Preparing and filing your taxes can be a difficult and daunting task. It comes as no surprise that many don’t know how tax prep in New York works, hence the prevalence of tax preparation services in NY. So when it comes to filing your taxes, its complicated nature shouldn’t be the reason you put it off. In fact, it’s the opposite.
Preparing and even filing your taxes early can be a great a help to everyone. Here 5 reasons for why you should stop putting it off and get on top of your tax preparation for the year.
Faster tax refunds
Not everyone may know how to prep their taxes in New York, but we all know why we do it: to pay what we owe and to receive any tax refunds that we might be entitled to. One of the top reasons why you should work on your NY tax prep early is so that you can also receive your tax refund sooner.
Filing your return electronically with direct deposit into your bank account is the fastest way to get your refund. It can take up to several weeks longer for paper returns, so it’s usually better to e-file if you want to receive your refund quickly. Not to mention, e-filing can also be more convenient, allowing you to skip any lines.
Extra time to pay taxes owed
You can still have a compelling reason to file your tax return as soon as you can even if you have an outstanding debt with the IRS. Filing early won’t meant that you have to pay right away. For example, if you file in January, you won’t have to pay what’s due until the filing deadline
You will have more time to organize your payment if you prepare your Form 1040 in advance. The extra time is especially beneficial for people who need to determine their exact amount of IRS debt. If your tax debt is particularly high, this can also give you time to gather the money needed to pay it off.
Avoid a tax extension
It might be possible to avoid having to file an extension if you file your tax return early. More frequently than not, time extensions are needed due to disorganization rather than a lack of funds. Some taxpayers who wait until the last minute to submit their forms simply need more time to compile receipts or hunt for new deductions.
If you push the process too close to the deadline, you increase the need to sign up for New York tax prep services. Even worse, if you file an extension but fail to pay what you owe, the IRS can charge you interest and penalties on the outstanding debt until it’s paid in full.
Time to obtain financial information
For those expecting big life changes like purchasing a home or going back to college, preparing taxes early will help you get essential information that you might need. You can use the information from Form 1040 to apply for financial aid for any big purchase you might be making in the future. Prospective homebuyers on the other hand will need their completed tax return as proof of income in order to secure a mortgage.
Prevent tax return identity theft
All it takes for someone to file a tax return in your name is your Social Security number. a common scheme of unsavory characters is to find out your Social Security number and use that to file a fraudulent tax return. Their intent, of course, isn’t to pay your back taxes, but rather to pocket your tax refunds. These scams happen early in the year, but can be avoided if you prep and file your taxes early.
Never fall behind your taxes with Melanin Tax
Whether you’re busy, intimidated, or just unaware, falling behind with taxes isn’t a worry when you get the help of tax preparation services in NY with Melanin Tax. Feel confident every Tax Day knowing your taxes are filed on time and correctly thanks to a trusted tax prep company in NY.
Give Melanin Tax a call today at (347) 943-6772 and see how we can help you with your taxes, whether you’re an individual or a business.