Five reasons to file taxes early

WDIO
Created: February 22, 2021 11:20 AM

The pandemic forced the IRS to push back the tax filing start date this year, giving people less time to file before the April 15th deadline. 

Local financial professional Barry Bigelow from Great Waters Financial explains five reasons to file taxes early. One of which is avoiding last minute expenses.

"When you procrastinate you usually make mistakes and we see people forget to claim things they are eligible for so you end up actually paying more in taxes," said Bigelow. "When you make mistakes you end up having to pay penalites. The average penalty is somewhere between 10-50% on the mistake you're making."

Another reason Bigelow suggests filing early is to get refunded faster. In most cases, filing electronically is the quickest way to get money back, and if signing up for direct deposit allows people to potentially get refunded even sooner. 

It also gives more time to pay off what is owed. Bigelow says if a person owes money on their taxes, filing early will offer more time to plan and budget for their tax bill.

Finally, filing early helps prevent identity theft. Procrastination increases chances of someone stealing another's identity and refund.
 

Copyright 2021 WDIO-TV LLC, a Hubbard Broadcasting Company. All rights reserved

8 people dead, others injured in overnight Indianapolis shooting

Breakthrough COVID-19 cases in Minnesota

More closures begin Monday for Can of Worms project

Minnesota COVID-19 Update Friday

Collar cam: Voyageurs Wolf Project gives rare perspective

No prom for Duluth schools due to COVID concerns