Tax season is upon us, everyone’s favorite time of year. Tax forms are arriving in our emails and mailboxes and many dread this chore year after year. Whether you owe money or are expecting a refund, getting started early may help make your tax-filing season less stressful. Beginning your tax preparation may help you avoid surprises, reduce your taxable income, and protect you from identity theft.

 

It will take the average person around 13 hours to fill in the required information on their annual tax return forms.1 The 2022 filing season began on January 23rd and the final deadline to file is April 18th, unless you file an extension. One of the reasons you should file early to avoid potential scammers and guard against tax-related identity theft. Criminals file fraudulent returns on your behalf and collect a refund in your name before you file. By filing early, your legitimate return will go through, and any potential false returns are rejected.

 

Since most of us do not find filing taxes a fun hobby every year, getting it done could make all the other items on your financial to-do list seem easier. According to the IRS, roughly two-thirds of files got money back and the average return in 2022 was $3,039.1  A new way some are keeping records of all their documents is to take pictures of the files and store them securely. Gone are old days of using a shoe box, there are many secure online ways to reduce clutter in the spare closet.

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Sources:
1 https://www.fidelity.com/learning-center/personal-finance/getting-started-on-tax-returns