Tax season is almost here, and with it, the pressure to get your tax return filed on time. Many people may be wondering what their chances are of getting a refund – and if so, how much they could potentially receive. In this blog post, we will explore some of the reasons why you should file your tax return.
If you need more time to prepare your tax return extension, there are several different types of extensions available, and the deadline for filing depends on the type of extension you request.
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The benefits of filing your tax return include: avoiding penalties and interest, receiving a refund, and increasing your chance of getting a refund. Here are the top five reasons to file your tax return:
1. Avoiding Penalties and Interest
If you don't file your tax return, you'll likely face penalties and interest. The most common penalty is the late payment penalty, which charges 1% of the balance due every month (or part of a month) until the debt is paid in full. Interest on late payments can add up fast! Additionally, if you under-file your taxes by even just 1%, you may owe additional money in taxes and interest later on.
2. Receiving a Refund
If you file your taxes on time each year, you have a good chance of receiving a refund. In fact, according to IRS data, about 60% of taxpayers who filed their 2014 returns received refunds within 45 days of filing. Even if you don't receive a full refund this year, it's still worth going through the process – filing will make sure that next year's taxes are taken care of automatically from your bank account.
3. Increasing Your Chances of getting a Refund
Filing your taxes can increase your chances of getting an early or full refund – depending on how much money you owe in taxes and how complex your tax situation is.