3 Reasons Why You Should Pay Taxes In Time
In life, at least two things are certain: death and taxes. Both of these are not fun even to think about, but they are inevitable. Property tax, unlike other forms, is a prerogative of individual State governments. While you can legally avoid paying other types of taxation, this one is a hard nut. Income tax, on the other hand, is the forte of the federal government.
Why Pay Taxes In Time?
Even the sale properties Cityplace people will advise you to pay your property taxes in time to avoid a brush-up with the law. Taxes go to improving roads, parks, and schools, as well as paying those in public service.
The set date to file your returns is 15th April of every year. If you file later than the date, you will be liable to a penalty, depending on whether you owed Uncle Sam money or not. The penalty will not exceed 25% of your unpaid taxes. Seeing as you had the whole year and three months to plan this, it would be best to be done well before the deadline.
Easy To Process Refunds
If you start the process early, you will have enough time to go through the required documents and to gather everything you will need to present for a potential refund. Also, you will reduce the chances of making mistakes, seeing as you will have enough time to review your returns before filling.
Americans overpaid taxes by up to $1 billion by failing to itemize deductions. When you itemize deductions, you capture everything and avoid leaving potential refunds on the table as you would when working at the last minute.
Prevent Identity Theft
The recent times have seen several cases of identity theft brought to the surface. In a rush to beat the deadline, you may be a bit sloppy with your information, losing it to an identity thief who will claim fraudulent refunds in your name. You can beat them to it by filling your returns early enough. The IRS paid over $3.1 billion to fraudulent claimers last year, and this could be prevented if we all guarded our tax information better.
Peace Of Mind
If you plan to apply for financial aid at any time, you want your documents with the federal government to be in order. FASFA, Free Application for Federal Student Aid, is used by both private and public institutions to determine eligibility for funding. You are better safe than sorry.