Filing Early Tax Return Can Mean More Money For Atlanta Taxpayers
Just like early birds get the fattest worms, early tax filers might get the fattest tax refunds.
Even though Uncle Sam is extending this year's tax deadline from April 15 to April 18 due to a Washington holiday, taxpayers may want to file early this year, explain Atlanta bankruptcy attorneys - particularly those who think they're going to be getting money back. This Tuesday, the IRS began accepting returns, even for taxpayers planning on itemizing deductions (though most of us can file as soon as we receive our W2 and 1099s, itemizers had to wait a bit longer this year while the government put some tax law changes into effect). Maybe the idea of doing your taxes now doesn't exactly have you jumping up and down - but here's why it should.
The earlier you send in your return, the earlier you can get that tax refund. And the earlier you get your refund, the more potential it has to grow. Let's say you planned on saving that refund check. Whether you park it in a savings account, a money market or a CD, doing it sooner means the potential to earn a couple months more in interest. Now let's say you'd prefer to use that money to pay off some high-interest credit card debt. If you can knock a couple thousand dollars off your balance, think of how much you'll save in interest every time you pay your bills. And if reducing your balance means reducing the chance you'll owe late payment fees - or have to take out high-interest payday loans - you'll save even more money.
But those are just the monetary benefits. You'll also save stress. Just like doing your homework on a Friday afternoon instead of a Sunday night, you'll make the experience much more pleasant - and since you're not in a rush, you'll be far less likely to make potentially costly mistakes or end up missing your deadline.
Then again, there are some instances in which it's better to file in April. If you find you're stuck paying taxes, you can save money by holding onto your payment - and earning interest on it - a bit longer. You'll also give yourself time to start saving money so it doesn't come as so much of a blow when it's time to send in your check.
Of course, if paying your taxes is going to be a major burden, giving yourself a couple more months might not make much of a difference. If that's the case, maybe you need a more drastic - and effective - strategy. Take bankruptcy, for instance. If credit card debt, medical bills or even past IRS debts are interfering with this year's taxes, the right bankruptcy plan may be able to relieve those debts so you can afford to pay the IRS (and keep paying your mortgage at the same time). It's free to learn more when you try a complimentary personal debt analysis with an Atlanta bankruptcy attorney. If debt is making your life impossible, bankruptcy can offer a fresh start.