November 12, 2010

Avoid Preparing Your Tax Return at the Last Minute

Prepare and Plan a Little Ahead

You should not wait to the last minute to prepare your income tax return.

For most, filing income tax return in late February or early March is possible when employment slips arrive. It’s even possible to prepare the majority of your declaration in advance and to finalize it with last-minute details. There’s no use to wait until April or even worse, till the end of April to send your tax return, especially if you’re entitled to a refund.

If you are a do-it-yourself investor like me, you may have to wait a bit longer for some papers because brokerage firms have till the end of March to send them out. You can still make sure that your transaction records are in order for your non-registered accounts. After a quick check when you finally get all your documents, you’ll be to file your tax return with no undue delay.
 

Estimation and Appropriate Planning

Preparing your taxes early will at least give you a fair estimate of your refunds or payments. You’ll then be able to plan and adjust your budget accordingly.

Avoid Errors

Without the pressure of the deadline, it will be less likely that you will make mistakes or forget deductions.

By reducing stress, tax time may even become a pleasant time.

Avoid the Busy Last-Minute Rush

If you use the services of a tax expert or a knowledgeable friend, he will surely appreciate the possibility of preparing your income tax return earlier, thus avoiding the very busy rush of the last days of April.

Get Your Refund Much Earlier

By filing your tax return before April, you will get your refund much earlier. The more you wait, the longer the delay. In fact, waiting just a couple of weeks could result in months before getting yours hands on your much needed refund.

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