Stretch your Dollar: Benefits of filing your taxes early this season

Stretch Your Dollar

(WTNH) — Tax season officially begins on Friday, and the pandemic is creating some changes for a lot of families. We are stretching your dollar with why it’s more important than ever you file early.

You hear every year to file your taxes early, but amid a pandemic, Jackson Hewitt’s Mark Steber, says it’s more important than ever you don’t put it off.

“Waiting until the last minute is the number one problem I see quite honestly,” Steber said. “File early this year. If you get your refund, great — you get more money early. If you file early and you owe, you protect your data, lock it out, and you still don’t have to pay until April 15.”

Protecting your data is only the start. Microsoft News reports submitting your taxes early could have an impact on a possible third stimulus payment.

The check could arrive sooner if your taxes are in. If you’re owed money from past stimulus checks, it could be bundled into whatever refund you receive. If you’re on the hook for taxes but owed stimulus, it’ll reduce the amount you have to pay.

You also want to give yourself a chance to set up a direct deposit with the IRS before the next stimulus check; you’ll get it faster that way.

And filing early gives you more time to fix errors. Remember all the life changes you experienced in 2020.

“If you’re working from home and you have home expenses, make sure you watch out for those in particular. If you have self-employment for yourself or your spouse, you may get an in-home office deduction,” Steber said. “There were lookback provisions for people who have earned income tax credit, they can take the better of 2019 income or 2020 income to help lessen the impact of lower-income.”

The IRS will begin accepting returns Friday, Feb. 12. MSN says 90% of filers will receive their refunds in 21 days or sooner.

This gives you time to correct any errors. You should start by finding out what you should have received in past stimulus payments so you can be sure to collect what you’re owed.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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