It’s not too late to add “file taxes early” to your list of New Year’s resolutions — or tack it onto the pre-existing plan to stop procrastinating this year.
New York City tax experts say there are a slew of good reasons to file for your returns ASAP, as opposed to waiting until the April 15th deadline.
“The sooner you file, the sooner you get your refund,” said Joe Falanga, managing director at UHY Advisors NY. He also reminded filers that the IRS requests that everyone submit e-returns.
If you wait until the April 15th deadline, he explained, it could take a while for you to get your refund because the state and federal government will be sorting through all the returns that are coming in at the same time.
Often Falanga’s clients will have a refund coming from one return and a balance due on the other.
“File your federal, get your refund and then have your refund available to pay your New York State balances due, if you have any,” he suggested.
Getting your return in early also gives you time to amend it if need be, Falanga added. And it can help you avoid fraud as it gives thieves less time to steal your identity information and file a return on your behalf.
Krzysztof Wendland, a tax expert and attorney based in Borough Park, said if you wait until the deadline you risk missing it and getting charged a late fee.
In addition, Wendland said that if your accountant deems you eligible, you can say on your tax return that you will put money toward an individual retirement account by April 15 (also the IRA deadline), which will get you a tax credit.
You can then use the money from the credit toward the IRA.
You can also use your return to pay off debts, such as “if you have high interest credit cards that you need to pay off,” he said.
