Should I File My Taxes Early? When is the Tax Deadline?
2020 was certainly an eventful year for taxes! There were extensions, exemptions, loans, stimulus checks, and more – all of which can make filing that much more complicated…ugh. To clear any confusion (or at least some of it), the financial experts at Maggi Financial Group and Tax Advisory list this tax season’s important dates as well as tips for filing early.
What are the advantages of filing early?
The IRS announced that February 12 is the date they will start accepting e-filed returns. But does it make sense to file early? Yes! Here’s why…
Faster Tax Refunds and Stimulus Checks
One of the biggest advantages to filing early is to receive a faster refund, especially if you opt for a direct deposit into your bank account. This year, in addition to getting your federal tax refund quicker, you also have two other major advantages – receiving your third stimulus check sooner and recovering any unpaid stimulus check money you’re owed.
Extra Time to Pay Money You Owe
By preparing your Form 1040 early, you will have extra time to arrange your payment if you end up owing money to the IRS. This is especially helpful to taxpayers who need to find out exactly how much they will need to pay the IRS.
Obtaining Financial Information
If you are expecting a big life change such as purchasing a home or going to college, preparing your tax return early can help you obtain essential financial information. Prospective homebuyers typically must show their completed tax return as proof of income, while college students use the information from a Form 1040 to apply for financial aid. Filing your return early gives provides a nice head start on collecting this paperwork.
Important Tax Deadlines and Dates
February 12, 2021: Tax filing start date for the 2020 tax year
April 15, 2021: Individual tax returns due for the 2020 tax year/ 1st-quarter 2021 estimated tax payment due/ last day to make a 2020 IRA contribution
June 15, 2021: 2nd-quarter 2021 estimated tax payment due
September 15, 2021: 3rd-quarter 2021 estimated tax payment due
October 15, 2021: Extended individual tax returns due
Need help with your 2020 taxes? Contact the financial advisors at Maggi Tax Advisory and Financial Group today to schedule a consultation. We can be reached at our greater Tampa Bay locations: Hillsborough at 813-590-6806, Pinellas at 727-334-7869, and Pasco at 727-334-7891.