Skip to main content

Four reasons why you should file your tax return early

tax return, filing your tax return, when should you file your tax return, how to file your tax return, tax return due date, tax season, tax filing due date
The U.S. tax return filing due date is April 15 each year. Additionally, you may choose to file an extension that extends your tax return filing due date to October 15 (Please see Tax Extension: How to file a tax extension?). Because of COVID-19 and the related economic shutdown, the IRS granted all U.S. taxpayers with April 15 due dates an automatic tax return filing extension to July 15 (Please see Coronavirus (COVID-19) Tax Impact - Relief from timely filing of 2019 Federal income tax returns). However, while your tax return is now due on July 15, you should still file your 2019 tax return early.

Like any task, it may be tempting to procrastinate filing your tax return, but by doing so, you may face issues later on relating to your taxes and information. Therefore, you should file your tax return as soon as possible. Below are four reasons why it is beneficial to file your tax return early.

Related Posts:
The Complete List of Tax Credits for Individuals
File your taxes online for free: The IRS Free File Program Explained
Tax Filing Guide: How to determine your tax filing status?
Guide to Taxable Income for Individuals: How to calculate your taxable income amount?

Four Benefits of Filing Your Taxes ASAP

1. Financial Benefits

The most exciting part of the tax filing season is the tax refund. Well, the sooner you file your tax return, the sooner you will receive your tax refund. If you are eligible for a tax refund, once the IRS accepts your tax return, you will typically receive your tax refund within 21 days (Please see: Tax Refund Schedule: When should I receive my tax refund from the IRS?).

By receiving your tax refund early, you can now make smart and timely financial decisions. If you have have debt, pay off the debt with your tax refund, which will save you money by lowering principal and related interest expense. If you have a retirement savings account, contribute the tax refund to your IRA or 401(k). If you have a brokerage account, invest your tax refund in your preferred investment types. If you have a large future purchase, use the tax refund towards the payment.

Overall, people have a need or purpose for money; therefore, it is beneficial to file your tax return early to receive your tax refund payment as soon as possible.

2. Tax Payment Plan and Budget

Conversely, you may discover that you owe tax when filing your tax return. If you procrastinate to file your tax return until the deadline, you will have to find the money to pay the tax bill by the tax filing due date of April 15 (Tax filing due date is July 15, 2020). For people on a tight budget, this extra expense may cause a financial burden. Also, it is important to note that filing an extension extends your tax return due date but not your tax payment due date.

If you proactively file your tax return early, you will have several months to plan and pay off the tax bill. You will be able to successfully integrate the tax expense into your budget, alleviating the financial burden of the additional expense.

3. File the best possible tax return with the best filing option

There are many tax preparation software and packages available to U.S. taxpayers. You should take time to research which software and package is best for you. Procrastinating filing your tax return may cause you to pick a software and package that does not match your needs, which will either result in you overspending or not receiving the necessary functions.

There are many tax deductions and tax credits available to U.S. taxpayers. You should take time to research which tax deductions and tax credits you may claim on your tax return. Procrastinating filing your tax return may cause you to miss those tax benefits, which will result in you paying too much tax. Take the proper amount of time to ensure you are correctly filing your tax return and getting your maximum tax refund.

All in all, proactively filing your tax return eliminates last-minute stress and results in you filing the most favorable tax return.

Tax Prep Software:

4. Protection from identify thieves and other scams

Identity thieves, hackers, and scammers take advantage of the tax filing season. If an identify thief obtains your Social Security number, he or she can file a fraudulent tax return and steal your tax refund. This can be resolved with the IRS, but the process is long and difficult. You may also face tax return related phishing attempts via phone calls and emails.

The best way to avoid the scams is to file your tax return early. Once the IRS accepts your tax return, you are safe from fraudulent tax return attempts. Also, you can confidently ignore any phishing attempts related to your tax return.

