January 22

Benefits of Starting Taxes Early

Whether you’re a sole proprietor, company owner, or employee, beginning your tax preparations early offers several advantages. Delaying tax filing is common, but addressing it promptly is wise and can help avoid significant frustration. Here are the key benefits of starting taxes early:

Reduces Stress as Tax Deadline Looms

Completing your taxes quickly lessens the worry associated with it. The longer you delay, the more the stress builds as the tax deadline nears.

Provides Ample Time for Planning

Initiating tax preparations early allows you to thoroughly identify all tax-deductible business expenses. If errors occur, there’s ample time to rectify them before the deadline.

Easier Access to Tax Professionals

As tax season progresses, more people seek the services of tax professionals, making them busier. Starting early means less competition and easier access to the tax assistance you need.

Avoids Penalties for Late Filing

Procrastination can lead to missing the tax deadline, resulting in late filing penalties. These penalties start at 5% of the unpaid tax from April 19th and can accumulate up to 25%.

Faster Tax Refund Receipt

The benefits of starting your taxes early, especially for those eligible for refunds, mean receiving the refund sooner. Owner-operators who manage their finances well throughout the year often see refunds.

Bottom line: be prepared for and do your taxes early.