Dave Ramsey Says to File Your Taxes Early. Should You Listen to Him?

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This Dave Ramsey advice could be helpful for tax filers.  

It’s officially tax filing season.

If you haven’t gotten started on your returns yet, you may want to get moving — at least according to finance expert Dave Ramsey. Ramsey recommends filing your taxes well before the April deadline, and he offers several reasons why you should take swift action.

The big question is, should you listen to him?

Here’s why Ramsey says to file your taxes early

Ramsey identified six big reasons to submit your tax returns as early as possible in the filing season:

You can make sure your return is processed in a timely manner: Ramsey explained that millions of Americans had to wait to have their returns processed in 2022 due to backlogs at the IRS. He believes early filers are less likely to find their refunds delayed because they’ll get their returns in before the deluge of forms filed near the deadline. You won’t be stressed about meeting the deadline: Ramsey said you’ll be less stressed if you just act early to get your forms out of the way. He suggests “giving yourself a fake deadline — well ahead of Tax Day” in order to encourage yourself to get it done. You may get a larger refund: According to Ramsey, if you submit your returns early, you’ll have more time to ensure you’re taking every opportunity to save by taking every deduction and credit available to you. You’ll reduce your risk of identity theft: Scammers sometimes file fraudulent tax returns to get refunds they don’t actually deserve. If you file early, Ramsey believes you can reduce the chance that an identity thief submits a return in your name before you get a chance to. “Filing early may not completely get rid of the threat of identity theft, but it can protect your refund,” he explained. “If thieves file a return using your Social Security number before you do, the IRS will kick out your return since their records show you’ve already been paid.”You have time to make plans for paying your taxes: Not everyone gets a refund, and if you end up owing money, Ramsey said early filing can be especially important. “The more time you have to come up with the money, the less likely you are to bust your budget or drain your emergency fund,” Ramsey explained. Getting time with a tax professional will be easier: Finally, Ramsey said it will be easier to get help — and sometimes cheaper to get help — if you work with a tax professional early during the filing season.

For these six reasons, Ramsey said early filing is the best approach for most people.

Is Ramsey right?

Ramsey is absolutely right that there are huge benefits of early tax filing. Completing your forms can be complicated and there’s little reason to put things off to the end when you’ll run out of time to solve problems that arise.

So, get started ASAP If you haven’t already and get your forms submitted so you can get your refund deposited into your bank account ASAP or your tax bill paid on time if you owe.

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