MILLIONS of Americans will file their taxes in the coming weeks before the April 18 deadline.
This year the IRS begins accept tax returns on January 24, earlier than last year when the portal opened in February.
While the April deadline provides plenty of time for you to get your application back without penalty, you can apply sooner rather than later.
The IRS is also encouraging Tax returns, as they can help speed up refund processing times.
Below, we explain three reasons why you should file your 2021 tax return early.
Get your refund sooner
The IRS typically tries to send a refund within 21 days of receiving an electronic tax return and within six weeks for mail-in returns.
The IRS is also facing 2020 profit backlog needs adjustment, which may contribute to further delays.
If your income changes in 2021, you may not have received your March 2021 stimulus check despite being eligible.
However, you can still get those funds when you file your 2021 tax return.
So the sooner you file your tax return, the sooner you can get that stimulus check.
Filing your tax return early gives you more time to prepare for repayment.
The sooner you file your taxes, the sooner you’ll know how much you may owe the IRS.
But you’re not obligated to return the IRS sooner just because you filed your tax return ahead of time. This deadline is still in April 18.
You can then make a plan to repay the agent ahead of time to avoid fees and penalties.
Also know that if you haven’t maxed out your 2021 IRA contributions, you must do so until April 18. This could lower your tax bill.
Errors on your tax return can slow down your refund, so be sure to double-check your taxes before submitting.
It’s also helpful to ask for the direct deposit option to get your money back.
This can cut the time you spend waiting for paperwork to be checked in half.
We also explain when will W-2 forms be available in 2022.
We pay for your stories!
Do you have a story for the American team The Sun?
https://www.the-sun.com/money/4530272/three-reasons-file-taxes-early/ Three reasons to pay taxes earlier this year