3 Tips to Prepare You for Tax Season
It’s time to file your taxes. While there is time to get it done, why not rip the band-aid off and get it done sooner than later? By law, states are required to send you your tax documents by January 31. So why wait? Here are some tips to help you prepare and insights into why filing early can help you get your return faster.
1. File Early
At the beginning of tax season, tax professionals and the IRS (Internal Revenue Service) are not as busy. If you’ve decided to hire someone to help you with your filing instead of doing it electronically, the sooner you contact them the better. Their calendar is probably not as crammed, leaving you less stressed about booking an appointment. This also is true for the IRS. The longer you wait to file, the busier the IRS gets, which will delay your return.
2. File Electronically
Filing electronically will help you get your return faster than if you mail in your return. Last year, paper returns stacked up and many calls went unanswered by the IRS due to high volumes and a shortage of workers due to the pandemic. According to the IRS, when you file electronically, returns are expected to be in your hands within 21 days (about 3 weeks).
3. File Accurately
Be sure to take extra time to check your returns before submitting them. Last year, the IRS reported that they caught more than 11 million math errors on forms. Not only will that put more reliance on IRS workers to try to correct the errors, but it will also delay your return. Filing electronically can help alleviate some of these mistakes by using services like TurboTax, H&R Block, or E-File.
If you do file electronically and owe the government some money this will give you more time to pay. Payments do not need to be made in full until April 18th, so when you file earlier you can figure out a game plan for paying that money back. If you’re in need of some financial assistance to pay this back, please reach out to us. We’re here to help.