Procrastination is one of the most common problems that people face when it comes to filing their taxes. For many individuals, tax season is a time when they feel a sense of dread and anxiety, which often leads to putting off the process until the last minute. However, taxpayers need to realize that waiting until the last minute to file their taxes may increase the likelihood of making mistakes, paying more than the required amount of taxes, and missing out on valuable tax deductions and credits.
When does tax season end?
The standard tax season begins on January 1st and ends on April 15th every year. However, due to the ongoing pandemic situation, the IRS has extended the deadline for filing your 2020 taxes to May 17, 2021. This means that taxpayers have more time to prepare and file their tax returns without rushing.
While this extension provides some relief to taxpayers who may have been struggling due to the pandemic, it’s important to note that it’s always better to file your taxes as early as possible to avoid any last-minute stress or mistakes.
Why you shouldn’t wait
There are several reasons why taxpayers shouldn’t wait until the last minute to file their taxes. Here are just a few of the most important reasons:
1. Avoid paying penalties and interest
If you don’t file your taxes on time, you may end up paying a significant amount of penalties and interest. The IRS charges interest on any taxes that are not paid by the deadline, and the longer you wait, the more you’ll have to pay. Additionally, if you owe taxes and don’t file your return on time, you may also face penalties for failure to file, which can be as high as 5% of your unpaid taxes per month. These penalties can add up quickly, making it even more important to file your taxes on time.
2. Maximize your tax refunds
If you’re entitled to a tax refund, it’s essential to file your tax return as early as possible to get your refund quickly. By filing early, you can avoid long processing times and receive your refund sooner. Additionally, if you’re eligible for any tax deductions or credits, you’ll want to make sure to claim them before the deadline. By waiting until the last minute, you may miss out on valuable tax benefits that could help you save money.
3. Reduce the risk of errors
If you wait until the last minute to file your taxes, you may be more likely to make mistakes. Rushing through the process can lead to errors, such as entering incorrect information, forgetting to include necessary forms and documentation, or miscalculating your taxes. Even minor mistakes can cause delays in processing and may even result in additional penalties and interest. By taking the time to file your taxes early, you can reduce the risk of making these kinds of errors.
4. Reduce stress
Finally, waiting until the last minute to file your taxes can be incredibly stressful. Rather than worrying about whether or not you’ll be able to finish on time, filing early allows you to relax and enjoy the rest of tax season without any worries. Additionally, if you’re self-employed or have a complex tax situation, filing early may help you avoid the stress of trying to meet the deadline while juggling other responsibilities.
Conclusion
While tax season can be a stressful time for many, waiting until the last minute to file your taxes can only make things worse. By filing early, you can avoid penalties and interest, maximize your tax refunds, reduce the risk of errors, and reduce stress. So instead of waiting until the last minute to file your taxes, start preparing as soon as possible and enjoy the peace of mind that comes with being ahead of the game.
