Each year, most of the taxpayers wait for the very last moment to file their federal income tax returns. Despite this, there are a lot of reasons why you should ignore the norms and file your taxes early. However, if you are wondering how soon you can file taxes, this article will help you in the earnest. Early filing can help you receive an early refund. This is one of the primary reasons why most people consider it inherent to file taxes early.
Many tax professionals are asked the same questions each year. When will the tax season start? When can I start the tax filing process? How can I claim my tax refund? What is the earliest date to file taxes? If you are wondering how soon can you file taxes, you are not alone. Many people are in the dark about the basic requirements and guidelines that can help you file your taxes at the earliest opportunity.
Another question that dominates the minds of the people is that are they a suitable candidate for early tax filing? The answer to that question is, yes. Anyone can file their taxes at an early date, if they are in possession of complete and accurate, as well as relevant information and documents, issued by the Internal Revenue Service (IRS).
How soon can you file your taxes is a question that is on the minds of many individuals. However, it is important to remember that the tax filing season, for the year 2016, has officially been announced by the IRS. This will allow the submission for electronic and paper documentation to be filed from Tuesday, January 17, 2017.
This year IRS is predicting its individual tax return revenue to be at least 150 million. However, there’s a catch. You can only file your tax returns, for the collective financial year of 2016, until Monday, April 15, 2017. After careful preparation, all the taxpayers are encouraged to compile their year-end statements and Form W-2, from the employers, Forms 1099, from the banks, and the Form 1095-A, from the market place, for claiming their premium tax returns.
Most people have the same question on their minds, how soon can you file taxes? This causes them to worry over the matter and urge them to file taxes at the earliest chance they get. Taxes are an integral part of the economy and the most important variable in the financial structure that enables the country to run smoothly. Although, most of the people are aware of the advantages and dependency of taxes on the national structure, they aren’t happy about parting with a substantial part of their income.
Paying taxes is considered similar to a burden, which encourages some people to avoid the state law. But not paying your tax bills and saving your money, by not giving it to the government, is going to imbalance the financial structure of the whole country and tip the balances. Even if you don’t believe it, it can directly have a profound effect on your job and quality of life. Therefore it’s better to gain complete knowledge on how soon can you file taxes. Here are some important and complicated tax variables, which are explained and detailed in a comprehensive manner.
What You Should Know About Tax Filings
Tax filing is basically income tax returns, which are the most common types of taxes filed, throughout the country. The answer to the question, how soon can you file taxes, lies in understanding the whole concept of tax filings and what are the requirements and procedures involved in them. There are a number of income tax forms that are differentiated on the basis of their purpose. This is why; you must gain comprehensive knowledge about the importance of each IRS Form, which is used to file taxes. This can help you save unnecessary overhead costs from the get go.
How soon can you file taxes might sound like a straightforward question, but it is directly related to the IRS Forms, which can be confusing for some people. If you have a CPA or a tax professional at your disposal, it can make this task much easier. If not, worry not! If you have trouble understanding the difference between the 1040 and 1099 form, don’t feel ashamed or embarrassed, because you are not the first one to feel that way.
Anyone, who isn’t a financial professional, has trouble understanding the differences. But remember, before you start worrying about how soon can you file taxes, you will need to choose a specific form. After you select an appropriate form, based on your need, you can go ahead and file your taxes early.
How Soon Will I Get My Refund?
Early refund is one of the most common driving forces, which encourages people to think about early tax filings. According to the IRS, the organization issues 90% of the refunds within 21 days of the tax form submission. However, an individual can also check the status of their refunds on the IRS website Where’s My Refund. It will activate the moment your data e-file is submitted and will allow you to check your progress and updates in real time. The information about the refund process is updated once every 24 hours by the IRS, but if you check too many times in a single day, the website can lock you out, due to over-usage.
Are You Thinking How Soon Can You File Taxes? You’re Not the Only One!
There are a number of people who are becoming pro-active, where tax filing is concerned. Prior to filing taxes, it is ideal to take financial advice form an experienced tax professional, lawyer or a certified public accountant, who can guide you through the entire process of tax filing. Filing an appropriate form can be a complicated process, and having a tax professional’s services, close at hand, can reduce your stress by a great degree. After selecting the suitable form for your tax filings, a tax professional can help you fill it seamlessly and then file it without any extra cost and overhead charges.
Reasons to File Taxes Early
If you are curious about how soon can you file taxes, you are on the right path, because there are a number of reasons that will encourage you to consider this option. Some of them are explained below.
1) Tax Refunds
One of the foremost reasons to file early taxes is the opportunity to get faster refunds. If you are choosing the option of electronic filing, by automatic direct deposit into your bank account, this will increase the momentum of the refund process.
2) Extra Time to Pay Taxes
If you owe tax balance to the IRS, this is no reason for you to lag behind on your tax filings. If you submit your tax return documentation in early January, you will not be required to pay taxes that you owe, till April.
3) Acquire Financial Information
If you are thinking about making a massive change in your life this year, like becoming a homeowner or continuing you studies and taking admission in college, it can be a powerful reason behind your choice to file taxes early. Preparing the tax returns can provide you with the necessary information that can help you realize your potential and prospective objectives. This will also give you a much needed head-start on the paperwork for achieving your aim.
4) Tax Extension Prevention
If you are thinking about how soon can you file taxes, avoiding the need to submit an extension may be a reason. Extensions are required when you are disorganized and if you waited for the very last minute to file your taxes. Early submission will give you the necessary time to record and prepare the necessary data, regarding additional deductions and financial receipts.
