If you typically file your tax return on the tax deadline, you might want to reconsider
Is it ever too early to start thinking about filing your tax return? We say, absolutely not. In fact, there are a few situations where we actually suggest starting early. We’ll get to that shortly.
The first thing you should know is that the IRS will accept your 2018 tax return starting no earlier than January 28, 2019; and this year, the absolute deadline for filing is April 15 ,2019. That gives you a three-month window to decide if you are going to file early or continue to fall to the stress of meeting the deadline.
First things first. Regardless of when you are going to file your tax return, start getting organized now by:
- Gathering your information returns
- Bundling your receipts
- Collecting any charitable donation receipts (see our blog on new tax rules regarding charitable donations)
- Talking with your financial advisors about what you would want to do with a tax refund or how to budget for a tax payment
Five Reasons Troy Michigan Residents Should Consider Filing Their Tax Return Early
Now that you have collected everything you need to maximize your return, here’s why we think you should connect with our Michigan tax experts and allow us to prepare and file early on your behalf.
- Get Your Tax Return Refund Faster: If you are typically owed money each year, consider filing as soon as possible. Not only will you receive your money faster, as there are fewer returns to process compared with those filed at the last minute; you will be able to benefit from that money coming in. As they say, better in your pocket than the government’s.
- Provides Time: For those who typically owe at tax time, it can helpful to file early to see just how much you will have to fork over. Filing early does not mean you have to pay early… you will still have until the deadline to either pay your balance in full, or make a payment-arrangement plan with the IRS.
- More Prepared: When you weighted down with a looming deadline, you can take your time in gathering the documents you need for your tax expert to prepare your return. The more thorough you are, the better you are able to take advantage of all deductions, not just taking the standard. BONUS: the IRS indicates that those who file no later than mid-February, typically see larger refunds.
- Financial Decisions: As we mentioned earlier, there are some people who benefit more from completing their taxes early. Students returning to school, for example, use the information from Form 1040 to apply for financial aid. While those looking to buy a home often require a completed tax return as proof of income. Completing your tax return early gives you the flexibility to move forward on those other important processes. Our E&Y tax experts can help you understand how the information from your tax returns can be used in other areas of your life.
- Protection from Tax Fraud: Tax fraud, or any identity-based fraud is a growing concern given the increasing number of cyber security threats happening around the country. Once a criminal gets access to your Social Security number, he or she has everything necessary to file a false tax return in your name and pocket the refund. To avoid being flagged as a duplicate return, these types of scams typically occur early in the tax season, well before most taxpayers file. So, filing early, decreases the threat to your financial security.
The decision on when to file your tax return is ultimately up to you. Whenever you are ready, call our E&Y tax experts to help prepare your return while you wait.
About E&Y Insurance Agency and Tax Preparation Services
E&Y Insurance Agents are dedicated to giving our clients insurance products that provide quality protection and value pricing. Our goal is to establish a successful partnership with our clients, our staff members, and our insurance companies. Our success is measured by our clients choosing us because they believe in our ability to meet or exceed their expectations of price, service, and expertise. Call us now at 248.817.8071 to talk about your insurance needs! We are located at 888 W Big Beaver Rd #750.
