Why You Should File Your Taxes Early

January may just be the first month of the year to think about paying your federal income tax but it pays off later on if you will consider paying your taxes on this month rather than wait until the April deadline. If you are particularly concerned about getting your income tax return early, then you should consider paying your taxes early as well. Aside from this, here are some more reason to file your income tax early.

1. You Will Be More Prepared

You will have more time to know new rules and apply them during filing. You don’t have time to review rules when it comes to your taxes in any other days so by filling early, you will have more time to study it. If you will do your paperwork early, you or your accountant will have more time to determine if any changes will affect the computation and you can make the necessary adjustment to it. If you ignore applying these new rules, it might spell trouble later on so do your homework first before you submit Form 1040, or any other form.

2. You Will Be Less Likely To Be A Victim Of Tax Fraud

The Federal Trade Commission says that tax identity theft is becoming more rampant on the busiest part of the tax season which is during April. Tax lawyer, Lawrence Brown, has often suggested that if you can, you should submit your tax forms early. The more taxpayers are becoming eager to pay their taxes before the deadline the more that they tend to ignore some small security aspects of it. This is when scammers are given the chance to sneak on someone else’s personal information and then pocketing their refund. The National Consumer League believes that the best way to combat these scammers is by filling Form 1040 early because you and the IRS have ample time to monitor and guard your application process.

3. You Might Get Your Refund Faster

The IRS is keen to issue more than nine out of ten refunds in less than 21 days after receiving the returns. In 2015, 73% of taxpayers have issued money back, amounting to a total of $2,857. If you are one of those who is expecting a tax refund, why not try to get it sooner than later. You can use the refund to pay for other dues or to finance a business goal.

4. Financial Aid

A document showing the completion of filling for tax return can help in getting financial aid. College students can use the information in Form 1040 to apply for a student loan. On the other hand, prospective homebuyers can use the form as a proof of their household income.