As a CPA during tax season, I meet with lots of people. Many of them are regular clients who engage in year-round tax planning. For these people, tax season has few if any surprises. Others aren’t so well prepared. No one wants to pay more in taxes than they have to. Two of the best strategies for preventing that are tax planning and early filing.
Here are three strong reasons to file your taxes early.
1. You will gain extra time to pay the taxes you owe.
When you’re facing an income tax bill instead of a refund, it’s natural to put off filing as long as possible. But that isn't the best strategy. By filing early, you will know exactly how much you owe and then have until the April filing deadline to pay. This gives you time to make a sensible plan for setting aside the amount due.
2. You can avoid filing a tax extension.
Filing your tax return early may help eliminate the need for an extension. Sometimes people just need more time to prepare their return. They didn’t have the necessary paperwork or receipts for deductions in time for the deadline. The problem with filing an extension is that unless you pay any amount owed, you will incur interest and penalties on the balance. Last minute extensions don’t give you the time to come up with the money.
3. You will get an appointment with your tax professional.
One if the realities of tax season is that tax professionals have increasingly busy schedules. If you wait until the filing deadline is looming, chances are that your CPA or tax preparer will be fully booked. It can be nearly impossible to get an appointment during crunch time. The earlier you start, the better your chances of getting the professional guidance you need to maximize your tax savings.
Let us help you plan ahead for growth!
Charles P Myrick CPA offers tax preparation for individuals using a process that combines smart, personalized planning with annual tax preparation and filing. Our job is to help you know about all the available tax opportunities that meet your individual needs and circumstances. We work closely with tax lawyers, and investment advisors to ensure that all the details are legally sound, technically accurate, and working to your maximum benefit. Contact us to learn more: (202) 789-8898