Benefits to Filing Your Taxes On Time

Feb 24, 2021

The deadline to file your taxes for 2020 is April 15, 2021. If you need more time, you can file an extension and take until October 15, 2021 to submit the return. But should you do this? In some instances where you are waiting on forms or final financials, this may be a good option. But most likely, it is to your benefit to file sooner than later.

There are both personal and financial benefits to filing by the April 15 deadline.

On the personal side, having a recent and complete tax return on hand will make your financial life easier. You will not have to scramble mid-year if you want to refinance your mortgage, fill out the FASFA for college, or apply for another loan which requires proof of income. Filing your taxes early can also provide peace of mind, knowing you are less likely to be a victim of fraud by locking in your tax filing.

Financially, filing your taxes by April 15 almost always makes more sense. If your 2020 income was lower than in years past, filing your taxes now will certify your 2020 income, allowing you to claim any missed Economic Impact Payments, and facilitate your qualification of future payments. If you have a refund due, receive it sooner by filing sooner. If you owe, file, and make a plan to pay your taxes to avoid additional late payment penalties Finally, filing your 2020 taxes early in 2021 will give you a head start on your tax planning for 2021.

Personal reasons to file your taxes by April 15, 2021:

Convenience of having a current tax return on hand
Prevent tax fraud by filing for yourself before someone else
Use tax info to inform goal planning
Peace of mind

Financial reasons to file your taxes by April 15, 2021:

Report lower and more accurate income for 2020
Claim unreceived Economic Impact Payments
Receive your tax refund sooner than later
Avoid additional late payment penalties if you owe taxes
Use 2020 numbers to inform your 2021 tax planning before 2021 is over

So, what are you waiting for? Call 404-996-2421 to schedule a consultation with Shoebox Tax Prep today.

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