Should I Wait To File My Taxes?

That dreaded day is approaching….TAX DAY! (If you have a business, keep in mind that March 15 is the business filing date, while personal filing is April 15.)For most people, taxes cause a lot of anxiety. Are you the kind of person who will get it out of the way as quickly as possible or does the thought of taxes fill you with so much dread that you hold off until the last possible minute to get your taxes done? Is there any benefit to either option?

Filing Taxes Early

• Get your refund sooner - who doesn’t like getting money back? If you know money is coming to you, why wait?

• Protect against identity theft - If someone tries to claim your refund using your Social Security Number, if you get in first, you’ll be able to thwart their attempts. 

• Have time to deal with problems - if you are missing any documents or there are any errors, you will have time to deal with those issues and not have to run around like Chicken Little, trying to prepare for the dreadful TAX DAY

Waiting to File

• More time to get paperwork done - waiting gives you several months to gather all the information you need to file. 

• Time for forms - you can make sure you have any late or corrected documents if you file later. 

• More time to raise money - no one really wants to owe the IRS any money, but if you do, waiting to file can give your money more time to accrue interest or more time to come up with the money to pay them. 

So, does it really matter if you file your federal taxes early or right on the deadline? Not really. As long as you are filing or have filed an extension (which gives you an extra 180 days to file), and made any estimated payments on your taxes by April 15 it is a personal choice and you can decide whether you want to file early or wait. 

Keep in mind that this is for your federal tax filing, and tax filing may differ from state to state.

If you find yourself up a creek without a paddle when it comes to taxes and the whole process, it’s okay, you’re not alone; Irvine Legal can throw you that life vest and help make tax time less like the world is ending.