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Mike DiSabatino CPA

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Reasons to File Your Taxes Early

Reasons to File Your Taxes Early

Reasons to File Your Taxes Early

While late changing tax laws make it impossible to file your income tax return prior to January 20th this year, there are a number of reasons to file your return as soon as possible. Here are five of the most common:

 

College financial aid. The Free Application for Federal Student Aid (FAFSA) determines eligibility for College related grants, scholarships and financial aid. Schools also use this information to provide financial assistance to their students. The FAFSA requires tax information to complete the form. You can submit the application with estimated tax numbers and then update them, but it is best to get the information finalized as soon as possible.

You expect a refund. Why let the government hold your funds interest-free? So file early and receive your refund earlier. Given the late changing tax laws and the IRS under-staffing problem, the IRS has warned us of delays in refund processing. The sooner your tax return is in the queue, the sooner you will receive your refund.

Minimize tax identification fraud. Once you file your tax return the window for tax identity thieves closes. Tax identity fraud works best for thieves early in the tax-filing season because your withholdings are still in the hands of the IRS. If they can beat you to the filing window, they can try to steal these withholdings.

You think there may be a dependency battle. One of the most common e-file reject errors is using a dependent’s Social Security Number that has already been used by someone else. If you think there is a chance of this happening to you with an ex-spouse you will want to file as early as possible.

You need your tax return for something else. If you are planning to buy a house or anticipate any other transaction that will require proof of income, a filed tax return may be required. Why not file early and make this documentation available to your bank or other financial institution?

Please give us a call to discuss this or any of our other topics with you, so we can address your specific requirements.

DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com

This publication provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, rewritten or redistributed without permission, except as noted here.  All rights reserved.

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