Your alarm goes off, you’re rushing to work, coffee in hand, you’re just trying to make it through the morning. You finally sit down at your desk, and just as you feel yourself calming down, you look at the calendar. 

Tax season already?

Your mind immediately starts racing.

Where is that W-2 from my last job?

Did I save the receipts from those expenses?

Can I actually write this off? 

The worst part? You know this feeling all too well. Many individuals, households, and business owners find themselves scrambling once tax season rolls around, rushing to gather documents and make sense of their financial situation. The good news? There’s a solution. 

Preparing for tax season earlier sounds like the obvious answer. But this does more than reduce those January worries. Early preparation can make the entire process smoother, more accurate, and (even better) keep more money in your bank account where it belongs. It can also help protect you from something many taxpayers don’t think about until it’s too late: the scammers. 

More Time to Gather Information Leads to a More Accurate Filing and a Better Return 

Have you ever calculated exactly how long it takes to gather all your tax documents? Income records, expense documentation, investments, bank accounts, deductions…the list can go on. Many sources show that the average American can take between 9 and 12 hours just to gather these records. This does not include filing. Waiting until the last minute can definitely put you on a time crunch, and we all know what happens when we’re rushing. Mistakes. Here are some common  mistakes reported by the IRS that can significantly affect when you get your tax return: 

• Missing or inaccurate social security numbers- as a matter of fact, when’s the last time you’ve seen your social security card? 
• Figuring credits or deductions- calculating tax credits, like Earned Income Tax Credit, Child Care and Dependent Care Credit, or the Child Tax Credit, can be difficult to calculate. While Texans don’t pay state income taxes, residents still file federal taxes. Mistakes, even small ones, when claiming these credits, can lead to significant delays or missed savings. 
• Mispelled names- you read that right. Misspelling names is still one of the most common mistakes during tax preparation.

The verdict? Give yourself plenty of time to gather records and documents, and start filling in those forms early. When possible, keep your records organized in a designated folder throughout the year. You don’t want to risk making mistakes that are completely avoidable and can cost you even more time and money. 

Early Preparation Equals More Time to Identify Possible Tax Deductions and Credits 

Beyond avoiding mistakes, preparing early for taxes can give you and your CPA more time to identify deductions and credits for your household and your business. It’s estimated that 1 in 5 eligible taxpayers miss out on an average $2,700 credit. Who wants to leave that money on the table? Do you have a traditional IRA? Tax deduction. Did you make any donations to nonprofits over the past year? Those, too, are tax-deductible. There are also a myriad of legitimate expenses that can be written off as tax deductions. Giving yourself and your CPA ample time to sort through your yearly expenditures can help make sure you aren’t one of the 1 out of 5.

Scammers Count on Last-Minute Panic. Preparation Stops Them.

Using stolen Social Security numbers is one of the most common ways criminals commit tax fraud. Oftentimes, these fraudulent attempts take the form of phone calls in which impostors pose as IRS employees, claiming to be able to help you get caught up. Even scarier? Stealthy criminals who never put in a call and instead buy social security numbers and other private information from the dark web. Then, they play their luck and hope a return hasn’t been filed with those credentials yet. Filing early can help shorten the window they have to get their sticky hands on the money that should be headed to your account. 

Moral of the Story? Don’t Wait

I know, I know. That was a lot. But, tax season doesn’t always have to feel this heavy. At Jaime M Humphrey CPA, I prioritize helping my clients every step of the way. Not just when it’s time to put the pedal to the metal. I pride myself on providing my clients with as much knowledge as I can on how to plan, prepare, and execute tax season flawlessly. This isn’t an automated software. This is real help from real people who want you to get the most out of your hard-earned money every year. Interested in how I can help? Schedule a complimentary consultation below to learn more about how our services can help with those tax-season scaries.

Jaime M Humphrey

Certified Public Accountant

Jaime M Humphrey CPA, LLC