5) Avoid Tax Return Identity Theft
If by an unfortunate event, a criminal gets a hold of your social security number, they will have the necessary information to file the tax return in your name. By indulging in such fraudulent activities, they can pocket your tax refund quite early in the tax season.
How Soon Can You File Taxes And How Will IRS Evaluate Refunds before the Opening Day?
These are one of the foremost questions that tax professionals are asked by their clients. If you file your taxes early, you are giving yourself the opportunity to acquire tax returns faster. Most taxpayers are confused by the complicated filing process. Despite the announcement made by the IRS, many people make crucial mistakes, while filing their taxes. Early tax filings will require you to find a tax professional or a CPA who is accepting tax returns prior to the initiation of the official tax season.
Early submission by your tax preparer will sometimes not help you get your returns faster as they will hold them off, until they get a green signal from the IRS in the form of an official announcement that they have opened their system and portals for processing. According to IRS authorities, there is no use of filing your tax papers before the opening date. Despite that if you still want to file early, you will need the proper documentation and relevant information to do that.
This information incorporates common and specific forms, Forms W-2, Form 1099 or Forms 1098. If you lack these forms, your tax preparer will be unable to file your taxes. After the documentation is in order, you will need to wait for the tax season to begin and the IRS to open the processing system. You will be able to enter your submission through the system after the official announcement by the IRS.
Want To Know How Soon Can You File Taxes? Read This First!
To understand the core of the question, how soon can you file taxes; you will need to understand some important variables. But before you think about that, please remember that the IRS will only start accepting the early tax filings and paper returns after the official announcement by the authority.
Here are two most crucial phenomenons that you should understand before you start thinking about how soon you can file taxes.
1) Accurate Returns
If you want to file your taxes, you will need an accurate return that can be obtained by correct and relevant documentation. The Form W-2, Form 1099, information about your income and business profits will be instrumental in determining and compiling your documentation. Moreover, you will be required to reveal the data for your deductions.
The documentation is sent to the citizen by the end of January, and if you are not in possession of that, you will not be able to file any tax return. This is why; you must always wait for complete and accurate return documentation, before you file your taxes.
2) Don’t Depend On E-Filing for Tax Returns
Some individuals are eager to file their taxes early by acting on a pro-active approach; however, you will still need to wait for your W-2 Form to complete that task. It is better not to rely on your tax preparer, which prefers the e-filing tax system with the help of the latest salary stub instead of your Form W-2. Although, many tax professional advocate the e-filing method, it’s illegal and cause a lot of problems for you in the long run. It is better to follow the regulations and to go through the process step-by-step, rather than taking the short-cut approach.
IRS warns the taxpayers, in FS-2014-11, to stay clear of such tax professionals and urge them to choose a reliable and responsible tax expert, who will consider utilizing the Form W-2, because the information included on that cannot be found on the last pay stub of the year. Inquiring, about how soon can you file taxes, is not enough. You must remember that there is a right time to file your taxes and it can be evaluated by taking a detailed overview of your personal and professional situation. Although using shortcuts is not considered safe, procrastinating is also not the way to go. As soon as you receive your W-2 tax form, without waiting further, file your taxes at the earliest convenience to ensure your financial stability.
Are You Thinking How Soon Can You File Taxes? Consider This First!
Filing your taxes early can have a lot of advantages for you but it can also cause several problems for you. Here are some reasons why you should not consider filing your taxes early.
1) It Decreases Your Interest
If you owe tax balance to the IRS, you will be required to pay the same amount of money, no matter if you pay it earlier or later. To maximize your interest, you can complete the return efficiently and submit it later. Moreover, you can keep the money safe in an interest bearing account that will enhance your financial interests and also help you to earn a few extra bucks while you are waiting to file your taxes.
2) You Might Have To Change Any Mistakes on Your Returns
This is one of the most compelling things that encourage people to wait for a suitable time for filing their taxes. Many employers, institutes, universities, investment, financial or mortgages institutions or organizations can make mistakes on their forms that they submit for the wages, mortgages interest, investment income, tuition costs and other monetary information to the tax authority. This causes several mistakes on the form, requiring you to correct them and the resubmit the information with accurate information.
In case, a form containing incorrect information is submitted to the IRS, they will mail you the correct form. This is not an efficient process and takes a lot of time to complete. Not only this, but you will owe more to the IRS for the services rendered. This is the reason why you should keep a strict eye on the tax forms and take care that if all the information and documentation is correct or not. Another thing which you must keep in mind is to spend the refund wisely, because it provides you with the necessary tax liability, if the conditions are modified suddenly.
3) Current Tax Forms Are Unavailable Until December
How soon can you file taxes? This is the question that forces you to consider several legislations that are passed till the end of the year. However, they will have no effect on your documents and will not be reflected in your tax submissions, even if you file early. If you are using tax software, it will not allow you to finalize your return unless you provide it with the information from all the forms from the current year, applicable to your situation.
If you are considering printing your forms from the official IRS website, then you must ensure that the forms that you are accessing pertain to the same year that you are filing your return for. It is important to note that even if the forms are available, there is a chance that are not fully updated and lack necessary or incomplete information.
Another thing that must be considered is that if the relevant authorities enact a new regulatory law, then all forms will be updated before Monday, April 18, 2016. To keep yourself in the loop, keep a close eye on the amendments, regarding the tax law.
If want to know how soon can you file taxes, you should consider all the information available to you, regarding the topic. Weigh your options according to your preferences, financial situation and needs. Consider all the advantages and disadvantages to determine if you really need to file your tax returns early or not.