Filing taxes can be one of the most daunting tasks adults do each year. So it's no wonder that some of us fall into the temptation of procrastination.
Mark Steber, the Chief Tax Information Officer at Jackson Hewitt, recently shared valuable insights on tax planning and preparation. He emphasized the benefits of filing taxes early this year, advising that it brings financial advantages and helps protect personal data.
"You file early, you get your money early. You don't have to be a financial wizard or a savant to know it's always better to get your money early than wait till April or even worse, for goodness sake, October," Steber said. Early filing can also safeguard valuable personal data.
"If you file early, you lock up your personal information, your name, and your Social Security number with the IRS. Not only do you lock up your data, you lock up your spouse's if you have one, your dependents if you have those," Steber pointed out.
What if you think you're going to owe money? Steber says there's a misconception there. "If you say I'm gonna file later because, I'm probably gonna owe, well, first, you don't know till you do it. And secondly, many people are incorrect." He also reassured taxpayers, "Filing is different than paying. So if you file early, get your money filed early, lock up your data filed early just to know and reduce stress." When discussing tax changes for 2023, Steber acknowledged the legislative alterations, like adjustments to the standard deduction due to inflation.
But more than anything, it's life changes that can make your taxes look different this time around.
"Life changes drive more changes, and quite frankly, receive a lot less press or media than tax law changes and are often overlooked," Steber added. Bottom line, Steber said, is to stay organized. Which is easier than it sounds.
"The shoe box organized into four components works...keep it simple," Steber said. "Simple works."
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