Fall brings with it cooler weather, football, and warm, spiced foods and drinks. For many, it is also the time to start thinking about upcoming holiday purchases and activities.
But these are not the only thing you should be doing as the season changes and the leaves start falling. There are also reasons you should begin working on your taxes in the fall.
1. File Taxes Earlier
Spending time preparing for tax season throughout the year, and particularly in the fall, allows you to file your taxes earlier come January. Instead of rushing around trying to make sense of unfiled papers and receipts you will already have much of the work done.
One way to do this is to stay organized. File your receipts, bills, and other important documents as you get them. If you haven’t been doing that, take the time this fall to catch up before the New Year arrives.
Another thing that can help is to stay in touch with your tax preparer or accountant. Take time now to set up an appointment with them for late January or early February. You will be able to go over your taxes then and get them filed early.
2. Reduce Wasted Time
The sooner you file your taxes the sooner your refund comes, if you are expecting one. Rather than wait around until April 14th to file your taxes, start preparing this fall so you can file right away in January.
When you keep up with filing your bills and other paperwork you reduce wasted time spent looking for needed documents to get your taxes sent in. Setting up an organized filing system can help.
3. Avoid Penalties
Waiting until the last minute to file your taxes could cost you extra money. If you don’t make the deadline and have to file late, the IRS will apply penalties. Of course, you could file an extension, but interest may still apply.
You’re going to have to file eventually anyway. Why not get it over with? Begin your tax preparations this fall and you will probably feel more relaxed when the tax season arrives instead of stressed.
4. Aids with Budgeting
As you begin working on your taxes in the fall you may gain insight into your budget for next year. You will have an opportunity to review income and expenditures for the current year and see what needs to change for the year ahead.
Furthermore, if you know you are going to owe on your taxes you can being setting aside money now rather than waiting until January. Will the government likely owe you a refund? If so, you can make budgeting decisions that take the added money into account such as paying off debt.
5. Reduces Stress
People who have their paperwork in order experience far less stress come tax time than those who do not. Working on your taxes in the fall can help with stress reduction.
However, you should not wait until December to work on your taxes. Come holiday time this will only add to your stress rather than reducing it.
There are plenty of reasons why you should begin working on your taxes in the fall. The only question is whether or not you will decide to help yourself out by doing it.
Have you ever worked on your taxes in the fall?