The Benefits of Filing Your Taxes Early

Yes, it's only March, but the personal income tax deadline is approaching rather quickly. And it would seem that, despite the fact that most T4 forms or in the States, the W-2 form, are mailed out near the end of January or early February, most tax payers wait to the eleventh hour to file their taxes. Why is that? Believe it or not, there are some serious benefits to filing your taxes early.

1) The month's of January, February and March are much quieter, so whether you're dealing with the IRS or Revenue Canada, you won't run into excessive line-ups at the post-office. It was estimated that in 2010, up to 70% of tax payers were filing their taxes electronically, but that still leaves a whopping 30% who file their taxes through the mail. If you are standing in obscene post-office line-ups in the month of April, you run the risk of your taxes not being filed on time which can lead to penalties.

2) Filing early means you're not worrying about it for the first three months of the year! Listening to my friends complain of sleepless nights and stomach ulcers always made me scratch my head. Whether you owe money or not, why drag it out, and cause yourself more stress?

3) Reduce your risk of filing an inaccurate return! There are few things in life more stressful than a tax audit, and one of the top reasons that individuals or businesses are audited, is because someone has made an error during the filing process. If you are filing your tax return at the last minute, you are far more likely to make an error under the duress of a deadline, than if you were to file with a month or two of breathing room!

4) The faster you apply, if you are owed money, the faster you get your money! If you file early enough, you eliminate the temptation to get an "instant refund" from a third party that will take a huge junk out of your return. File early, beat the rush, and get every penny of your hard earned money to put back in your pocket!