Tax season is one of the top stressors in life. When faced with the annual tax filing season, the two biggest questions arise, “how much money do I owe to the IRS?”, or “how much money will I get back from the IRS?”. Getting an answer early helps reduce stress, a worthy goal. AB Financial Group recommends early filing for 2021. Here are the top 4 reasons:
1. File Early, Take the Stress Out
Filing federal and state taxes early in 2021 will take the stress out of the annual tax season. Getting it done early has several benefits. Early tax filer benefits include:
- No last minute scramble for the necessary paperwork
- Ample time to prevent the possibility of missing important factors
- Eliminating the stress of procrastination
- No overwhelming pressure of last minute filing
- More time to focus on enjoyable tasks
2. Get a Larger Refund
A study of IRS filing data shows that early filing refunds are on average $400 higher than filings that are later in the tax season. This likely reflects the benefit of having plenty of time to include all possible credits and deductions. When a taxpayer has ample time, they are more likely to compile a comprehensive financial picture of the previous year, and take advantage of every possible deduction and credit. Plus, filing early puts your hard earned money back in your hands. For those who owe, there is more time to budget for the pending tax payments.
3. Avoid Tax Extensions
Tax extensions are good for the government, and bad for the taxpayer. When a filer is owed a refund, a tax extension lengthens the time interest free money is available for the government’s use. When a taxpayer owes taxes, the government wins via the penalties that are applied for any payment received after the 2021 deadline. Filing early in the tax season will eliminate the need to file for an extension, and prevent any addition to the 2021 tax liability. It is a money saving strategy.
4. Avoid Tax Identity Theft
Given the frequency of major data hacks within business, industry and government, the vulnerability of an individual’s social security number (SSN) is a possibility. This crime can further result in the theft of any owed federal tax return amount. If a thief files a return under a stolen social security number, the refund can be routed to them. Once a return has been filed, even erroneously, any further filing will be rejected. Solving this is a lengthy troublesome process.
As a precaution, file early. Early filing will eliminate any potential identity thief hijacking your tax refund dollars. Plan ahead. Set up a personal deadline ahead of the thieves.
File Early and receive a 30% Discount from AB Financial Group
AB Financial Group — your trusted tax professionals — are in the perfect position to help you file early for 2021. In addition AB Financial is offering a 30% discount for clients using our filing services before March 31, 2021. Remove the stress out of the process, and reap the benefits of early filing with AB Financial Group by contacting us today at: 970-444-5586.