4 Ways You Can Get More Money by Filing Your Taxes Early

By now, most people have received all the information they need to prepare their tax return and send everything off to the IRS, ideally scoring you a faster tax refund. But besides peace of mind and getting another major chore off your plate, there could be some significant financial upsides to sending in your documents sooner rather than later. Read on for the ways you can get more money by filing your taxes early, according to financial experts.

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1. You’re giving yourself more time to pay.

There are some cases in which people may have to wait a little longer for the information and forms they need to file their taxes. This typically includes people who are part of a partnership or have ownership interests in a business, with the necessary K-1 forms typically arriving by mid-March.

But if you’re working with 1099s and W-2s, getting on top of filing your taxes could save you from having to file for an extension, according to TurboTax.

The main reason this can be beneficial is when you may owe money back to the government. Since all bills are due on April 15th, having an early head start on saving and paying towards the amount owed can make it easier to get everything settled in time.

Otherwise, paying after the due date can result in fees, penalties, and interest that could end up costing you more than the balance due, per TurboTax.

2. You’re able to avoid costly mistakes.

Let’s face it: The busy nature of the beginning of the year can make it easy to procrastinate on filing your taxes. But experts warn that if you wind up rushing last-minute, you’re not just denying yourself an earlier return, but also potentially setting yourself up for costly errors and revisions down the line.

Taxpayers who file early have the significant benefit of knowing well in advance if they’ll have to file an amended return, which could be the result of an error or omission in their filing.

Unfortunately, those who wait until too close to the filing deadline could find themselves amending after everything is due. In some cases, this could wipe out much of your return, or even tack on expensive fees, penalties, and interest to your bill.

RELATED: 4 Social Security Changes That Are Already Affecting Retirees This Year.

3. You could make money off of your early refund.

Arguably, the best part about paying your taxes is getting access to any refund as early as possible. After all, who doesn’t love that extra infusion of cash to start the year? But if you’re hoping to really maximize the amount of cash you get back, pushing to file your taxes early could literally pay dividends.

“Once you’re relatively certain that you have all of your tax documents, file as soon as you can so that you can start investing your money,” Eric Bronnenkant, head of tax at online financial adviser Betterment, told Fox Business in an interview. “Because, in general, the IRS doesn’t pay you interest on your refunds. So getting that money in your hands sooner is better for sure.”

Still unsure of where to invest that money to earn on top of it? Even finding a high-yield savings account can help augment what’s come back to you.

4. You can use it to pay off other debt faster.

For many, getting that refund isn’t just a nice bonus: It’s an economic necessity. A new survey from TurboTax shows that 70 percent of Americans surveyed said they plan use their refund to cover basic living expenses, including paying rent and bills.

However, 21 percent of respondents also said they planned to use the money to help ease the burden of high-interest debt and other recurring payments.

“For millions of Americans, their tax refund is not only the largest check they get all year, but it’s also a financial lifeline,” says Lisa Greene-Lewis, a CPA with TurboTax. “Many taxpayers are looking for smarter ways to use that money, whether that’s building emergency savings, paying down debt, or navigating economic uncertainty. With filers expecting to see a $1,000 increase in refund this year, now is a good time to file your taxes if you haven’t yet.”