You don’t have to wait until the last minute to file your taxes, in fact, there is an advantage of doing so, and here are four reasons why you should.

1) Receive your refund sooner.

If you are due a refund, it only makes sense to file sooner, rather than later. Besides, why let the IRS hold on to your money longer than they have to. Receiving your refund sooner, allows you to take care of some bills that you might want to pay, plan a long overdue vacation, or simply save it. Whatever you decide to do with the refund, it is your money to do what you please with it and should be in your possession, not the possession of the IRS and the state.

2) Tax due payment planning.

I can’t think of anyone in their right mind who is ok with owing the IRS or a state taxing agency. Hopefully, you are not one of those who will owe, but if you are, having your tax return prepared this early gives you the opportunity to figure out how you are going to pay the taxes due. If you owe and file early, at least you will have until the tax filing deadline date to pay the taxes due unless you enter into an installment agreement. Note that filing an extension is only an extension of time to file your tax return, not to pay any taxes that are due. Unless you work out a payment plan with the IRS or state taxing agency, any taxes owed, are due by the April 15th tax filing deadline date.

3) Avoid the stress of last-minute filing.

Typically, if a person knows that they are going to owe, they wait until the last minute to prepare their tax returns. But waiting until the last minute doesn’t allow much time for problems and questions that crop up, which more times than not, usually do. Yes, you know that you’re going to owe, but waiting until the last minute to file isn’t going to change that. Why not get the taxes prepared and out of the way. Even though you will owe, at least you will know how much you will owe and can possibly work out a game plan for coming up with the money before tax deadline day.

4) Some other benefits to filing your tax return early:

• Financial aid requires information from your tax returns. If you or your dependent is applying for financial aid, information from your tax return will be needed.
• If you are divorced or separated, and you and your ex-spouse or ex-significant other are feuding about who gets to claim the kid(s). In some cases, one parent will rush and claim the child(ren) without the other parent knowing, even if they weren’t supposed to. When this happens, it is more of a hassle than not to get the matter straightened out.
• Whether you decide to file sooner rather than later, is up to you. However, if you end up owing, to avoid penalties and interest, be sure to file and pay, if you haven’t made payment arrangements, before the tax deadline due date.