Tax Preparation. It’s Our Thing.
When’s the right time to start filing your taxes? If you’re expecting a hefty refund, the answer is pretty simple: as soon as you’ve got all the necessary paperwork. If you’re anticipating a big bill, however, waiting until closer to the April 15th deadline may be the right choice. Ultimately it’s a personal decision – but it’s important to know that there are actually some cases where early tax filing or waiting to file until later is ideal.
Early Bird: Early Tax Filing
Most taxpayers will benefit from filing taxes early. Refunds are issued on a first-come, first-serve basis, which means you can expect to receive yours more quickly when you file early. According to the National Society of Accountants (NSA), early birds have gotten their refund in an average of 21 days the past few years. Those filing closer to April 15 waited about 31 days. If you owe taxes, the benefit to filing early is that your payment date can be scheduled anytime on or before April 15, regardless of when you file.
(Fashionably) Late Season Tax Filing
Employers typically send you your tax forms well before the April 15th deadline. However, forms coming from short-term jobs and investment accounts could show up late. If a broker receives financial updates that require a 1099 correction, they may send out the corrected form much later than you might prefer.
How you choose to file your taxes also influences how soon you receive your max refund. When you prepare taxes online with e-filing, the process tends to be speedier, but that doesn’t necessarily mean filling out the forms won’t take time. If you plan to use tax filing software, make sure to read through the benefits offered in each package. Our Premium software, for example, helps users maximize business deductions and offers free, unlimited advice from a tax professional.