Should I Wait to File My Taxes in 2021?

With the 2021 tax filing season approaching, many individuals may wonder if they should wait until the last minute to file their taxes. While filing early has its advantages, there are also potential benefits to waiting. This article will explore the pros and cons of waiting to file taxes in 2021, providing insights to help you make an informed decision.

Advantages of Waiting to File Taxes

  • More time to gather necessary documents: Waiting to file taxes can give you more time to gather all the necessary documents, such as W-2s, 1099s, and other income and expense statements. This can help ensure that your return is accurate and complete, reducing the risk of errors or delays in processing.

  • Potential for tax law changes: Tax laws are subject to change, and waiting to file can give you time to see if any new laws or regulations are enacted that could affect your tax liability. This can help you take advantage of any new deductions or credits that may become available.

  • Avoid penalties for late filing: While filing late can result in penalties, the IRS generally allows a six-month extension for filing taxes. This can give you additional time to gather your documents and complete your return without incurring any penalties.

Disadvantages of Waiting to File Taxes

  • Missed refund opportunities: If you are expecting a tax refund, filing early can ensure that you receive your refund as soon as possible. Waiting to file can delay your refund and potentially cause financial hardship.

  • Increased risk of errors: Filing taxes at the last minute can increase the risk of making errors on your return. This can lead to delays in processing, additional penalties, or even an audit.

  • Potential for identity theft: Waiting to file taxes can increase the risk of identity theft, as fraudsters may have more time to access your personal information and file a fraudulent return in your name.

Factors to Consider When Deciding

When deciding whether to wait to file your taxes, consider the following factors:

  • Your financial situation: If you are expecting a large refund or need to claim certain tax credits, filing early may be beneficial.

  • Complexity of your tax return: If your tax return is complex or involves multiple income sources or deductions, waiting to file may give you more time to gather the necessary documents and ensure accuracy.

  • Your comfort level with taxes: If you are comfortable preparing your own taxes and are confident in your ability to file an accurate return, waiting may not be necessary. However, if you are unfamiliar with tax laws or have a complex financial situation, seeking professional assistance may be advisable.

The decision of whether to wait to file your taxes in 2021 is a personal one that depends on your individual circumstances. By carefully considering the advantages and disadvantages outlined above, you can make an informed decision that best meets your needs. Remember, the IRS generally allows a six-month extension for filing taxes, so you have ample time to gather your documents and complete your return.

How to File Taxes For the First Time: Beginners Guide from a CPA


Should I file my taxes now or wait 2021?

The best reason to file your taxes early is to get your money sooner if you are expecting a tax refund. About two-thirds of taxpayers who filed returns on time last year received tax refunds averaging more than $3,000.

Can I still file my tax return for 2021?

The IRS can also hold refund checks when the two subsequent annual returns are missing. That means you should file returns for 2021 and 2022 as soon as possible. For the 2021 tax year, with a filing deadline in April of 2022, the three-year grace period ends April 18, 2025.

What happens if I haven’t filed my 2021 taxes yet?

Failure-To-File Penalty The failure-to-file penalty amounts to 5% of the unpaid tax for each month or partial month the tax return is late. The IRS limits its penalty to 25% of the unpaid tax amount, but will charge interest on the penalty.

Is it better to file taxes early?

You’ll eliminate any angst associated with tax deadline stress. Filing early provides for a better opportunity to secure needed quality tax services, often at more favorable pricing, and allows time to ensure that your return is accurate.

When should I file MY 2021 tax return?

The IRS expects millions of 2021 tax returns to be filed before the October 17 due date, including those who requested an extension, so we recommend you file electronically as soon as possible. People who file electronically avoid the processing delays facing those who file paper returns.

What if I didn’t file MY 2021 tax return?

If you didn’t file your 2021 tax return yet or request an extension to file, don’t panic or let that stop you from filing, especially if you owe money. Filing electronically as soon as possible can help people who didn’t file an extension and missed the April deadline avoid further penalties and interest if they owe taxes.

What happens if I file a 2021 tax extension?

If you filed for an extension by the April due date, you have until October 17, 2022 to file your 2021 tax return. An extension gives you extra time to file, but not extra time to pay. After you file an extension, if you owe taxes when you do file your return, you might also have to pay penalties and interest on the tax due.

Should you wait to file a tax return?

If you’re waiting to file because you need help or more information, have a more complicated tax situation or owe taxes, the IRS has resources to help get the answers you need to file an accurate return. While you should take the time to file an accurate tax return, don’t wait until the last minute and risk missing the October deadline.

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