In conclusion

You should be proactive during tax season. I hope the four benefits discussed above helped motivate you to file your tax return early. Please share with others to teach them the benefits of filing your tax return as soon as possible.

As always, please comment below if you have any further questions about the post.


  1. Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. I hope you post again soon. Big thanks for the useful info. File Taxes Online

  2. Thank you so much for this best knowledge. I really like your work and research about Ecommerce Accounting Company In Uk . You give us the best knowledge by your blog and I agree with your point of view, keep it up.

  3. Thanks for your post. It's very helpful post for us. You can also visit Automated SMSF Audits in Australia for more Victor Steel related information. I would like to thanks for sharing this article here.

  4. Thanks for your post. It's very helpful post for us. You can also visit Accounting Tax Services Calgary for more Victor Steel related information. I would like to thanks for sharing this article here.

  5. Thanks for your post. It's very helpful post for us. You can also visit Santa Barbara Tax CPA for more Victor Steel related information. I would like to thanks for sharing this article here.

  6. You wrote this post very carefully.Xero Accountant The amount of information is stunning and also a gainful article for us. Keep sharing this kind of articles, Thank you.

  7. I read the above article and I got some knowledge from your article. small business accountants london, It's actually great and useful data for us. Thanks for share it.

  8. I liked your work and, as a result, the manner you presented this content about free tax software canada.It is a valuable paper for us. Thank you for sharing this blog with us.


Post a Comment

Popular posts from this blog

Gambling Winnings & Losses: How to report gambling income and losses

People love to gamble.  During the past NFL Super Bowl (2019),  gamblers wagered approximately $146 million in Nevada’s sports books, which fell short of the record set the year before of $159 million. The gambling industry continues to grow as U.S. legislation becomes less restrictive relating to the gambling industry.  Because of the size of the gambling market, the IRS set forth guidance to control the tax treatment of gambling winnings and losses. I will discuss income and losses, record keeping, reporting forms, and special rules. If you participate in gambling activities, it is important to know the unique personal tax rules. The term 'gambling' applies to a wide range of activities, including: sports betting, casino games, lotteries, etc. You will need to follow the established gambling tax rules when reporting winnings and losses from gambling activities. Related Posts IRA Income: Must know tax rules relating to your IRA Are your income items taxable? Gamblin

Cryptocurrency Taxation: How does the U.S. tax cryptocurrency? - Textbook Tax

The cryptocurrency market continues to rise in popularity in the U.S. and throughout the world. The decentralized finance ("Defi") sector has seen massive growth. Additionally, ease of access has increased as new and established companies offer crypto services and exchanges. As more and more individuals and institutions adopt cryptocurrency, it becomes more important for people to understand the tax laws and regulations governing the cryptocurrency industry. It is important to note that each country views and regulates virtual currency differently.  The scope of this article covers the crypto tax laws in the United States.  T he IRS defines virtual currencies as  digital representations of value that function as mediums of exchange, units of account, and/or stores of value. Further, t he U.S. views crypto as property subject to capital gains and losses for US federal tax purposes. Based on its designation as property, i n general, there are four taxable events when dealing an

20 Tips & Tricks for Studying for the CPA Exam

For those on the way to becoming a certified public accountant, you now know it is a long and difficult journey. For those just beginning, good luck! The most difficult and time-consuming task is passing the CPA Exam. CPA candidates must spend hundreds of hours preparing for all four sections of the CPA. Each CPA section represents an entirely different topic, creating a daunting task for anyone looking to start studying for the CPA exam. I passed all four sections of the CPA with an average score of 91. Luckily, I did not have to retake any of the exams, which is a common occurrence as the average passing rate is around 40-50% per exam. Having personal experience dealing with the CPA exam process, I want to share valuable tips for conquering the CPA exam. I want you to feel confident and comfortable during the CPA exam process, and so, I believe the following tips will help you during the CPA exam process. Lets begin! Related Posts -  Preparing for the CPA Exam: How to Study