They say the early bird gets the worm but when it comes to your taxes that may not always be the case. Don’t get caught up in “early-filing” and money-lending schemes this year. Here are just a few reasons why waiting until the IRS opening date of January 29th to complete 2017 tax returns saves time and money.
This early in January, most individuals don’t have all of their reporting forms to even begin filling out their 2017 tax return. If a taxpayer does enter all of his/her information early and then receives additional supporting forms after the fact, he/she will have to go back to the site to revise/add in the additional information which lead to the possibility of errors and wasted time.
Families looking to claim the Earned Income Tax Credit and the Additional Child Tax Credit will find that their returns will not be processed until mid-February and will not receive their refund until the end of the month anyway. Nearly 35% of all TBB federal tax filers were eligible for the Earned Income Tax Credit, totaling over $23 million, making the EITC a crucial tool for families in crisis.
Most importantly, no one’s return will be processed quicker because they entered their information prior to January 29th. The IRS will not begin accepting returns (e-file or paper) until the 29th.
In Tax Year 2016, The Benefit Bank helped nearly 40,000 tax filers at about 2,000 sites complete their federal tax returns during the tax filing season. Approximately 85% of these tax filers were due federal refunds totaling close to $61 million.