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David Adam

Tax Organizer 2023: Why You Should Wait for Filing Tax?

Filing taxes ahead of schedule is perfectly sound. In reality, commencing the process of federal tax filing well in advance might offer more significant advantages than commonly perceived.

Formally, the timing of taxpayers' tax return submission holds no significance as long as they adhere to either the original IRS deadline or an extended one. The 2022 tax year's deadline is April 18, 2023.

Nevertheless, despite the lack of a mandate, many benefits exist associated with early tax filing. Here are several key reasons why this holds true:

What is The Advantage of Early Tax Filing

Expedite Your Tax Refund Process


For those seeking swift access to their tax refund, initiating the filing process ahead of others is wise. Commencing your tax return submission promptly places you at the forefront of recipients set to receive their tax refunds. Opting for electronic filing (e-filing) coupled with direct deposit ensures the quickest delivery of funds once the IRS commences processing returns.

When the government owes you a sum, seizing the opportunity for its prompt receipt holds undeniable appeal. The quicker these funds find their way into your possession, the more time you'll have to harness their potential. Consider, for instance, allocating this surplus tax refund towards settling a credit card balance. This strategy not only spares you from continuing to accrue interest on outstanding debt but also maximizes the utility of the funds. You can review your tax refund process with Tax Organizer 2023.

2. Grant Yourself Additional Preparation Time


Let's be honest: most of us don't attain the level of organization we aspire to when facing the task of tax filing. The advantage of digital tax software lies in its capability to initiate the federal and state return process ahead of schedule, allowing for continuous updates as essential tax documents like W-2s or 1099s become available.

Consider this scenario: By procrastinating until the eleventh hour to file your federal income tax return, you suddenly realize mid-process that crucial forms are missing. Now, time is dwindling, and the search for necessary paperwork intensifies.


Similarly, as time elapses, recollection of potential tax-deductible expenses and eligible tax credits from the past year becomes increasingly challenging. The ability to recall events from over a year ago diminishes without comprehensive records. Filing early is optimal, preserving the recent memory of the previous year – especially crucial if you must log itemized deductions.


Allocating yourself to this added span for filing not only averts the need for a tax extension but also heightens the potential for a more comprehensive tax return. This, in turn, could potentially result in a larger tax refund.

3.Secure Additional Time for Tax Payment


In the event that you find yourself in debt to the IRS, initiating your tax return process ahead of schedule grants you a supplementary period to settle your tax liability. The deadline for payment falls on the tax deadline day (April 18, 2023). Opting for early filing provides an extended window to strategize and arrange for the forthcoming tax payment. This proactive approach helps avert the accumulation of tardiness penalties and interest on any unpaid tax obligation, a particularly crucial consideration when finances are constrained.


Moreover, it's pertinent to acknowledge that the IRS presents an array of repayment alternatives designed for households in the United States encountering difficulty in covering their complete tax debt upfront. If necessary, filers can submit an application for an IRS payment plan; however, it's important to note that late fees might still apply. By filing as soon as feasible, you allow ample time for financial planning to accommodate a potential tax bill.

4.Reduce the Risk of Tax Fraud


Regrettably, tax fraud frequently takes the shape of identity theft. If an unauthorized individual gains access to your Social Security number, they possess all the necessary components to submit a federal tax return under your identity, aiming to abscond with your entitled tax refund.


By opting for early tax filing, you effectively diminish the likelihood of falling victim to tax fraud. Swift submission of your tax return to the IRS translates to a narrower window of opportunity for wrongdoers to file a counterfeit tax return under your name.

Taxes Dues in 2023


IRS operations for the 2022 tax year officially commenced on January 23, 2023, with the acceptance and processing of tax returns. The key milestone of April 18, 2023, marked Tax Day – the ultimate cutoff date for submitting federal income tax returns. Simultaneously, this day also represented the final opportunity to seek a six-month extension for tax filing, which could be requested through the submission of Form 4868.


In cases of eleventh-hour filing, the IRS acknowledges a paper return as punctual if it was accurately addressed, bore adequate postage, possessed a postmark, and was dispatched via mail by the stipulated due date. As for electronic filers, the IRS takes into account the specific date and time within your time zone when your return was transmitted, thereby determining its timeliness.


Self-employed individuals and others subject to estimated tax payments must remain mindful of a distinct set of deadlines. These estimated tax payments are typically due four times annually, specifically in January, April, June, and September.

Can You Appeal Tax Extension While Due Tax?


Should you have sought an extension for your taxes, your federal tax return will have a new due date of October 16, 2023. To qualify for this extension, it's imperative that you submit Form 4868 by the original Tax Day (April 18). This extension provides an extended window for filing your return, yet it's important to note that it doesn't grant additional time for tax payment. Any owed taxes or a well-calculated estimation of this amount were expected to be settled by the initial tax deadline. Any outstanding tax balance after April 18 triggers the imposition of interest and penalties, accruing until the debt is fully settled.


It's worth mentioning that if you made a complete or partial payment of your tax liability via debit/credit card, Direct Pay, or the Electronic Federal Tax Payment System (EFTPS) by the deadline and indicated the payment as intended for a tax extension, the submission of Form 4868 was unnecessary. It's recommended to retain the confirmation number of the payment for your own records.


Certain individuals, such as specific military personnel, individuals affected by natural disasters, or U.S. citizens residing abroad, might qualify for automatic extensions.

What Will You Do If Your State Income Tax is Due?


State-level deadlines for income tax payments usually mirror the federal cutoff, although certain deviations exist. As an illustration, Virginia residents ordinarily enjoy an extended window until May 1 to fulfill their state tax return obligations.


Procedures surrounding the request for a state tax extension can diverge as well. Certain states, like Illinois and Ohio, opt for an automatic extension of the state tax return deadline to October 16, 2023, provided an individual's federal tax extension garners approval. Other states might necessitate online applications or the submission of supplementary forms. It's advisable to consult your state's tax and revenue authority for specific particulars.


Final Thought!


Opting for early tax filing brings forth several advantages, including accelerating your tax refund, extending the time for arranging owed taxes, and providing access to pivotal financial insights. Beyond these, an early tax filing approach can also alleviate stress and eliminate the need to rush through the tax return process at the eleventh hour.


However, it's important to acknowledge that legitimate factors might impede or discourage early tax filing. Situations could arise where you await essential forms or documents vital to the tax filing process. Your busy schedule or significant events in your personal life also pose obstacles to early filing. Ultimately, the decision of whether to prioritize early tax filing hinges on your distinctive circumstances and personal preferences.

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