Have you still not filed your taxes? Believe it or not, you’re not alone! Last year’s IRS data showed that a whopping 60% of Americans hadn’t filed their taxes for 2023 till the last minute. Although the IRS gives you a fair amount of time to do your taxes, it doesn’t mean you wait until the end. Imagine the stress of scrambling to find paperwork and meet the deadline on April 15th of this month. Sound familiar?
But here’s the good news: Tax season doesn’t have to be a nightmare. Filing your taxes early can benefit you in surprising ways. Being tax preparers in Milwaukee, ATC Income Tax will show you exactly how! We’ll break down the advantages of getting your return early, from getting your refund faster to avoiding identity theft.
Plus, we’ll offer step-by-step guidance to help you get started on your taxes without the last-minute panic.
Benefits of Filing Early
Filing your taxes early might seem challenging, but trust us, it’s a decision you won’t regret. Here’s how getting a head start on tax season can work wonders for your wallet and peace of mind:
1. Get Your Refund Faster
Think of the tax filing season as a crowded theme park. The closer you get to April 15th, the longer the lines become. You’re essentially getting ahead of the late filing rush when you file early. The IRS prioritizes processing returns received in the season’s first few weeks.
The quicker you tend to file, the shorter the IRS will take to process and submit returns. The IRS usually submits nine out of ten tax returns in less than 21 days. However, the longer you take to file taxes, the greater chances there are for issues to arrive that can add to processing time, causing you to wait longer.
2. Avoid Identity Theft
Tax identity theft is a serious concern; unfortunately, it’s more common than you might think. Last year, the IRS revealed that they had flagged more than a million tax returns as fraudulent.
When you file early, you significantly reduce the window of opportunity for criminals to steal your Social Security number (SSN) and file a fraudulent tax return in your name. The IRS has implemented security measures to prevent identity theft, including multi-factor authentication and screening for suspicious activity.
However, filing early adds another layer of protection. If a thief attempts to file a return under your SSN after you’ve already submitted yours, the IRS will likely flag it as a duplicate and investigate further. This can save you stress down the road.
3. Reduce Errors and Avoid Audits
The pressure of meeting the deadline can lead to careless mistakes on your tax return. Rushing through deductions, overlooking important documents, or miscalculating numbers can all trigger an IRS audit. When you file early, you have the luxury of time to meticulously review your tax documents, ensuring everything is accurate and accounted for.
This minimizes the chances of errors and reduces the risk of an audit. If your tax situation is particularly complex, consider seeking help from experienced tax preparers in Milwaukee like the ones at ATC Income Tax.
Their knowledge and expertise can be what you need to ensure your return is filed accurately and efficiently, giving you peace of mind and potentially uncovering deductions you might have missed.
4. Save Money on Tax Preparation Fees
While not always the case, some tax preparation firms in Milwaukee, like ATC Income Tax, offer limited-time offers for clients who file before a certain date. This can be a great way to save money on professional tax preparation services.
Additionally, filing early allows your tax preparer more time to dedicate to your return, enabling them to delve deeper into your situation and potentially find additional deductions or credits that could benefit you.
5. More Time to Plan for Next Year’s Taxes
Filing early can provide valuable insights into your tax situation for the following year. By reviewing your return with a tax preparer in Milwaukee, you can better understand your tax bracket, deductions, and potential tax liabilities.
This knowledge can assist with making informed financial decisions throughout the year, potentially putting you in a better position come next tax season. ATC Income Tax offers year-round tax planning services to help you stay on top of your finances and maximize your tax benefits.
Remember, filing early isn’t just about getting your refund faster; it’s about taking control of your tax situation and minimizing stress. Giving yourself ample time can help you ensure accuracy, avoid common pitfalls, and potentially save money. So, ditch the last-minute scramble and embrace the benefits of early filing.
Steps to Get Started Early
Filing early doesn’t have to be complicated. Here’s a straightforward roadmap to get you started and ensure a smooth tax season:
1. Gather Your Documents
The first step is to gather all the necessary documents. Here’s a quick rundown of the essentials:
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W-2s
This form, provided by your employer, summarizes your wages and withheld income taxes for the year.
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1099s
These forms report income from sources other than your primary employer, such as freelance work, interest payments, or dividends. There are various 1099 forms, so collect all that apply to you.
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Receipts for Deductions
If you plan to itemize deductions (rather than taking the standard deduction), you’ll need receipts for eligible expenses such as charitable donations, mortgage interest, medical bills exceeding a certain threshold, and certain business-related expenses (if you’re self-employed).
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Other Relevant Tax Forms
Depending on your tax situation, you may have additional forms like K-1s (for income from partnerships or S corporations) or 1095-A (for health insurance marketplace coverage).
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Know the Standard Deduction Amounts
The standard deduction is a fixed amount you can take out from your taxable income to reduce your tax liability. The IRS adjusts the standard deduction amounts each year to account for inflation. Here’s a table to help you plan:
|
Filing Status |
Standard Deduction (2023) | Standard Deduction (2024) |
| Single | $12,550 | $13,850 |
| Married Filing Jointly | $25,100 | $27,700 |
| Head of Household | $19,400 | $20,800 |
| Married Filing Separately | $12,550 | $13,850 |
| Qualifying Widow(er) | $25,100 | $27,700 |
2. Consider E-filing
Once you gathered all the documents, the next step involves e-filing. It is the electronic submission of your tax return directly to the IRS. E-filing offers numerous advantages over traditional paper filing:
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Faster Processing Times
The IRS generally processes E-filed returns quicker, leading to faster refunds.
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Increased Security
E-filing minimizes the risk of errors and lost paperwork compared to paper returns.
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Automatic Error Checks
E-filing software includes features that catch common mistakes, ensuring accuracy and avoiding potential delays.
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Convenience
E-filing allows you to file your return from anywhere with an internet connection.
The IRS offers free e-filing options for many taxpayers through its Free File program. Alternatively, you can utilize tax preparation software or seek the services of a tax preparer who offers e-filing like ATC Income Tax.
3. When to Seek Professional Help from Tax Preparers in Milwaukee
While filing early can be straightforward for simple tax situations, there are times when seeking help from a professional tax preparer in Milwaukee can be beneficial. Here are some indicators:
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Complex Tax Situations
If your tax situation involves factors like owning a business, significant investments, or rental properties, a tax preparer can navigate complex tax codes and ensure you’re taking advantage of all available credits and deductions.
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Self-Employment Income
Self-employed individuals often have unique tax filing requirements. A tax preparer can ensure you’re reporting income and claiming deductions accurately.
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Significant Deductions/Credits
If you have substantial deductions or credits to claim, a tax preparer can ensure you’re maximizing these benefits and filing correctly.
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Lack of Confidence
If you’re unsure about any aspect of tax filing or simply feel overwhelmed by the process, a tax preparer can provide expert guidance and peace of mind.
Final Note
Filing your taxes early might seem daunting at first, but it can be a breeze with the right approach. Following the steps outlined above and gathering your documents early can ensure a smooth and stress-free tax season. Remember, the benefits of early filing go far beyond just getting your refund faster. You’ll gain peace of mind knowing your return is accurate, avoid potential tax pitfalls, and potentially save money.
For those with more complex tax situations, consider seeking the assistance of experienced tax preparers in Milwaukee like the ones at ATC Income Tax. Our team is here to guide you through the process, ensure you maximize your deductions and chttp://www.atcincometax.com/income-tax-service-milwaukee-wisconsin-locations/redits, and take the stress out of tax season.
