Due to the Coronavirus pandemic, the federal tax deadline has been pushed back from April 15th, to July 15th. While it was already easy to procrastinate when filing your taxes, there are many benefits to filing your taxes ahead of the deadline. Additionally, if you’re filing for your small business, the state of Maryland has extended the due date for the MD sales tax and MD withholding tax. These taxes which are normally due in March, April, and May, can be paid by June 1st. Now that the tax deadlines have been extended, you have more of a chance to benefit from filing early. Read on for the six significant reasons you should file your taxes early.
You Will Receive Your Tax Refund Faster
If you receive a tax refund, this can be a significant boost to your finances. The sooner you file your taxes, the sooner you will receive your refund.
You Have More Time to Pay Taxes
If you end up owing money on your tax return, you don’t want to find out in July when you only have a few days left to pay that bill. On the other hand, if you file your taxes early, you could have much more time to arrange the payment of your tax bill. You may also set up a payment plan with the IRS if you aren’t able to pay by July 15th. No matter what, filing early gives you more time and options for paying your tax bill.
You Can Take Advantage of Tax Breaks
If you rush to file your taxes at the last minute, you may miss out on potential benefits. If you take your time and file your taxes early, you have the chance to find every credit and deduction for which you qualify. Filing early means you have time to be patient and thorough in making sure you get your maximum refund.
You Can Find the Best Filing Option
Filing at the last minute also means that you may have to choose the first tax prep option available to you. However, if you have more time, you can select the best software or perhaps an accountant to help you file taxes. The professionals at the Harding Group are on-hand to consult with you about your tax return and help you earn your best refund. Additionally, the Harding Group files for an automatic 6-month extension for any returns we prepare, so we have until October 15th to make your return the best it can be.
You Can Experience Other Financial Benefits
Getting your refund sooner can help you in other financial areas of your life. For instance, if you use it to pay off a debt, you may end up owing less interest by paying your debt sooner. You could also put your refund towards down payments on a house, a car, or a vacation. Deciding to file your taxes early means that you will have a tax refund sooner with which you can use towards other expenses in your life.
You Can Protect Your Info and Refund from Identity Thieves
If an identity thief gets your Social Security number, they could use it to file a fraudulent tax return. However, if you file early, you are less likely to experience this. While you can often get your identity theft resolved, it can take a while to receive your appropriate refund.
Taxes are due by July 15th, but if you need more time, you must file an extension on or before the 15th. If you have all of your required documents and information ready now, we highly suggest filing your taxes early to reap the benefits of an early tax return.
trust the professionals at the harding group
Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for emails or phone calls and will strive for open communication with our clients. Whether you are interested in business advising, tax preparation, bookkeeping and accounting, payroll services, Training + support for QuickBooks, or retirement planning, we have the expertise and years of experience to help. We serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of taxes, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on Facebook, Twitter, YouTube, and LinkedIn.