Paying your taxes is a challenging time for many people.

They struggle with the daunting tasks of sorting out receipts, contributions, and their tax statements.

Tax time can be even more difficult for businesses or someone in a higher income bracket.

An accountant can help you keep track of your tax records and file your taxes. However, not everyone can afford to hire professional assistance for their financial records.

To avoid filing late, you should always begin organizing your tax information as soon as possible. Why not pay your tax debt to the IRS as soon as possible?

More importantly, filing your taxes early will take the stress out of last-minute reporting.

Why You Should File Your Taxes Before The Deadline

A tax services professional can help you with your back taxes.

If you submit your taxes in mid-January, you won't be responsible for what you owe until the April deadline. Filing form 1040 early will help you make arrangements for your anticipated payment.

Furthermore, you can avoid many tax scams by filing your return early. Many identity thieves target taxpayers on an income tax scheme early before many people think to file. Plus, early taxpayers can avoid delays.

What You Need To Know About Filing Your Taxes Early

Filing your taxes early means a faster return. Many people wait until April to file which could mean a longer wait. In fact, a paper check may take a few weeks. E-filing early is one of the fastest ways to get a quicker return.

If you will be getting a return, filing it as soon as possible with direct deposit can help expedite your return. Don't e-file without knowing the terms and conditions of their services. Read the rules for the particular e-filer's website that you choose.

Early taxpayers can avoid an extension. Most people need more time to organize their paperwork with an extension. An extension gives the taxpayer more time to gather receipts and/or look for extra deductions.

Unfortunately, if you don't pay what you owe with an extension, the IRS may charge huge penalties.

The Internal Revenue Service may request payment in full when you use an extension but fail to pay your taxes accurately. Paying your taxes earlier will eliminate the need for an extension request. If you don't owe anything, it's best to get your taxes filed early.

How Early Can Taxes Be Filed?

Many people have questions for the IRS each year. These questions can stop taxpayers from making very serious mistakes on their return. You should have your paperwork in order if you expect to file early. There is no guarantee you will get an early return by filing early. However, the IRS tries to get out tax returns as they're processed.

Your employer has until the end of January to issue your W-2s and you can then fill out your tax return. More importantly, 1099 tax forms are also issued by the end of January.

You can always hire a professional to help you file your early tax return.

They will assess your tax information and help you come up with the best return possible. A professional will help you get the most that you're entitled to each year. They know what kind of credit and deductions to apply to your taxes. Plus, an accountant can help you keep your taxes in order by using software technology. They often work well for businesses but can also help individual tax filers. You can search the internet for more details on a tax specialist for your early returns.

There are many questions that people should ask the business filing your taxes. The most important question is their qualifications. You should make sure the business or individual has a TPIN identification number. This number allows them to legitimately file your taxes.

The IRS has an online TPIN directory that will allow you to check their credentials. A lawyer may not always be legally qualified to file taxes. The Volunteer Income Tax Assistance (VITA) program is a great program to use to get assistance with your early return. However, they only help individuals with basic income tax returns.

Most people would never consider a large tax return to be a con. It’s certainly better than having to pay the taxman a huge chunk of change, but there can be drawbacks for some people.

Making smart decisions with your money includes paying taxes strategically. The Salt Lake City accountants at Anderson Bradshaw PLLC specialize in tax preparation and planning. They point out to clients that in some situations it may be best to plan taxes so that you pay less throughout the year and receive a smaller tax return.

Below is a rundown of the pros and cons of getting a big tax refund. Keep these things in mind now so you can start planning next year’s taxes.

Pro: A Tax Return is Extra Cash

Everyone likes getting a tax return because it feels like you’re being handed free money from the government. People eagerly check their tax return status, waiting for the moment when their bank account grows larger. The truth is many people can use the extra cash. According to Bankrate, nearly six in 10 Americans don’t have enough savings to cover a $500 unexpected expense.

Con: You Keep Less of Your Monthly Paycheck

Sometimes deductions and smart itemization lead to a fat tax return. Other times it’s because people pay more taxes than necessary every month. Some taxpayers do this purposely by arranging to have a surplus amount taken out just in case their taxes are higher than expected. If you aren’t sure what your tax responsibility will be and you want to minimize the chance of owing money in April, this is a sound strategy.

For the half of American families that live paycheck to paycheck, paying more in taxes than you need to every month may not be the best financial decision. This is especially true if you are continuing to rack up credit card debt or have high-interest unsecured debt.

Re-evaulating how much you pay into taxes could reveal that you regularly pay more than needed. Adjusting the withholding is like getting an immediate pay raise since you take home more of your paycheck every pay period.

Pro: Paying More in Taxes Forces You to Save

Are you the type that likes to spend? One of the advantages of overpaying taxes every month is it forces some people to indirectly save their money. If you’re the type that benefits from having Uncle Sam hold on to your cash then waiting on a large tax return could be financially sound.

Con: Many People Don’t Save or Invest Their Tax Return

Let’s be honest. When people get a chunk of money from a tax return a percentage of that money goes to discretionary spending. This is the spending that’s not necessary and can put a budget in the red.

What people should do with the extra cash is pay down debt (starting with the highest interest rate) or invest it so you can grow your assets. In surveys like the one conducted by GOBankingRates many people say they plan to use their tax return to pay off debt or bulk up their savings. However, 32% of respondents didn’t have a game plan. A great way to make sure your tax return isn’t wasted is to request a direct deposit into a savings account.

Pro: A Tax Return Can Act Like an Interest Free Loan

Some people treat their tax return as if it’s an interest free loan. They use it to make a down payment or purchase an expensive item that would otherwise require borrowing. If you don’t need the extra money for an emergency fund or paying bills, this is a financially savvy use of the return money since you’ll save money by avoiding interest. It’s also a sound strategy you’re not the best at saving money for a big purchase.

Con: Paying Too Much is Like Giving the Government an Interest Free Loan

When you receive a refund it’s the government paying you back money that was overpaid. But up until that point the money sat in federal government bank accounts, not yours. Instead of giving the government an interest-free loan, you could save the extra money yourself and earn interest on it.