February 09

Benefits Of Starting Taxes Early

Whether you’re an owner-operator, business owner, or an employee, starting your taxes early has significant benefits. While it’s easy to procrastinate filing your taxes, getting it done early is the smart thing to do—and it can spare you a major headache. Below are the benefits of starting your taxes early.

Eliminates The Stress Of The Impending Tax Deadline

The quicker you get your taxes done, the faster you get to stop worrying about it. Every day you wait to file your taxes, you might feel more stressed as the impending tax deadline approaches.

More Time To Make A Plan Rather Than Rush

By starting your taxes early, you will have time to identify all of the tax-deductible business expenses. If you run into any mistakes while filing your taxes, you will have enough time to correct them before the deadline. 

Less Competition To Work With A Tax Expert

Many people don’t begin working with a tax expert until later in the tax season. If you wait until later in the tax season, you will face a situation where you compete with others to get the tax help you need.

No Late Filing Penalties

Don’t fall into a scenario where you meant to get your taxes done on time but weren’t able to because you waited too long. The late filing penalty is 5% of any unpaid tax liability starting April 19th. It continues each month up to a maximum of 25%.

Receive Your Refund Earlier

If you’re eligible for a tax refund, you will get that refund quicker if you start your taxes early. Most owner-operators have a small chance to get money back their taxes. The ones that do get a refund managed their money well throughout the year!

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

SOURCE: ATBS