05 Feb Why is it better to file your tax return sooner rather than later?
One big benefit, or potential risk reduction in filing now vs. closer to April 15th is because of the identity theft factor. If someone has filed a bogus return using your credentials, you won’t know until you file. It’s better to know now and take the corrective steps necessary to prove your own legitimate return, than wait until closer to the deadline to deal with this issue and a risk an even longer delay in your refund. Besides, filing early may mean the thief could get the rejected return instead of you.
In addition to protecting yourself, filing early means your refund will be in hand sooner. The IRS expects to have refunds issued within 21 days of filing. If you’re not a fortunate filer, expecting a refund, it’s still a good idea to file now. The new tax laws may have implications you didn’t expect or plan for. You won’t have to pay until April 15th, but you’ll have more time to prepare for that payment or discuss options with your CPA.