CWF Found Millions in Tax Refunds Last Year. Can We Find a Refund for You?
It’s tax time again! And if the thought of doing your taxes fills you with dread, you’re not alone. The annual ritual can strike fear in even the calmest among us. Taxes are complicated and confusing. With more than 800 forms and schedules from the Internal Revenue Service (IRS), it’s no wonder we procrastinate and end up filing our taxes at the last minute. But here are seven good reasons to file early.
1. You’ll Get Your Refund Sooner
Topping the list, of course, is the fact that the sooner you file, the quicker your refund will be in your hands. Makes sense. That alone should motivate you to take action sooner rather than later.
Getting your refund sooner has financial advantages — if you use it to pay off debt, you may end up owing less in interest if you can pay off your debt sooner. If you’re planning to make a purchase, you’ll be able to buy that important something sooner.
Even though most taxes are due by April 15, 2021, you can e-file (electronically file) your taxes earlier. The IRS will begin accepting electronic returns in February. Filing your return electronically with direct deposit into your bank account is the fastest way to get your refund. It can take up to several weeks longer for mailed returns, so it is always better to e-file a return if you want to receive your refund quickly.
But if for some reason, the idea of filing early doesn’t help you race to have one of CWF’s IRS-certified tax professionals get to work for you today, we have 6 more reasons why it makes sense to file as early as possible.
2. You May Get a Larger Refund
People who file their taxes by late February tend to get larger refunds than people who file later—about $400 more on average! This may be because the sooner you get started on your tax return, the more time you have to make sure you’re claiming all the tax deductions and credits you’re eligible to receive (see #3).
3. You Can Take Advantage of Every Tax Break & Get Every Credit You Deserve
There’s nothing like waiting until the last minute and rushing only to find you’ve made mistakes or left something out. If you are rushing to file at the last minute, you might miss the benefits you are owed. The skilled and experienced professionals at CWF can help make sure you take full advantage of any tax credit or tax deductions.
4. It Can Help Protect You from Identity Theft
The longer you wait to file your taxes, the more susceptible you are to identity tax refund fraud. We don’t mean to scare you, but it happens more often than you might think. According to the Government Accountability Office (GAO), the IRS estimated that online tax fraudsters tried to steal at least $12.2 billion through identity theft tax refund fraud in 2016.
Luckily the IRS was able to thwart most robbery attempts, but $1.6 billion still ended up in the hands of these thieves.
Filing early may not eliminate the threat of identity theft, but it can protect your refund. If thieves file a return using your social security number before you do, the IRS will kick out your return because their records show you’ve already been paid. It can take months to clear up the mess with the IRS and finally receive your refund.
5. There’s Less Competition for Tax Professionals
If you wait until crunch time — when everyone and their brother is scrambling to get their taxes done — it can be more challenging to schedule time with a tax professional. The best way to avoid all that hassle is to get an appointment with your advisor as soon as possible.
CWF Virtual Tax Prep makes it easy and safe to have your taxes done professionally . . . without leaving the comfort of home! You still have to get your information together, but all you have to do is pick up your phone or log on to your computer to securely upload your information, and we take it from there!
6. If You Have a Tax Bill, it Gives You Time to Make a Plan
It’s easy to understand the urge to put off filing as long as possible if you owe money. But if you fill out your tax forms and file them, you’ll know exactly how much you have to pay—and you won’t have to pay in full until the final filing deadline (which is April 15 in a normal year). That will give you more time to save the money you need.
You can save time and reduce hassle by gathering the right paperwork the first time around. Not sure what you’ll need to have in hand to file your taxes? Download your free tax preparation checklist.
Early filing may help eliminate the need to file an extension. If you file an extension but don’t pay what you owe if you have a balance due, the IRS will charge you interest and penalties on the outstanding tax debt until it is paid in full. And no one wants to have to pay more than they owe to the IRS!
7. It Eliminates Tax Deadline Stress
“I want more stress in my life,” said no one ever! Facing the taxman can be stressful. No shocker there! Any time you face an unpleasant task, it’s best to get it out of the way as soon as possible. Income taxes are no different. So, gather your information and put it in the capable hands of our IRS-certified tax professionals.
In Summary: There are valuable benefits to filing your taxes early, and CWF can help!
We understand the temptation to put off doing your taxes until the last minute. As you can see, there are good reasons to become an early bird when it comes to filing your taxes.
Preparing your taxes can be confusing and complicated, but working families and individuals in Southeastern Pennsylvania and Southern New Jersey earning less than $57,00 per year can get free, professional help from CWF. Get your full tax refund and file with us!