Filing your taxes can be confusing for anyone, regardless of what kind of job they have or how much money they make. If you're guilty of waiting until the deadline to even pull out your forms, you're certainly not alone. But before you resort to old habits, you should know there are serious benefits to getting it done early.
It's Your Money
There's no reason to let your money stay with the government for any longer than it needs to. No matter how much money you're getting back in a refund, you can use it to reach your 2020 goals. Now is a great time to begin knocking out some of your debt so you can breathe a little easier as the year goes on. Even in a debt settlement program, your ultimate objective is to pare down the principle of the debt rather than constantly putting your money toward interest. As your principle starts to dwindle, your payments will follow suit. If you happen to have anything leftover, consider placing the money into a high-yield savings account and watch your money blossom over the course of the year.
Taxes are a jumble of numbers and options, and the truth is that most people don't really understand the complex questions that litter the forms. Between the jargon and the number of line items, even certified accountants aren't always sure how to classify certain income or whether to declare certain expenses. But the more you procrastinate on your taxes, the more your anxiety will build around it. That kind of dread can even lead to your filing after the deadline — and result in the denial of your rightful refund.
When you have enough time to fill out your taxes correctly, you're far less likely to make a mistake. There are a number of ways to increase the size of your income, so long as you take the time to do your research. For example, there are likely a number of write-off opportunities that you can take advantage of. Expenses related to your job, charity donations, and capital losses are just a few examples of how to reduce your taxable income. If you start now, you can estimate and integrate those write-offs into your official tax forms.
A tax return is nothing to be afraid of, even if it can be intimidating at first glance. Taking care of it early not only gives you more time with the money you've rightfully earned, it can also be an effective strategy to increase the size of your refund. Plus, you'll be able to sleep a little easier at night knowing it isn't hanging over your head.