Why Should you Do your Taxes Early?
Wednesday, March 3rd, 2010
As most American taxpayers are more than aware, the deadline for filing your individual tax return is April 15 each year. However, there is nothing preventing you from filing your tax return earlier than this – especially with the Northeast’s leading tax experts, RG Brenner. In fact, the Internal Revenue Service (IRS) will accept tax returns submitted in January. As long as you have received your W-2 form from your employer and all of the relevant 1099 forms you need to fill out your tax return you are at perfect liberty to do so long before April 15.
The main reason that many people decide to file their annual income tax return early is in order to get their refund sooner. While electronic filing has significantly decreased the time it takes most people to get their return, obviously the sooner you file the sooner you will get your refund assuming one is owed. However, people filing in 2010 should be aware of the effect that the Making Work Pay tax credit has had on withholding rates. Specifically, this tax credit resulted in the amount of withholding being taken from most worker’s paychecks decreasing, meaning that you may not be entitled to the refund you may expect, especially if you usually receive a very small refund.
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