Why Should I File My Taxes Early?

Procrastinators beware. You’re going to the end of the line, and your eager, prepared peers are getting the first-come, first-served treatment. They know the reasons why it’s best to file your taxes early, and the top five are:

1. Receiving refunds, credits and benefits quicker
2. Having extra time to get your payments together, if you owe taxes, by the May 2, 2022 deadline
3. Having the paperwork you may need to file, including things like school loan and mortgage statements
4. Avoiding penalties that come with missed deadlines
5. Preventing potential identity theft

To ensure that you’re one of the first to reap the benefits of filing early, rely on a service that gets you there faster and more accurately. TaxAssist Accountants serves personal and business clients on a first-come basis, so contact us today to get on our schedule before it fills up. File your taxes early.

How Does Late Filing Affect Me?

After more than 18 months of lockdowns and virus scares, any way you can avoid stress is a healthy choice. Stress affects you both mentally and physically. And taxes are a major source of stress, especially if you don’t file your taxes on time.

Don’t give in to your procrastination tendencies. Waiting too long to file your taxes very often carries consequences you may not have considered, such as:

• Waiting so long to get a refund or credit owed to you that you miss opportunities that require those extra funds
• Having to scramble to get the money together to pay the taxes you owe in time for the May 2 deadline
• Missing deadlines that require you to prove your income for certain loan applications, again creating missed opportunities
• Paying late filing fees, which can be as much as five percent of what you owe, on top of the interest and an additional one percent late fee every month that you wait
• Giving thieves more time to capture your identity and file your taxes, reaping your benefits for themselves

What’s the Best Way to File My Taxes Early?

The best way to file your taxes early is to maintain accurate bookkeeping throughout the year, so you just have to run one final report at the end of the year to tally up the numbers. Paying quarterly taxes as a small business owner saves you the aggravation of coming up with one lump sum at the end of the year, and also sets you up for a potential refund.

Using the expertise of our professional bookkeepers and tax accountants at TaxAssist Accountants throughout the year prepares you for the end-of-year hassle of filing. And if you’ve kept your own records through the year, you can send your receipts and income statements along on January 4 to our experts, so we have time to file your taxes early.

Preparing for the inevitable tax season is smart and financially prudent. Don’t spend your holidays scrambling to get your books together to settle up with the Canada Revenue Agency. Enjoy your friends and family and take some time off instead.

Date published Dec 17, 2021 | Last updated Jan 26, 2022

This article contains general information only and should not be relied upon for accuracy or completeness. You should seek appropriate tax or accounting advice from a qualified accountant before you take, or refrain from taking, any steps based upon this article. This article should not be construed as tax, accounting or other professional advice and QX Franchise Limited (Master Franchisee for TaxAssist in Canada) disclaims liability for any loss, howsoever caused, arising directly or indirectly from reliance on the information in this article.