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When Should You File Your Taxes?

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Caution, tax season is coming. April 15th is traditionally known as Tax Day, the day that your 2020 tax return is due. Employers are required to have issued your W2 during January, which gives you nearly two weeks to gather your information and be ready to file on February 12th

With the IRS beginning to accept returns on February 12th, you get nearly two months to file. Does filing your taxes take two months? No. With great tools like TurboTax, you can file your taxes in minutes. If you are a P1FCU Member, you can save up to $15 on filing with TurboTax. Do you hire a professional tax preparer? Using a professional can take significantly longer, but more than likely, not two months. Whether you choose either of these options, filing your taxes as early as possible has several benefits compared to waiting until the deadline.

If you traditionally owe, filing as soon as possible can make the difference for your year financially. How do you plan to pay the amount you owe? By filing early, you're giving yourself the most time possible to plan and save. Say you owe $1,000, and you file on April 15th. Your payment is due on June 15th, that's two months to save that large sum. Imagine how much easier it would be if you started saving in February.

For many of us, tax season may be stressful, but it's nice to get some money coming in that we weren't anticipating. Do you already have a plan for your return? If not, consider investing it. Money that works for you is the best money. By filing early, you put your return in your pocket with more time to invest. With your membership, you even have access to our financial advisors. Learn more about our investment services by visiting p1fcu.org/investments.

Let's limit the stress early this year, get a jump on those tax returns. With vital financial planning, you can tackle that tax payment, use that refund effectively and take control of your finances at the outset of 2021.

If you are interested in filing with TurboTax, you are eligible for up to $15 off as a P1FCU member. To sign up, visit https://intuit.me/3s3sXNA.