Did you know almost 75% of taxpayers get an income tax refund each year? With the average refund closing in on $3,000, we can’t think of any reason to delay filing your taxes.
While it’s awesome to have more cash in your pocket, it’s not the only benefit of early filing. Here are a few more reasons to get your tax act together early in tax season.
Early filers average larger refunds.
Taxpayer surveys show that people who file by the end of February get larger refunds than those who file later—usually about $120 more! Every little bit counts, right?
Obviously if you know you’re getting a refund, you’re more likely to file sooner. That probably explains some of the larger refunds, but it’s not the only reason.
Refusing to put things off also gives you more time to identify all the deductions you’re eligible for. Studies show that while many of us could get a larger refund by itemizing our tax return, we usually opt for the standard deduction. It’s faster and simpler, sure. But that shortcut costs taxpayers $1 billion each year. Ouch.
Don’t set yourself up to have to cut corners to meet the filing deadline. It’ll end up stressing you out. And, if we’re being really honest, it doesn’t make us great stewards of God’s resources. Get started early and get the job done right. You won’t regret it.
Early filers simply have less stress.
When we have to face an unpleasant task, it’s best to get it out of the way as soon as possible. Income taxes are no different. We have to fill out the forms and file, so we may as well grit our teeth and get it over with.
Here’s a tip: Give yourself a fake deadline to get your taxes done. Schedule it well ahead of the official April 15 deadline. Once your taxes are finished and filed, give yourself a small reward for knocking them out early. Everyone else might be stressed from now until April—but not you! Now you can focus on more important things, like hitting your goals or spending quality time with your family.
Early filers have more access to professional tax advice.
Procrastination and taxes are a bad combination—especially when you want to work with a tax pro. Their schedules fill up fast. If you haven’t scheduled an appointment with them by mid-March, you’ll probably have to file an extension.
Plus, most tax professionals charge more as the filing deadline approaches. What’s the best way to avoid that? Get an appointment with your advisor as soon as possible. It’ll save you time, money and stress. Amen to that!
There you have it. If you're going to have to file taxes—and you're going to have to file taxes—you might as well get all the perks of filing early. So knock out the paperwork and put your money to work!
This article originally appeared on daveramsey.com.