February 2023 Tax Tips

 In Tax

Reasons to File Early: When it makes sense to file a tax return as soon as you can

The 2022 tax filing season officially begins when the IRS starts accepting tax returns in late January and early February. There are many reasons to consider filing your tax return as soon as the IRS begins accepting returns. Here are some of the most common:

  1. To get your refund. There’s no reason to let the government hold onto your funds interest-free, so file early and get your refund as soon as possible. While legislation delays receiving refunds for tax returns claiming The Earned Income Credit and the Additional Child Tax Credit until after February 15th, the sooner your tax return is in the queue, the sooner you will receive your refund.
  2. To minimize your tax identity fraud risk. Once you file your tax return, the window of opportunity for tax identity thieves closes. Tax identity thieves work early during the tax filing season because your paycheck’s tax withholdings are still in the hands of the IRS. If they can file a tax return before you do, they may be able to steal these withholdings via a refund that should have gone to you!
  3. To avoid a dependent dispute. One of the most common reasons an e-filed return is rejected is when you submit a dependent’s Social Security number that has already been used by someone else. If you think there is a chance an ex-spouse may do this, you should file as early as possible.
  4. To deliver your return to someone who needs it. If you are planning to buy a house or anticipate any other transaction that will require proof of income, you may wish to file early. This is especially important if you are self-employed. You can then make your filed tax return available to your bank or other financial institution.
  5. To beat the rush. As the tax filing deadline approaches, the ability to get help becomes more difficult. So, get your documentation together and schedule a time to get your tax return filed as soon as you can. It can be a relief to have this annual task in the rear-view mirror.:

Should you wish a review of your situation, reach out to us at Jason@ossercpa.com. It’s better to be prepared than surprised when it comes to your tax obligation.

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