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Don’t Procrastinate on Your Taxes! Here’s How to Put It Off

Tax
CHICAGO - NOVEMBER 1: Current federal tax forms are distributed at the offices of the Internal Revenue Service November 1, 2005 in Chicago, Illinois. A presidential panel today recommended a complete overhaul of virtually every tax law for individuals and businesses. (Photo Illustration by Scott Olson/Getty Images)

Tax preparation might seem tedious, and it’s simple to procrastinate and wait until the very last minute.

Despite having a more extended deadline on 18 April 2023, many Americans still need to submit their taxes for this year.

They may have two months more before filing things and do it at the last minute, just like some top American procrastinators are when it comes to filing. However, there might be better courses than waiting to file your dues.

Tax

DES PLAINES, IL – MARCH 23: The top of a form 1040 individual income tax return for 2005 is seen atop a stack on the same at the Des Plaines Public Library March 23, 2006 in Des Plaines, Illinois. Americans are preparing for the income tax filing deadline on April 28, 2023 whether using tax software, filing on the paper forms or hiring a professional. (Photo by Tim Boyle/Getty Images)

Don’t Procrastinate: How Waiting To File Your Taxes Can Hurt You

WilmingtonBiz revealed the most frequent explanations for why individuals put off filing or wait until the last minute and address them. GoBankingRates, on the other hand, revealed why people should refrain from taking their time with the filing.

Some people fear paying too much

When people have more time to plan their payment plans, the earlier they’ll know about how much they should be paying. Additionally, you avoid making hasty financial decisions that might harm your financial status.

In addition, you will incur more tax and other fees if you wait too long and miss the deadline. For each month your return is late, there is a “failure to file” penalty equaling 5% of the unpaid taxes. Suppose you still need to pay your dues after reaching 25% of the maximum failure to file a penalty. In that case, you’ll be assessed another “failure to pay the penalty.”

Some won’t file just because they have a refund

Some people might not be as concerned about filling out an early if they are convinced they are entitled to a refund. However, the longer the government holds onto the return of income taxes, the longer they effectively lend them money at no interest. Does it sound great?

An expert told GoBankingRates that a refund is money you earned over the prior year that the IRS, regrettably, kept interest-free. 

The expert added that returning the funds as soon as possible would offer the payers more chances to deposit them in retirement or investment accounts and put them to use for their financial gain.

ALSO READ: Tax Filing Season: What To Know About Filing Taxes Head Of Household

Some find it difficult to pull everything together

It takes much information to be gathered in this day and age before people can submit their income taxes. Hence, hiring a seasoned expert should provide the payers with a list they can review to ensure they have everything they need for the filing.

Some people might use the sam software they did the previous year if they wait until the last minute to file their taxes. They cannot compare prices if they also file the last minute. They’ll thus either have to pay more, or they won’t get the complimentary services they were entitled to.

Biggest Procrastinators in US

Meanwhile, several individuals were curious about which states in the United States in 2022 had the highest procrastination rates. For this, IPX1031 measured Google searches for tax-related questions.

Nevada remains one of the top five states with the highest procrastination rates, holding the top spot on the list. Nevada was the fourth last year in the IPX’s 2021 Tax Day Procrastinators study. 

Hawaii continues to be in second position, and several of the top five states for procrastination from the previous year are still prominent on the list this year. Alaska fell from first place in 2021 to fourth place in 2022, while California maintained its fifth-place ranking. 

Several states that were listed as having the lowest procrastination rates in 2021, like Iowa (No. 50), Wisconsin (No. 49), and Michigan, were able to maintain their position this year (No. 48).

RELATED ARTICLE: Tax Filing Season Starts Early This Year, Can Get Frustrating

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