost impossible if you’re going to be faced by strict deadlines for certain applications.
Prospective home buyers have to produce their filed returns as proof of income while college students are required to fill form 1040 when applying for financial aid. Whether you owe money or expect a refund, early tax preparations make the paperwork for such processes much easier.
4. Faster Tax Refunds and Paying what You Owe
One of the core reasons for preparing for taxes all year round is so you can receive your refund early enough. The refund can be made faster by filing your taxes electronically and with direct deposit into your bank account. It could take a couple of weeks longer for paper returns.
On the other hand, when it comes to paying what you owe to IRS, early submissions could give you enough time to the mid-April deadline. The best time would be to submit your returns by mid-January and start arranging for payments.
In conclusion, the most important point to note is that most pros will hike their rates during the period of a time crunch. The best way to go about this is to start preparing for your taxes well in advance.
Led by a team of qualified and well-experienced professionals, PKJ Consulting takes pride in making your life easier when it comes to taxes. It’s time to take a step back and let the experts do the heavy lifting for you.
Feel free to reach PKJ Consulting for a customized experience through Email: firstname.lastname@example.org or Phone: (702) 420-2408.